Discussion in 'Stocks' started by TT1, Oct 9, 2008.
Down 15% today..... trading 18.88 Off from high of 74 July, 2nd!!!!
Probably margin calls on CEO McClendon. He bought over 9million shares in the past year at a much higher price
Aubrey's stock position is not the issue.
CHK is SUPER leveraged, ( check their miniscule cash position ) and with the credit markets "frozen" are unable to re-finance their debt . . . My guess is that the market place smells that they are in trouble, and at the very least will have to make yet another Secondary offering.
APC Anadarko I think is in the same boat! Down 9% today
Rumors of T. Boone Pickens liquidating a HF.
Entire sector got creamed today.
cramer was so bullish on this a few months ago..lol
My understanding is that their debt is not due until 2013. They have massive cash flow and the ability to defer expenses if they get in a bind.
I remember trading this name when it was at $75 just three months ago. I had seriously thought about plunging big into this name when it dropped into the 30s as I felt it was one of the best names in the energy sector. Glad I stayed away.
Still, this would be one of the first stocks I buy if/when we rally.
The reason they are heading down is also the spot price of nat gas that is in the $6.75/mmbtu range today. This is a low price. Also as oil keeps trending down will close the spread and put downward pressure on nat gas also.
I guess we wont be seeing any more Pickins Plan or Aubreys CNG TV ads...
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