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Strategies & Market Trends : Value Investing

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To: Madharry who wrote (25594)12/23/2006 4:45:01 PM
From: Spekulatius  Read Replies (2) of 78669
 
Why i don't like CHK:
Message 22948205

This company is destroying shareholder values through their acquisitions and the dilution that goes along with it. By my calculation reserves per shares (which is one the numbers that counts most) is down by about 15% since 12/31/2005.

The numbers that CHK is putting out in their presentations about value creation by drilling are nonsense. Nobody pays 3.5$/mcfe for reserves in the ground, the correct number is more like 2.5$ or less. Even the one time earnings from smart hedging do not help.
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