Today's analyst upgrade is likely a good opportunity to sell CHK shares into temporary share price strength. Hope this helps.
Obviously, if oil and, or, natural gas prices move higher, then CHK would have the opportunity for profitable operations and just about all factors influencing the stock price will turn positive.
But there is no indication, evidence, or even a reason that the decline in oil or natural gas prices will reverse course anytime soon. It's a real possibility that oil, for example, could move down to the $40, $30, $20, or even less price per barrel.
Several posters here do not understand that CHK's business operations are a dynamic situation, Specifically, as the days and weeks pass by, factors such as business operational losses and cash reserves deteriorate. Rather than look at numbers of a few months ago, stock holders would be better served to consider the negative effects of the steadily declining oil and gas prices (to CHK and other highly leveraged industry companies).
Oil and natural gas prices have been in a steady decline, so CHK will definitely be reporting dismal operating results.
If you are searching for a catalyst that might bring buying interest to the stock, I believe that will come if and when CHK announces some significant asset sales. At this time it is widely expected that CHK is on a path towards filing for bankruptcy protection, If CHK management can raise money from asset sales, and either pay down debt or at least give evidence the company will absorb operational losses and stay in business, that news would stabilize the stock price. Hope this helps.
Before calling other posters "stupid" should probably learn the correct usage (and spelling) of the word "too". Hope this helps.
In a declining commodity market CHK's land assets are worth less each day.
Also, CHK does not have near the 2.9 billion cash reserves you posted about.
As oil and natural gas prices decline CHK suffers losses from operations and lits ability to pay off its debt diminishes.
Finally, if oil and natural gas prices continue to decline then many highly leveraged company's (such as CHK) may need to file for bankruptcy protection from creditors.
The above is what you are missing. Hope this helps.
Yes, for a short position, money is made when the buy price is below the sale price.
If someone "sold short" at $20 and then buys (covers his position) at $15, he makes $5.
What are you babbling about ?
Saudi Arabia would love to see USA oil producers go out of business, so look for lower and lower crude prices. $40? $30?? $20??? The Arab States can afford to produce no matter how low the price. Unfortunately, CHK and other USA companies do not have that luxury.
"shorts" have nothing to do with the price of oil and, or, CHK's stock price. It is all about supply and demand fundamentals. Hope this helps.
Can't say I have heard (or read) any analysts "pounding the table" recommending AA as a buy.
Jim Cramer often mentions Alcoa, I think because he has been around awhile and remembers Alcoa's business to be a good barometer of worldwide economic conditions. This and the fact that KK is willing to be interviewed by him.
Just who is it that you think would be "buying the pieces" now ?
You post as though it is easy to sell an asset. It's not, especially when oil and NG gas prices are declining. To find a buyer for assets takes time, and I guarantee you that trying to sell company assets has been Lawler's top priority since he first arrived at CHK.
Regardless, in any application for bankruptcy, the applicant must prove efforts thave been made to sell assets and, or raised cash.
"force a sale"?
Icahn could not "force" any company to buy CHK. At best he could offer to help Lawler figure out how to sell some of CHK's assets so that the company may raise enough cash to pay down some debt and continue operating.
My guess is that Icahn is planning to take the CHK loss, even the total loss which would come from a CHK bankruptcy filing, and use it as a tax credit (against capital gains he has from other investments).
Icahn just made a mistake betting that oil and natural gas prices would reach higher levels. Over his career he has made several investing mistakes, but enough big winners to make the losing investments inconsequential.
It is highly unlikely that any oil and gas industry company is wiling to assume CHK's massive debt and liabilities. Even the majors such as Exxon or Chevron would not want to hurt their balance sheets with such a large amount of debt.
So, rather than a sale of the entire company, CHK mabnagement' most sensible option is to sell off company assets, one at a time. This is what CHK management is doing. If they can sell a significant number of assets, and if oil and, or, natural gas prices rise a bit (or at least stop decreasing ) then maybe CHK can avoid having to file for bankruptcy protection.
I know CHK has assets, but the value of same is declining each day. Regarding Exxon or Chevron having an interest to buy CHK assets, that may be true, but not at the expense and risk of assuming CHK's liabilities.
Acquiring CHK's liabilities would have a negative impact on either XOM or CVX balance sheet by nearly 50%.
There is no way either company's BOD would approve such a reckless acquisition, especially in this declining commodity price environment.
Apple Computer or Microsoft could afford to absorb CHK's massive debt, but a major oil industry company like Exxon could not.
You are not comprehending the size of CHK's debt and other liabilities. As for possible refinancing of debt, the lending industry is ice cold on lending to oil or gas related businesses.
I don't know about CHK's "extremely unique and valuable" assets. As commodity prices decline, so does the price of CHK's assets.
Regarding debt, even a company as large as Exxon could not afford to assume CHK's massive debt level. If Exxon did that, and I doubt any lender would agree to lend XOM the money to buy CHK, the company would be wrecking it's own balance sheet.
Even a super large Company like Exxon-Mobil would not want to wreck their balance sheet (by taking on CHK's massive debt).
Rather than assume CHK's liabilities, it makes more sense for companies to buy CHK's asets from a bankruptcy liquidation proceeding.
If oil and NG prices rise 25% then CHK is fine and will enjoy a much higher stock price.
Basically, if commodity prices decline CHK may be forced to file for bankruptcy protection. If commodity prices rise then CHK stock price will rise.