KWK - Quicksilver Resources Inc

[veloman]

[Archon810]

[veloman]

This is my first trade in a couple weeks, starting to get some confidence back. I'm already up .18 so I'm happy.

Check out the RSI - waay oversold, at bounce point.

[chan]

I don't see the triple bottom, but that isn't important I checked the chart with the Fibonacci Retractments. This is a definite reversal zone at 78%
You still need some confirmation though, this is a support level, don't get anxious.
I have traded this stock with success, look for a "hammer" on the candles

[Tekfreak]

bottom reversal hammer?? aka the "hammer stick" is at the bottom of the candle and the "mallet" portion is at the top

[veloman]

Well it's a triple bottom on a 5 day chart, if that means anything. My thinking is that this will either reverse soon, or it will be dead. It has such good momentum over the past 3 years, I think it's going to continue, and this is the bottom. I have a tight stop loss, and I don't think this stock will ever see below 36 again. Just playing my odds.

[chan]

Originally Posted by Tekfreak

bottom reversal hammer?? aka the "hammer stick" is at the bottom of the candle and the "mallet" portion is at the top

Yep, look back this particular security it has many of those traits,
There is always a hammer before it moves.
Even if it takes a few trading days.

Tekfreak look back over the whole year and you'll find one before every run.

[JeffB]

KWK is one of the most highly leveraged companies in the Oil & Gas Operations industry and has a Debt to Total Capital ratio of 60.05%. Additionally, the percentage of debt used in its capital structure grew this year. Given that the company's operating profits are 8.6x greater than interest payments, there should be little difficulty in repaying debt.

The company does a great job at managing their owner's equity and is above average at generating revenues from employees compared to the other companies in the Oil & Gas Operations industry.

Earnings growth at KWK outpaced revenue growth over the trailing twelve months. This is a trend that is not sustainable if profits are to continue to grow at this rate. However, this result was better than that of the average company in the Oil & Gas Operations industry.

Based on their Operating Profit Margin and Operating Profit Margin, KWK converts a larger percentage of its revenues to profits than most other companies in the Oil & Gas Operations industry. Furthermore, the company is profitable with an operating margin of 48.04%.

P/E ratio of 33.66x seems expensive compared to the industry norm of 16.57x.


What do you guys think about this stock considering it is a natural gas/oil company? Will the bounce be lower considering natural gas has came down a long way the past few weeks?

[JeffB]

Up .26 at 10:03 am. Need opinion - do you think the bounce will be lower with natural gas prices falling? I wonder what percent of revenues with this company is in n. gas and what percent is in oil? Would be interesting to see how it is weighted with these two aspects.

[Seb]

jeff,

i had similar thots too.. checking on the price ratios and debts, it seems a little overpriced.. but the management is solid.. msn rating of 9 is typically fundamentally strong overall..

looking at the one year daily chart, this stock seems to move up on MACD crossover.. which this stock seems to be heading close to it..

the 5 year chart is trending up or flat but seems to be due for an upward move..

i was thinking of purchasing the call options but was concerned the price movement may not be rapid enough sinice it is a little overprice... and the company missing out of earning estimates for the last 2 Qs...