Arbs on the 2017 and 2018 converts ok. Possible the 2019 bonds also. But recently the 2022 and 2023 have 30% increases. Don't think that is arb related. Btw. I'm not in this for a short term trade anyway. I'm holding for long term commodity price recovery. Focus on liquidity and not short term price movement. Good luck.
No. I don't trade stocks. I buy when I think they have long term value and chances to double or more at least. I have very little AQXP. Have tons of SGEN-started buying in single digits and ave cost somewhere around 15.
I have a position in ACAD from the January pullback and 18. And another (my second biggest in size) in GHDX-that in mid twenties though so that hasn't worked out yet but think it will. Good luck.
Not only that did you see the nat gas strip today. Short end down but 2017 were mostly all up 2-3%. That is the end CHK would be hedging about now so very important that the 2017 prices stay up. Naturally think they will go even higher with production decline.
2017 now at .95. All the bonds keep trending up. Even the 2023 bonds have gone from .48 last week to .56 today. Take me home country roads!!
Sentiment: Strong Buy
No Wall. But as you say they are protecting their common. I have been so posting since I saw in March their 13F showing that they bought the converts in q4. They know wht they are doing. CHK bought the bonds while they could also. Now they are in the 90s. And for a reason. They will be paid. The whole balance sheet fix, including the missing puzzle pieces will be soon evident. Ood luck fellow longs.
That doesn't include the convertible bonds or preferred stock.. That is common stock only.
That would concern me. But that is not what happened in Q1. Also I think they would need to file form 4 or 13g if they did that.
They held 160million face of 2 issues. The 2017 and 2018 converts. It is so clear in the 13F. 116million of the 2017 and 44 million of the 2018.
The 2017 have 2 cusips. 2018 one cusip (ending in CB1). Hence at the bottom of the table there are 6 lines for the converts with 3 different issues for 2 bonds.166million of the 2017 converts and 44million of the 2018 coverts.
Let me know if you need further clarification.
Think it could be part of exchange secured debt which is coming. No dilution. If dilution and they add so much to there holdings, I will also.
Yes. the bottom are the convert bonds. Shares were 62mill. BTW they also bought a ton of the preferred not listed on 13F.
Also the only bonds listed are the converts. Regular bonds need not be listed-only stock-equity based investments. They probably own other bonds also.
Yes. It was as of 3-31-2016. The first convertible listed (cusip ending in CB1) is the 2018 convert. So they owned 44million of the 2018 and 116million of the 2017. The 2017 have 2 cusips-the last for items on the 13F table-116million of those.
Last point. Sure chk could have used the line of credit to retire ALL of the 2017 debt. But that would have been suicidal. They will use some probably in the future but need to keep as much liquidity as possible. they are chipping away from all angles-balancing and managing best they can.
RE:2018 converts. Southeastern held 54 million par at 3-31-16. The 2 swaps since then only had 18mill of the 2018 bonds swapped. That tells me that Southeastern did not participate in at least the 2018 swap.
At 3-31 they help 103million of the 2017 converts. I don't think they participated in that swap either as the first swap was for only 81million (why would they do a partial swap?) and this swap only included 90million of the 2017 converts (again why a partial?).
That is why I do not think Southeastern was involved and therefore they still own over 160mill of these issues.
I think this is really good for long term share price appreciation-albeit slightly diluted. Good luck fellow longs.