Monday, April 1, 2013

BlackBerry's Gross Margins And Z10 Shipments Support Bullish Case

Shares of BlackBerry (BBRY) displayed historically little volatility after the cell phone producer released its fourth quarter results for its fiscal 2013 before the market open on Thursday. Shares initially spiked up to trade with gains of around 6% before gradually falling back during the trading day to close the day with a small loss of less then 1%.

Fourth Quarter Results

BlackBerry generated fourth quarter revenues of $2.68 billion, down 36% on the year before. Revenues fell 2% compared to the third quarter, and missed consensus estimates of $2.82 billion.

While revenues missed consensus estimates, the company reported very strong gross margins. Gross margins came in at 40.1%, up 660 basis points on the year, and up even 970 basis points compared to the third quarter. The extent of the margin improvement compared to last year is impressive as revenues fell by little over a third over the past year.

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icksilver: Shareholders Applaud Barnett Shale Asset Sale

Shares of Quicksilver Resources (KWK) rose sharply in Monday's trading session, trading with gains of up to 39%. The independent oil and gas company on Friday announced the sale of a 25% interest in Barnett Shale assets to TG Barnett Resources LP, a subsidiary of Tokyo Gas.

Shares gave up some of the gained ground towards to session end and closed the day with gains of 15.5%, to close at $2.60 per share.

The Deal

Quicksilver Resources announced that it has agreed to sell a 25% interest in its Barnett Shale oil and gas assets. Quicksilver will receive $485 million from TG Barnett Resources, and the firm will remain the operator of the assets.

The companies furthermore announced that future capital requirements will be shared proportionally to each party's working interest in accordance with applicable operating agreements.

Read the entire article on Seekingalpha by clicking the following link