Chesapeake Energy Corporation Message Board
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CHK has debt of $22 per share
Not good. Cut the Ceo compensation.
Possible Greek Bankruptcy Tomorrow-
Once again...have to go thru 'accounting'...Now remember, there's the liability side of the ledger...and the asset side (gotta net them out to find the NET VALUE).
***it’s sitting on more than $50 billion in assets ...go figure out what that is, per share.
IF YOU NET THEM OUT...you come up with about $10 Billion...AND RIGHT NOW, that's actually the listed market cap of the stock...at current prices (but given the market cap and the fact that it's selling for about 0.6 times book...tells me it's UNDERVALUED relative to many others....APC is at a 1.6 times book.)
But yes, they have some short term issues...but if they wanted to, they could just sell assets and pay off ALL the debt...and then there would be no 'covenant stuff', which is tied to debt...I wish they'd sell lots of assets and just climb out from under the debt...and go foreward as a 'reg' company...plain vanilla...
BUT NET NET...worth $10 Billion, free of debt.- 3 Replies to h5n1eric
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They have a tangible book value of $16B...once the sales are complete they will pay the $3B in debt down...and the value of the assets will probably not drop much, but the LT debt on the books will drop under $10B by the end of 2012...tangible book value should rise above $17B by the end of 2012...and at these prices...there is 70% upside just to get to tangible book
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SEC filings from CHK indicate they think their worth is $21 to $23/share.
So at this point you have a value of $1 to $2 a share if they can keep going and actually sell everything they said at the price they want.
Not likely and too many lawsuits already.
CEO must go. -
Evertbody seems to forget about a dog call Ford that was way over leveraged, but lived through a great down turn, way because it needed the debt to turn its self around while two other companies need government bail outs...
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world over, everyone including home owners have 20-100% debt.
count yourself lucky if you don't have 100% debt. -
22 minus 15.60 doesn't make for a good stock price....
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