on this turd????
$3.29 for 1000CF, C'mon!!!! How can CHK pay their idiot CEO over $110 million for driving CHK into the ground? And how can anyone be long this turd?
And how the F#@K is CHK going to pay off over $14 BILLION in debt with thei main commodity being worth almost nothing?
CHK is a short's wet dream, and a long's nightmare. I have never felt more sure about being short a stock than I feel with CHK.
Don't be a bagholder when the poopy hits the fan.
Wow, Mr. Hankes, the guy who doesn't know a MCF from a TCF, has mastered the obvious by figuring out that NG prices are low right now. Good job, moron. What's next - are you going to tell us that oil prices are also down a lot? You are a friggin' genius, dude. Please keep shorting - it's going to be hilarious to watch you get decimated.
massive reserves of a worthless commodity, polesmoker:
Gas, crude prices soft
Thursday, April 23, 2009
Alex Mills - Oil & Gas
The economic recession continues to keep demand for natural gas and crude oil down and prices soft.
The Energy Information Administration at the U.S. Department of Energy reports that natural gas prices continue to show considerable weakness because of oversupply. Natural gas prices at Henry Hub are 74 percent below the July 2008 price of $13.31 per mmBtu, their lowest price since 2002.
“A lower level of industrial demand for natural gas continues to play a key role in the natural gas market being generally low level of natural gas prices,” EIA said. “The economic weakness that led to the fall in industrial demand may persist in upcoming months.”
Natural gas stocks are 22.5 percent higher than the estimated five-year average.
On the supply side, producers are reducing activity, which impact natural gas supplies eventually.
Baker Hughes reports that only 808 rigs were working in the U.S. on April 3, which is 650 fewer than a year ago and 798 below the peak of 1,606 Sept. 12, 2008. Approximately 80 percent of the drilling rigs explore for natural gas and only 20 percent for crude oil. It will take awhile for production figures to fall when compared to previous years, because natural gas production has risen significantly during the past few years.
Additionally, most of the natural gas production in Texas comes from independent producers who find it more difficult to decrease production because of strong cash-flow needs.
And note that i am assuming an average price of $3/mcf for ng for the next ten years in arriving at my pv. get it? fact is, ng will go much higher than $3 over the next 10 years. so if $6/mcf turns out to be the real average, then pv is actually $40/share before counting unproven reserves. this is why any short position in chk at these levels is doomed to inevitable failure.
"Do the math..."
57 Tcfe of unproven reserve potential - that on top of 12 Tcfe of proven reserve. Um, "do the math" you f'ing DOPE.
"and $23/share in debt, jackass. Do the math..."
What about it? It's no more than they've had historically as a % of their equity. CLEARLY YOU DON'T HAVE THE FAINTEST CLUE HOW TO READ A BALANCE SHEET OR ANALYZE CASH FLOWS, YOU COLOSSAL DIPSHIT.
PLEASE SHORT MORE - YOU WILL LOSE YOUR A$$, TRUST ME D'BAG.