Speaking from experience frankfrank?
Your posts are those of someone who knows little about the stock market and even less about business.
Based on Alcoa's recent recorded business results I do not characterize any of the company's business lines as "strong".
Upstream suffers from declining commodity prices, as well as competition from China and many other upstream production suppliers.
AA's downstream business suffers from having many competitors. For example, to win automotive or aerospace industry supply contracts, AA offers such low prices that the profit margins are not good.
I agree, AA can likely sell off some assets, pay down debt, and likely avoid having to file for bankruptcy protection from creditors.
But that does not mean what remains of the company will not have a $3 stock price.
At this time what should happen is Alcoa's board of directors fire KK and immediately cancel his absurd plan for a division of the company. The next CEO should then begin selling assets and do what he can to make AA
a less leveraged, smaller company.
Stop listening to Klaus and start paying attention to Alcoa's results. The numbers are not good. declining revenues, little to no profitability. The company has massive debt obligations.
None of Alcoa's product lines have much organic growth. None of Alcoa's product lines have especially good margins or pricing power.
The planned split is just adding doubt about Alcoa's future. Investors do not understand the logic behind adding expenses and losing the current business synergies gained from one company rather than two.
Sorry to be so negative, but I am unable to find one especially positive of AA's business.
Actually, considering the size of AA's debt obligations, I am surprised the stock price is as high as it is right now.
Considering Alcoa's massive debt obligation, combined with the company's ongoing operational business losses, I doubt very much that AA will be maintaining its dividend.
Get yourself a different broker.
CHK's debt is so massive that even $50 oil, nearly double what the price is today, would still not be enough for CHK to pay off its debt obligations.
CHK stock price is headed to $3, then $2, then a prolonged stay trading at around $1, then a filing for bankruptcy protection from creditors.
Aren't you the guy who was on here, a few months back at least, babbling on about how you and your neighbors in Ohio know how "valuable CHK's land assets are and how much CHK stock you owned, and that CHK stock price will rise much higher ?
There is no "credit revolver". You should stop listening to CHK management. If CHK tried to borrow money the banks would deny the request.
I am not a "basher" but there is not much to be optimistic about regarding Alcoa.
Considering the company's massive amount of debt obligations, combined with decreasing revenues, little to no profitability etc... I am surprised the stock price has held up as well as it has.
Good luck to the longs , but for me this one is too high priced for a debt laden deteriorating business. If the AA Board of Directors expelled Klaus Kleinfeld, cancelled the proposed split, and hired a new guy to focus on reducing debt, I would consider buying some AA stock.
I think $1 to $1.50 per share is the price where most short positions would sensibly buy shares back (cover). At about $1.25 per share negative news such as business operation losses, lower oil or NG prices etc... would likely no longer move the stock price lower. At $1.25 CHK becomes a pure BK speculation play, all or nothing, and at that point there are better risk-reward short positions available.
Many publicly held bankruptcy candidates trade in the .80 cent to $1.25 price range for months, or even years, while management does what it can to avoid filing for bankruptcy protection from creditors.
I expect this will be the case for CHK shares as well. All factors considered I am very surprised CHK stock price has held up as well as it has, here now nearly $5 per share. But, as the operational losses are recorded, with no reasonable outlook for profitability, that sub $2 price range may happen relatively soon.
AA stock price is about $9 per share (and trending lower).
Which stock exchange is it that has a market price of "$15" ?
Mostly these type meetings are about Arab sheiks paying exotic young women for bedroom play.
I think the Arab states are aiming to get oil priced about $25 per barrel, which would effectively knock out of business at least half of the USA oil related companies.
Once the competition is out of the picture Saudi Arabia and other Arab states can resume their dominant position and allow oil prices to move higher.
At $5 per share CHK market cap of about $3 billion.
Company has about $11 billion debt.
Company land assets worth about $4 billion.
Company cash is about $1.5 billion.
CHK has no more collateral. Banks will not loan and, or, permit use of a previously authorized credit line, without the borrower providing adequate collateral.