What makes you think so ?
Just because an asset was worth X amount a year ago, or even one month ago, does not mean the asset's value can't decline, and continue to decline.
What you think is worth $15 may in reality only be worth $5 (or less).
Hope this helps.
I never accused any CHK management of "lying". The fact of the matter is that the continuing decline of oil prices makes it just about impossible for energy companies to make accurate predictions, or provide reasonably accurate guidance, about their businesses operational losses.
Tomorrow's CHK results will likely shock the naive stock buyers who have been relying on CHK's past numbers, past asset values etc....
At one time CHK may have had $3 billion cash reserves. My expectation is that (tomorrow) CHK will reveal cash reserves are now less than $1 billion.
Too many of you here are looking in the rear view mirror and using numbers and or results from a time when oil prices were significantly higher. The reality, as proven by recent business results reported by other public companies, is that the operational losses happening out there right now are staggering.
Just what "due diligence" do you believe you have done ? Oil and gas is a dynamic industry with asset valuations constantly changing. It's quite possible that when CHK reports their business results the operational losses will be staggering, the former cash reserves exhausted, and the guidance going forward extremely bleak. The above is possible as is a bankruptcy filing.
I doubt your "due diligence" has prepared you for current and future CHK business results and, or stock price. Looking at past results and numbers rarely does.
Hope this helps.
Icahn does not have the power to force Haliburton or Exxon to buy CHK. I don't believe he even owns shares in those companies.
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.