It would be discouraging to see CHK selling assets at this time because the prices would be terrible in this highly distressed market. If I thought CHK would sell in the next year I would buy the CHK-PD, more upside in a company sale and a 7.5% dividend while I wait. The best chance for appreciation in the common is when LNG starts exporting and that changes the demand side of the equation. Suppose to be this year, we will see. No love for gas and oil companies.
Thought I bought the bottom at $14 and again at $12. I intend to keep holding. I think the entire oil sector is washed out amongst ridiculous pricing and valuations. Oil stocks are a very dangerous short and I will buy more in a month when I see a bottom form. I was just too early on this one.
Buying a stock making new lows requires serious nerves and patience. I've made really good returns buying stocks that have been crushed, but eventually any recovery will be predicated on higher gas prices. $3 is good short term target and at $4 CHK will be a desirable stock. I believe a short term bottom in the stock will occur as we move to the 3rd quarter, but I have no doubt that many hedgefunds have made a killing shorting oil & gas stocks in the second quarter.
Maybe a few days early to buy but without reading the details of the UBS report, it sounds like a strong contrary indicator. 10/22 UBS initiated a buy on CHK at $22, today they lowered to a SELL.
That has to hurt. Thanks for the expert analysis #$%$.
My guess is that many money managers don't want to show oil and gas stocks in their portfolio going into quarter end, but July they will push all these stocks higher as they repurchase.
Good luck, longs. $Cash