It will take several quarters of cost cutting to get the market to recognize the effort. There is still a very large short interest on the stock that will keep a cap on upward movement until a few good quarters are behind the company. The best thing CHK can do is improve the financials quickly and force a short squueze
CHK is not concerned about the shorts.
Six insiders have each purchased six or seven figure sums of the stock recently.
Carl Icahn has increased his holdings over the last six months.
The company management and key shareholders want to operate
CHK with an employee count that is similar to Apache and Devon.
I expect that company payroll is going to decline by 25% over the next
six months, drilling costs are going to drop and oil production is going
to go up.
I would not be surprised to see CHK sell off its oil services and drilling
companies in 2014 and another 25% of the employees will be gone at that time.
As these events take place over the next 6-12 months the shorts should
be taken care of.
Rome was not built in a day. Give the new team of executives 12-24 months.
So far they have accomplished significant steps in 6 months.