Replies to post #1141 on Energy (Oil & Gas) Stocks | NYSE | AMEX | NASDAQ

[Timothy Smith]

$KWK - Interesting value proposition.

Clearly the market has been on a serious drop due to revenues dropping.

Revenue fell 31.6% to $177.7 million, and the company reported a loss of $0.04 per share. Analysts had expected $181.5 million in revenue and a loss of just a penny per share.

Quicksilver is still dealing with a huge debt load, and today's loss doesn't give investors any confidence in its operations. Management expects to reduce debt in the future, but it's still unknown how that will take place and what assets Quicksilver will have to sell as a result.

Early in January Macquarie downgraded Quicksilver Resources (NYSE: KWK) from Neutral to Underperform with a price target of $2.50. It is now hitting this which may indicate it could be hitting bottom.

As of Jan. 31, 2013, 14.8% of outstanding Quicksilver Resources shares were held short. That is relatively low in my opinion which leads me to believe that the market realizes a bottom may be setting in.

With the U.S. winter set to be colder than the unusually warm last one, we might expect some balancing of the commodity's supply/demand disparity on the back of its more normalized use for space heating by residential/commercial consumers. This, in turn, could improve the prices and buoy natural gas producers like $KWK.