I don't believe CHK would be acquired by another company, no matter how low the stock price.
Why would an acquirer be willing to assume CHK's massive debt and other liabilities?
It is more likely , and much less risky, for interested groups to buy CHK assets during an organized bankruptcy asset liquidation proceeding.
Next year's calendar is filled with trial dates for CHK to defend itself against previous royalty payment claims.
I imagine the cost to defend, plus any judgments awarded, is materially significant.
The stock is trading as though CHK may not be able to continue its business operations. My guess is that there is currently a 50-50 chance CHK can survive. If nat gas and oil prices remain where they are, or decline, then CHK's operating losses would likely force the company to declare bankruptcy. The current $2 billion company cash reserves may quickly be absorbed by operational losses. I doubt CHK (or other nat gas-oil cos ) will be able to tap into their credit lines, the lenders will not permit this. If nat gas and oil prices rise, then all is fine and CHK likely achieves a $25 or higher share price.
back-bay-professor did not invest "another half million dollars" . I doubt he could scratch up enough cash to buy 100 shares of Verizon. But, on the internet anyone may pretend to be a high roller big time investor.
On the call the CEO would not even acknowledge $80 oil, and spent the entire call pontificating about Encata's growth projections (based on $90 or better oil prices).. Meanwhile, the rest of the world is aware that $60, $50, $40 oil prices are a real possibility. It wasn't that long ago that crude oil was $30 a barrel.
Rather than over paying for oil asset,s Encata probably should have stuck to the business which the company knows well, which is natural gas. Beware of ECA here, I do not believe company management is prepared for significantly lower oil prices.
During the quarterly review conference call management referred to their plannings and assumptions for $90 oil. They barely acknowledged $85 or $80 oil.
Today oil is $75 and acting like it is headed to the $60's. Not long ago oil was in the $30's., yet ECA management doesn't seem to be prepared for lower oil prices. Beware.
The recent $1.40 shares were a closed, private placement offering. Those new shares were never available (on the listed public exchanges).
The recent share offering was designed to help DRYS business (and its stock price). Debt payment obligation was here, so what else would you have GE do ?
What is your problem with GE? He is running the business and the company's operational results are improving.
How could you have possibly "made a lot of money" here? And at my expense ??
Yourself and several other amateurs bought your DELL shares after the buyout rumors pushed the stock price up 30%. Ever since then you guys have been whining and crying about how Mike Dell should increase his offer price. And now you've resorted to bothering the receptionist at DELL's IR department ??
I suggest you take your loss here and move on towards finding a stock with good price appreciation potential.
Hops this helps.
Mike Dell and Silverlake,. in the interest of being as a fair as possible, made their initial proposal rmandating that shares not voted would be counted as "NO" votes. This protects MD and Silveralke from future litigation.
Hoiwever, it turns out sentiment for their generous $13.65 offer was not as positive as they had anticipated.
It is ironic that the "mandatory voting" provision ended up sabotaging this buyout proposal. Next year, if Mike Dell decides to present a new buyout offer, I expect the voting provision component will be different, that is abstaining shares will not be counted as "NO" votes.