Stop being traders and be investors!!!I have owned the stock for over three years. I plan on owning it for many more. Natural gas will become the new crude oil. You have all read the reports that chk is working with auto makers to run cars on NG. The cost is about $1.25 a gallon or so, with little reduction in economy. More electric power will be produced through wind and solar, so NG can be used in our cars. Forget CNBC and all the news shows, and look into the future and make a furtune.
This guy has been buying stock for the 10 years I've owned this stock (and way before that) and he hasn't been wrong yet. However, short term, I've seen the stock dip below, sometimes far below, some of his buy points many times. Of course, he then buys more.
BTW, this stock is always very volatile around triple witching. I won't be suprised to see them take this down to $60 today.
<< LOL, you want to use historical ratios to Oil in the current Oil market! You must have some good drugs sir. Just cause you want it to be so, doesn't make it so. The P/E for trailing twelve is 36 or so. If you want to try to predict the future for an energy stock earnings...good luck with that. Historically, the ttm P/E has been 17 or less. It is more than twice that number right now. >>
I agree that everyone quoting the historical price relationship b/w oil and NG and trading simply on it converging to historical "norms" is not real bright. There is no reason this relationship can't change by some degree.
That said, you need to stop quoting bunk P/E numbers. The only relevant E is adjusted for non-cash hedge losses that simply won't ever be realized. On that basis, ttm is closer to 20 than mid-30's, and P/E based on 2008 E is right at 16 (and the last 1/2 2008 E estimates are probably low).
Quit using bunk numbers to back up your weakly supported position.
NG is not Oil. NG went up to $15 and came back down to $6. NG is no where near its all time high and will come back down again. Oil on the other hand has continued to climb up and has never come close to the $40 it was just a few years ago. The relationship is not the same anymore.
LOL, you want to use historical ratios to Oil in the current Oil market! You must have some good drugs sir. Just cause you want it to be so, doesn't make it so. The P/E for trailing twelve is 36 or so. If you want to try to predict the future for an energy stock earnings...good luck with that. Historically, the ttm P/E has been 17 or less. It is more than twice that number right now. You people sound exactly like I did a couple years ago. I learned from that. You should do some research and learn as well. Sure, you can be a long term investor and you wont lose any money over the long haul, yippie! Or, you can realize that a pullback is inevitable, take profits now, and buyback the same number of shares at a much lower price and maximize your profites. It is up to you. If you bought in the twenties 3 years ago and had that attititude when it was at $37, you would be looking good today at $64. Or, you could have sold at $37 and bought almost twice the number of shares back in the low $20's on the dip that occured within a couple of months of the high. Double the shares and you would have tripled over the next two years. That is a 600% gain as opposed to the less than 80% gain you would be temporarily enjoying today. It is your choice though. I am not pooh-poohing CHK. In previous postings I have said that I like the company, just not the price or the P/E. I don't care what they discover. I have heard it before. It has run like crazy, it is normal to expect a pullback. if you trade it right you maximize your gains. if you don't want to do that...your choice.
Good luck to all.
Well that was refreshing someone with their head out of their (*&()*^ FYI for u CHK just came out with a magazine they will be publishing devoted to the Hanesville play and they have fantastic food at the ole cafeteria man nice place
You don't have a clue. NG is trading way below it's traditional 1/6th price of oil and can be expected to return to historic norms. Also, natural gas consumption is rising dramatically this year, inventories are down, imports of liquified NG aren't available (see recent NY Times article on Chenier, and Canada (which supplies 15% of our gas)is suffering increased demand and declining production. Also, if the US ever decides to do something about global warming (as both McCain and Obama say they will), natural gas demand will soar because its the cleanest fuel. Also, horizontal drilling techniques that worked so well for CHK in the Barnett Shale field will now be applied to the Haynesville Shale field which, incidentally, is very close to Barnett and very similar in geologic formation.
This stock is a must buy on any downturn. Picked up another 250 sh today.
What if the Sun doesn't rise? What if the world ends tomorrow? What if someone invents a way to use water to run cars? What if Lebanon declares war on New York? What if Oil turns into water? What if no one ever wakes up? I've been INVESTED in CHK since it was $4.00 (27,000 shares) and every time this stock pulls back 3%, 4 %, or 5%, all the hand wringers and What If'ers come out. Grow up. The entire energy sector has been on a huge run, and if it pulls back even 10%, it's just another buying opportunity. Try and act like Investors in a great company and not a bunch of crybabys boo hooing if your stock doesn't go up every day! Give me a break!