Chesapeake Energy CHK Message Board

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Gold/Mining/Energy : Chesapeake Energy CHK

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To: Aquaman who wrote (508)	5/5/1999 11:00:00 PM
From: Ed Ajootian	Read Replies (1) of 726

Aquaman, Looking very seriously at this company at this point. Just listened to the 1Q conference call and also have looked at the annual report. I believe the analysts will who follow the company have to increase earnings projections for the remaining quarters given the higher pricing. A lot of their long-term debt is callable so it is likely they will be trying to do a secondary stock offering in the late fall or winter, to raise funds to de-lever the company. The brokerage firms are gonna wanna get on Aubrey's good side in the intervening months so they can get in on the action. Ergo we should expect some upgrades in the coming months. That being said I'm leery about paying such a huge premium over the break-up value of the company. At $2 a share the stock is about $4 in excess of its break-up value (that's right -- the break-up value is currently negative). Gonna give this one a little more thought.

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