I dont think this is good or bad but a realistic assesment of the current conditions at QRE but I reach a different conclusion than mobettafred. Buy QRE if you want 11% yield and an 20% capital gain in the next year. I cant think of a safer way to get those results. I know of higher growth stocks but not with this yield nor this low price. I also know of other high yields but I doubt your going to get the price growth because they are not fire sale cheap like QRE.
If you dson't believe me look at the mgmt buys this week in the 4K fileings.
Your risk tolerance is definitely a factor. This is the part that stood out to me - reserve base that is small ..... aggressive financial policy .....that relies heavily on acquisitions.................... risk profile as vulnerable and its financial risk profile as aggressive......and its high cost structure....... risk profile as 'vulnerable' and its financial risk profile as 'aggressive.' I left out the 'good stuff' because the financial vulnerability depending on acquisitions is what is matters to me - reminds me of chk - IMO respectfully
this is the quote Rationale The ratings on QRE reflect a reserve base that is small relative to the company's speculative-grade E&P peers, an aggressive financial policy evidenced by a reserve replacement strategy that relies heavily on acquisitions, its relatively high dividend payout to shareholders, and its high cost structure. Our ratings also reflect QRE's good liquids exposure, and good hedge book over the next several years that should provide some stability against hydrocarbon volatility, a high percentage of lower risk proved developed reserves, and modest capital spending requirements.
We consider the company's business risk profile as "vulnerable" and its financial risk profile as "aggressive."