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Strategies & Market Trends : Bankruptcy Predictor Model

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To: Razorbak who wrote (395)12/5/1999 11:54:00 AM
From: Razorbak  Read Replies (2) of 477
 
Chesapeake Energy (NYSE:CHK)

Below is an update for the 3rd quarter:

12/31/97H, Z-score = 0.76 = "Near Death" (half-year's results X 2)
12/31/98A, Z-score = <1.21> = "Near Death" (annual results)
03/31/99Q, Z-score = <1.43> = "Near Death" (quarterly results X 4)
06/30/99Q, Z-score = <0.82> = "Near Death" (quarterly results X 4)
09/30/99Q, Z-score = <0.46> = "Near Death" (quarterly results X 4)

While the absolute score is still quite low, the improving trend indicates tells me that CHK has definitely turned the corner. Nevertheless, sustainably high commodity price levels are still critical to the long term success of their turnaround.

The above is just my opinion, of course.

Razor
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