Naz News, Gappers and FLE's

[baletwine]

ZQK Quiksilver: Color on Quarter (3.62 )

Keybanc notes ZQK reported an in line quarter, ex-items. They note the co announced it signed a secured loan agreement with a private equity firm, it re-financed its asset backed credit facility, and it's in talks with European banks to secure a new term loan. They note these items effectively eliminate all of ZQK's liquidity needs through '10. While it underscores their bullish thesis on the name, they are disappointed with the sheer cost of ZQK's incremental liquidity. They were also somewhat disappointed to learn that half of ZQK's expected improvement in '10 operating income centers on "blocking and tackling" type savings such as sourcing. They are increasingly confident that the shares offer a compelling opportunity for long-term investors with little downside risk given ZQK's newfound liquidity, the removal of dilution-related uncertainty, and the fact that earnings are already at trough levels. They are lowering their FY09 est to $0.20 from $0.26 (consensus $0.24).

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