Sweet 16 Updates - Dec 20

[dan_s]

I've updated all of the Small-Cap forecast models and I will update several of the Sweet 16 models before I start on the newsletter on Friday afternoon.

I just finished updating Callon Petroleum (CPE). What's crystal clear is that unless I assume WTI averages $40/bbl for all future periods, I cannot come anywhere close to where these stocks are trading today. Panic selling has taken them way below breakup value.

In addition to computer generated selling of oil futures, there are very few buyers.

Are we heading into a massive global depression? If so, maybe this makes sense. However, even if there is a global economic slowdown, demand for oil will continue to go up year-after-year.