I AGREE ! I can't believe that so many weak kneed ninnies bailed at such a high volume to cause the SP to drop as much as it did today! It was one ANAL-yst downgrade, based on WHAT ? ! It is just an ANAL-yst OPINION !
CHK had higher income than expected in their last report, they sold BILLIONS of dollars of assets to lower debt, they are negotiating higher interest bonds to replace them with lower interest bonds, the price of NG has been steadily rising towards 16 month highs, and they are about to announce a NEW CEO to replace the controversial, outgoing Aubrey McClendon. All IS GOOD ! The last ANAL-yst rating on 1-29-2013 was by Stifel Nicolaus when they gave CHK an UPGRADE from HOLD to A "BUY" !! With what I know about CHK's current progress and status, I would take the opinion of the UPGRADE in January over the downgrade yesterday by an ANAL-yst who was probably paid by a hedge fund with a large short position !
The people who sold today blew it, and I'm still all in and waiting for the announcement of who the new CEO is going to be, and the next Earning Report, which I expect to show a continuation of HIGHER INCOME !
Good luck to all of the intelligent and steady long shareholders !
Just nibbled some more! My two cents is this is a gift, just because some Analist drops his price target everyone sells, lol. Doesn't anyone get the ANALysts yet, they don't know jack! In any even, I just bought more after hours, Nat gas IMHO is going to $4.25 short term!
Actually, CHK hedged gas at $3mcf and the price is now close to $4 mcf, so CHK's revenue is going to be 1/3 less had they not made the stupid decision to hedge natural gas at $3. Also, prices in the company projections on the value of leases is way off. CHK sold leases for $1 billion that they expected were worth triple that price. Hess sold leases in an area that CHK is marketing that also were sold for about 1/3 of the value Chesapeake is projecting.