It appears that SA has a different opinion amoung its writers given that the new article from a guy who is buying CHKR at these prices has driven the price UP today.
I think the truth of CHKR lies somewhere between the two articles. I do agree with they guy today more than the first article and would be buying at even today prices just like he says he is doing.
The dividend rate is a great return and while it will trend down over half of today's purchase price will be returned to buyer by 2017. That leaves 14 years to recover the rest and make some money.
The risk verses return of the investment to me at least is positive given what a CD or most bonds are paying.
The first article I think drove the price down plus the truth that the cash flow and balance sheet wasn't doing as well as expected manly due to low price received for NG which was under 2 bucks. That has to come up.
NG is on the rise and the storage numbers in the last 4 weeks have given us 4 buck NG. I think the trend toward average or below 5 year storage will continue during the summer months as NG drilling is not increasing enough to give more production numbers above the down curve on old wells.
If you look at CHKR at a price between 14.50 and 18 bucks over the next 17 years I like what how the numbers work out. Which article is correct? Both but as an investor I feel like the the one today shows what my investment will do over the next 17 years and I like it. Good Investing
Even if his estimates are optimistic I think the stock could still be an interesting spec. Also with new management in the picture at chk is it possible they were being conservative in the annual report so they could look good later.