Eagle & Beagle: Sunday September 28, 2008

By Don Mecoy

Published: September 28, 2008

Our top performing state-based stock is a good illustration of how screwy the markets were last week.

Quest Resource Corp., an Oklahoma City energy company, rose 7.7 percent over the past five trading days.

QRCP recently fired its chief financial officer and its chief executive officer resigned after the CEO apparently created a $10 million slush fund with company cash.

The Securities and Exchange Commission, the state Securities Department and the U.S. Attorney are working with the company on its investigation into the matter. Last week, a securities law firm filed the latest of several shareholder suits against the company

The market already had punished Quest for the revelations about the missing money, and last week's small recovery wasn't a huge surprise.

But in a week of meltdowns and bailouts, that was our best stock.

Trying harder isn't enough to be successful in the rental car business in an era of $3 a gallon gasoline and $25 baggage fees.

Last week, Tulsa's Dollar Thrifty Automotive Group disclosed more problems with its business model. DTG, which already has been battered this year by the market, lost more than half its modest value to end the week at $2.16 a share. That's an all-time low.

The company said it must make some changes or get some allowances to avoid violating covenants of its credit facility.

Poor per-day car rental revenue and continuing problems with the depreciation of its Chrysler-dominated fleet are costing the company. Meanwhile, one of its tour operators in London declared bankruptcy.

Take this beagle on a vacation, and rent a car while you're at it.

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