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Gold/Mining/Energy : Chesapeake Energy CHK

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To: Razorbak who wrote (506)5/4/1999 9:13:00 AM
From: Ed Ajootian  Read Replies (1) of 726
 
Razor,

Will be interesting to see how the market responds here. Production was in fact flat to 4Q but with gas prices now so much higher than they were for 1Q this thing could still pop up on this news just as a result of folks figuring out their present cash flow run rate.

I did this on the back of an envelope and if you put a 4 multiple on it you get a stock price of about $3.75, and that's even including the 33 mm shares that the preferred is potentially convertible into.

Looking more & more that Gabor's call for $5 is not so nutty after all.
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