Buyout is very very slim New CEO is getting paid really BIG money to be CEO. If there is a buyout his own job goes away. He is young and wants to take in several years of this BIG pay. He will convince the BOD that there is more value staying as CHK and working down the debt load. He will do what is in his BEST interest
The CEO doesn't control this company. Control of it rests in the hands of the board of directors and they are the ones that decide such things.
Currently the board is a bunch of directors that have been brought on board by both Carl Icahn and Mason Hawkins. So guess who actually will decide important issues.
Rest assured that if the right offer comes along this company is sold.
The new CEO is not young and is not in it to take a paycheck. he was well compensated to leave APC and his money comes with a fast turnaround of CHK. Should there be a buyout he will receive much more compensation than any salary and bonus.
Pray that Ichan stays involved and you will be rewarded because he will hold management to the fire. Should he lose interest, you should to.
Sentiment: Strong Buy
Sure, I'll sell my shares for $40 !
"IF" the deal is offered and accepted before the end of the year, and we'll get the money before the end of the second quarter of 2014 !
Sentiment: Strong Buy
Interesting to read SE Managements letter to CHK again, knowing what we know now , this was written May of 2012
" ..........................3. The last point may be taken out of context, but is important: we urge the
board to be open to any offers to acquire the whole company. We
acknowledge that today's low market price is far below the company's net
asset value per share and would not encourage any action that would
generate a lowball bid vs. this NAV. We recognize the dangers of opening
such conversations which can sometime put a company "in play" at an
inopportune time. We therefore want to make clear that we would not
support a bid which might be a large premium to today's stock price but is
meaningfully below NAV per share. However, we also don't want to use
this large price-to-value gap as an excuse to refuse discussions with any
potential acquirers who would be willing to pay a price today that
recognizes the longer term value of the company. "
It would be sold for the right price. Southeastern Asset said as much in their letter to McClendon a year and a half ago. They heavily qualified it with the right price caveat, but they would sell.
Not to many companies would be interested in CHK because of all the joint ventures. I think what is going on here today is that a number of funds that got out a couple of years ago are getting back in because of new management. The old guard has been let go and that is a good thing. JMO
Tom is correct,
Several analysts have made a similar statement.
They have said that Aury created too many complicated and/or confusing joint ventures, percentages, loans, collateral agrrements, etc.
The new CEO MAY BE ABLE to untangle some of the messes that Aubrey created, but it would take a long time to do it.
The share price is going up because investors and funds are buying back in because the writing is on the wall of how profitable this company is going to be.
Sentiment: Strong Buy
The joint ventures are not an impediment to a buy-out. Obviously you do not understand the oil industry. A good percentage of wells are drilled with others. I own 1-2% of 22 wells drilled with Noble Energy.
Most oil and gas drillers like to share the cost of drilling and developing wells. Who do you think are CHK's partners in drilling wells and joint ventures? Some of the names are Statoil and Cnocc, some of the largest energy company's in the world.
I do not see a sale but I see other companies entering into more joint ventures with CHK. I could be wrong, but Carl Icahn invests in companies to make them over and sell them at higher prices. He does not invest for 10-20 years like Warren Buffet. Since Carl owns 10% of CHK and Southeastern Asset Management owns 15% of the company, we are owners that invested not to hold for 10-20 years but to make an investment and eventually sell it for a good profit.
I think you are wrong and these two investors are right about CHK. It is being reorganized over the next couple of years for a sale at a much higher price.