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Quicksilver Gas Services: Not Your Typical Gathering and Processing MLP

Hey granger:

I am also working on mlps. We should talk. Send me your personal email. Here's mine: DRrmudd AT inboxDOTcom


On Dec 06 04:03 AM granger wrote:

> Good article, thank you.
>
> I am working on building a basket of the best MLP's
> (smallest funding needs and commodity exposure), maybe 4-5 issues,
> preferably with a monthly dividend stream, and going long.
>
> Then finding an ETF of MLP's or build a basket of poor ones and hedge
> my long basket by maybe 25/50% and collect the income stream.
>
> Thoughts, ideas? Maybe we can get some ideas together here and share
> them.

Quicksilver Gas Services: Not Your Typical Gathering and Processing MLP

A couple of things to keep in mind here, if you care what analyst's might think, is that Standard and Poor's Stock Report is saying the following:

"... we think that KGS's revenues will be hindered, as its parent, Quicksilver Resources (KWK) plans to reduce its capital expenditures for the remainder of 2008 and 2009."

They go on to say that they believe KGS's dividends will drop slightly next year, as will its price, and rate the company only two stars (a sell) out of a possible five stars.

Well, maybe S&P will be right, and maybe it won't.

On the other hand, Reuters Research rates the stock an "Outperform."

The stock's current dividend yield is about 16%, which is very tempting under the circumstances.