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KWK $43.90 Quicksilver ** Stop Loss $41.50 **

Quicksilver is a driller of unconventional gas. It dipped to $42.05 on Monday to trigger our breakdown entry at $42.50. The company has very low costs and earnings are expected to increase by 50%. I am not putting an insurance put on this play and we will go with a stop loss instead.

Earnings due Tue August 2nd after the close.

Company info:

Quicksilver Resources Inc. (Quicksilver) is an independent oil and gas company engaged in the exploration, acquisition, development, production and sale of natural gas, crude oil and natural gas liquids (NGLs) primarily from unconventional reservoirs, such as fractured shales, coal beds and tight sands. Quicksilver's operations are concentrated in Michigan, Indiana/Kentucky, Texas, the Rocky Mountains, and the Canadian province of Alberta. At December 31, 2004, Quicksilver had estimated proved reserves of 968 billions of cubic feet of natural gas equivalent (Bcfe). Approximately 92% of its reserves were natural gas, 77% were classified as proved developed. Approximately 62% of the estimated proved reserves are located in Michigan.

Breakdown Target
BUY Dec 2005 $45 CALL KWK-LI @ $3.50

No insurance put

Entry $42.50 (7/18)

 

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