Author: CJ Brott, Capital Ideas
Model: Macro Plus Income
Disclosure: Long KWK
Darden Family Interests announced Thursday (3/17) that they have determined not to pursue a take-private transaction announced last October. Although Quicksilver Resources Inc (KWK) is down 3.56% on 578% of average daily volume (as of end of day, 3/17), we believe the company still represents value. In our opinion, the companies’ properties in the Barnett shale, and the Williston basin remain attractive. If we did not already own our maximum size position we would have added to our holdings this morning. We continue to believe the energy sector will outperform most others this year.
CJ Brott
Capital Ideas
Sources:
“Family drops plan to take Quicksilver private” Jack Z. Smith, Star-Telegram, 3/17/11
http://www.star-telegram.com/2011/03/17/2930494/family-drops-plan-to-take-quicksilver.html
All pricing/volume information from Google Finance
