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February 18, 2009
In Scott We Trust: A Discussion With New Idearc CEO Scott Klein
Yesterday, I spent about three hours with Idearc Media CEO Scott Klein, who shared the vision he and his management team have for the company. Some of that vision is encapsulated in the roll out of SuperGuarantee, a major new initiative. Other clues are found in several enhancements to the core Superpages site. My biggest take-away: Klein’s overarching mission to reestablish the notion of trust inside and outside the Idearc organization.
Since taking the helm of Idearc in June 2008, Klein has promoted more than 100 managers. While he did bring in a couple of key managers from the outside, he found a wealth of creative and energetic talent right inside the Idearc organization.
Amen to that. There’s nothing like upward movement within a large company to instill a sense of hope in an organization many would have considered leaving for dead a few months earlier. In our view, Klein’s attention to the company’s mental health should go a long way in reestablishing trust among the “rank and file” — in this case, the sales reps and managers who are out there day in and day out meeting with the millions of small businesses that are worried and concerned about the economy.
To those outside Idearc — its consumers and advertising clients — Klein has rightly focused on rebuilding trust. For users of Idearc’s various information brands — the book, online or mobile — the launch of SuperGuarantee is an important step in the right direction. It offers users an avenue for resolving situations where a service provider fell short of the consumer’s expectations. While this is bound to strike a chord with consumers, the ultimate test will be if usage — offline and online — grows.
Having been part of the ValueStar team in the mid-1990s in Northern California and watching closely various other attempts to offer a “good housekeeping” seal, I believe Klein and team are on the right path. But it may well prove to be a path that has more ruts and potholes than a large organization like Idearc can patch quickly. It is a bold move toward rebuilding trust for the Superpages brand among consumers and has the potential to differentiate the brand in the faces of numerous competitors.
Let’s assume Klein and team ultimately succeed in working their “trust me” magic on employees and consumers. Their greatest challenge will be to build a level of trust between the company’s thousands of sales representatives and nearly 1 million small-business advertising clients.
Yellow Pages companies — large and small, incumbent and independent — have spent nearly two decades burning goodwill and trust among their advertisers. Whether they were raising rates in the face of clear usage and/or distribution declines, or simply not being transparent and objective in planning a print Yellow Pages campaign, advertisers — large and small — are reluctant to “trust” Yellow Pages publishers. It is ultimately this constituency that Klein and team — and Yellow Pages publishers in the U.S. and around the world — must address.
As the marketplace moves toward a multiproduct, multiplatform world, the Yellow Pages publishers are in the enviable position: They have a sales channel that is both deep and broad. No other local medium can make that claim. But that claim will ring hollow unless a new trust is established. Klein and team get it, and others do too. Now it’s time to execute.
Digg!
They are using the "seperator". They have used the "seperator to seperate investors from there money.
SMC
NICE END OF DAY COMEBACK.
AAUK
Looking to get exposure to some Platinum and this looks like a low risk way to do it. Any opinions?
Who is Putnum?
(ZACKS) ZACKS RESEARCH STORY FOR: IDEARC INC
ZACKS RESEARCH STORY FOR: IDEARC INC
================ [IDAR] ZACKS RESEARCH STORY FOR: IDEARC INC ================
(IDAR) IDEARC INC CUSIP: 451663108
Address not available FYE: 12 ZRANK: 2
==============================================================================
2/11 Price 52 W Low 52 W High YTD % Chg 10D % Chg 12M P/E FY1 P/E
0.07 0.02 9.70 -22.22 0.00 0.0 0.0
==============================================================================
ESTIMATE CHANGES FOR THE FISCAL YEAR ENDING DECEMBER 2008
-----------------------------------------------------------------------------
Feb. 10 -- Wachovia Securities lowered the estimated earnings per share of
IDEARC INC for the fiscal year ending December 2008 to $2.25 from
$2.36.
What makes you guys think AURC has any GOLD?
AGT
Just picked up some more at 30 cents.
Here are the current Gold and Metals stocks I own.
GG, TGB, PZG, AGT, CDE, FRG, GBG, and last but not least a slug of SMC thank you again cl001.
Trying to pull the trigger on buying more at this price but difficult when the stock looks like s---. Like the risk reward here. Could be 20-1.
GBG
Picked up a starter position in the GBG today.
What do I get for being in last place?
Luckily my real portfolio is doing very good thanks to alot
of Gold and cl001 (SMC).
(COMTEX) B: Quicksilver Resources' Estimated Reserves Grow 42% to 2.2 Tcfe
in 2008 ( Market Wire )
B: Quicksilver Resources' Estimated Reserves Grow 42% to 2.2 Tcfe in 2008 ( Mark
et Wire )
FORT WORTH, TX, Jan 28, 2009 (MARKET WIRE via COMTEX) --
Quicksilver Resources Inc. (NYSE: KWK) announced today preliminary
operating results for year-end 2008 including:
-- 2.2 Tcfe of proved reserves - an increase of 42% from year-end 2007
-- 474% organic production replacement; 785% total production replacement
-- Record average production of 263 MMcfe per day
-- $2.14 per Mcfe Finding & Development cost; three-year average of
$1.45/Mcfe
-- $2.50 per Mcfe Finding, Development & Acquisition costs; three-year
average of $1.71/Mcfe
"Quicksilver had another outstanding year of production and reserve
growth at very attractive finding and development costs," said Glenn
Darden, Quicksilver president and chief executive officer. "Our low
cost structure coupled with our strong hedge position is serving us
well during these uncertain economic times. We are confident that
our operating team will realize additional efficiencies to maximize
our margins in 2009."
Estimated Year-end 2008 Proved Reserves
Preliminary estimates of year-end 2008 proved reserves total
approximately 2.2 trillion cubic feet of natural gas equivalents
(Tcfe), an increase of approximately 42% from year-end 2007. By
product, 2008 reserves were comprised: 74% from natural gas, 25% from
natural gas liquids and 1% from crude oil. Approximately 63% of the
reserves are classified as proved developed. Reserves in the Fort
Worth Basin Barnett Shale totaled approximately 1.9 Tcfe at year-end
2008, an increase of approximately 58% from the prior year and
reserves in Canada were approximately 333 billion cubic feet of
natural gas equivalents (Bcfe).
Preliminary 2008 production totaled a record 96.2 Bcfe or 263 million
cubic feet of natural gas equivalents (MMcfe) per day. Preliminary
net reserve additions of approximately 755 Bcfe consisted of
approximately 456 Bcfe from organic drilling activities and 299
billion cubic feet (Bcf) of acquired reserves, resulting in organic
production replacement of 474% and total production replacement of
785%. Additions to reserves from organic drilling activities were
impacted by approximately 154 Bcfe in negative revisions of prior
estimates, primarily due to lower prevailing prices for natural gas
liquids at year-end 2008 versus 2007. Excluding these revisions the
company would have organically replaced 634% of its production in
2008.
Total all-in finding and development cost (F&D) for 2008 is estimated
at $2.14 per thousand cubic feet of natural gas equivalent (Mcfe)
which would result in a three-year average of $1.45 per Mcfe.
Finding, development and acquisition cost (FD&A) is estimated at
$2.50 per Mcfe for 2008 resulting in a three-year average of $1.71
per Mcfe. Absent the negative reserve revisions due to pricing, the
2008 estimated all-in F&D and FD&A costs would have been $1.60 per
Mcfe and $2.07 per Mcfe, respectively. The all-in F&D and FD&A costs
will be finalized upon filing of the company's annual report on Form
10-K. Reconciliations of the "Preliminary 2008 F&D and FD&A Costs"
are available on the company's website -- www.qrinc.com. For a
description of the calculation of, and certain other information
regarding, F&D and FD&A costs, please see the discussion below under
the heading "F&D and FD&A Costs."
2008 Year-end Debt, Liquidity and Debt Covenants
Quicksilver's senior secured revolving credit facility has a
borrowing base of $1.2 billion, of which approximately $828 million
was drawn and $3 million in letters of credit was secured at December
31, 2008, resulting in current liquidity of approximately $369
million. The company's borrowing base is subject to redetermination
during the second quarter of 2009 based upon the final year-end 2008
reserves and includes credit for the company's hedge positions.
Based on preliminary results for 2008 and year-end reserves, the
company remains in compliance with all of its debt covenants.
2008 Impairments
Quicksilver utilizes the full cost method of accounting for its oil
and natural gas properties. Based upon commodity prices in effect as
of December 31, 2008, the company expects to record a pre-tax, noncash
impairment charge of approximately $635 million ($412 million after
tax) against its U.S. oil and gas properties. Additionally, the
company expects to record a pre-tax, noncash impairment charge of
approximately $320 million ($208 million after tax) associated with
its investment in BreitBurn Energy Partners.
Hedging Summary
For 2009 and 2010, the company has hedged approximately 75% and 65%,
respectively, of its anticipated natural gas production at a NYMEX
weighted average floor price of approximately $8.60 per million
British thermal unit (MMbtu) in both years. For 2009, the company
has basis hedges covering approximately 95% of its expected Canadian
natural gas production at $0.84 per MMbtu. In addition, Quicksilver
holds firm transportation to Henry Hub for 100 MMcf per day at
approximately $0.52 per Mcf and 260 MMcf per day priced at the
Houston Ship Channel at approximately $0.35 per Mcf, including fuel,
for production from the Fort Worth Basin. The company also holds 50
MMcf per day of firm transportation on the Mid Continent Express
pipeline, which is scheduled to be completed in the third quarter of
2009. This pipeline will take gas from the Fort Worth Basin to Transco
Station 85 in Alabama. The company has used a combination of
fixed-price swaps and collars in its hedging program to underpin its
$600 million capital budget for 2009.
A summary of these hedging contracts is available on the company's
website at
www.qrinc.com/corporate/investor_relations/financials/Outstanding-web%20as%20of%
Great Call cl001.
ARHHHHHH WAHOO MATEE TAKE THE WOMAN BELOW.
C = $3.47
I normally don't do financial stocks and plead ignorance. Anybody have an opinion on Citigroup down here. Is the world coming to an end or are we going to look back and see this thing at $30 in 5 years
ZYXI
Had a GTC order in to buy ZYXI at $1.12. Just got a partial fill. Havnt been in this stock for a while.
Bought some GG this morning.
john302
That is the best post that had nothing to do with investing that I have read in a long time.
cl001
SMC and RAME
Well we both loaded up on the SMC and it flew. Hope for the same response from RAME.
RAME
Just started a position at $1.05. Looks really inexpensive here.
bbotcs
Havnt I told you not to start drinking this early in the morning?
OT
Israel wants one thing. Hamas to stop shooting rockets into there cities every day.
Hamas wants one thing. The total destruction of Israel and its people.
I cant imagine what we would do if we had a Hamas on our border?
The end game on this Israeli Hamas fight may be for Egypt to take over Gaza. Just heard a guy on the TV say it and it would make a lot of sense.
WHX
EIK finally pulled the trigger and bought some of your WHX today. Looks like a no-brainer unless it isn't and than I am the no-brainer.
AGM
What did you guys do? I went out for 2 hours and the AGM crashes?
OK not a crash but it looked like it was breaking out and its now down.
AGM
Looks like it is breaking above the downtrend line. Could be a good 2009 for AGM.
AGM
OK all the talk on the Mother Board the last few months on AGM I finally bought a slug today.
IDAR and RHD
I have been accumulating IDAR which looks similar. Think I will buy some RHD also. Thank you for the info.
Thinking about reentering NG if it gets down to around $1. Any thoughts?
As far as I can see PIP is 100% consistent. If you are looking to drill dry holes than use PIP and you've got a great chance to succeed.
SMC
I cant think of any reason why I would want to sell. The potential here is so much greater than any risk especially with the merger. I will buy more if there is any weakness.
Thank you cl001 for bringing SMC to my attention.
SMC
I will not be selling any of my SMC. This is another possible dream miner.
Years ago I bought WHT=GG and AUY and DES and this looks like another that could be a multi multi bagger over the next few years.
No we are at 100% unsuccess rate with PIP.
HBMFF
Here is a beaten down real company. Any opinions?
EIK a while back you were dabbling in the WHX. What is your current opinion?
SMC
Looks like a pretty tight market because its not taking much volume to move it up. This thing could be a buck in a few months on some good financing news.
SMC
Hey what are you guys doing I was hoping to accumulate a little more before it started moving.
SMC
I'm with you cl001 the risk reward here just doesn't get any better.
This horrible bear over the last few months has opened up some incredible opportunities.
OK Eik thank you for the clarification.