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Gold/Mining/Energy : Chesapeake Energy CHK -- Ignore unavailable to you. Want to Upgrade?

To: Razorbak who wrote (517)	6/11/1999 4:32:00 PM
From: Gabor	Read Replies (1) \| Respond to of 726

5.5-6.0 this year

To: Razorbak who wrote (517)	6/13/1999 2:37:00 PM
From: Ed Ajootian	Read Replies (1) \| Respond to of 726

Razor, Not really following this stock that closely even though I own a bit of the preferred. The preferred is convertible at $7 and is potentially equal to 33mm shares of common. That would seem to be in an impenetrable ceiling on the stock price. Even for the stock to get to $7 is stretching it IMO. When you are staring down the barrel of $1 bil. of debt there is not a whole lot you can do to grow an O&G company. This company is presently being valued at about the same as Meridian Resources (TMR). That company has just hit a huge gas well which could dramatically increase its reserves, plus they have a lot of oil production. With the Venezuela oil industry about to go on strike, I want more exposure to oil prices. If the current oil futures strip has it right, oil prices will exceed $18 for the rest of this millennium. I believe if gas prices go as nutty as they are currently being predicted to this winter, CHK could get to $5. But I feel TMR has a better shot at doubling than CHK at this time. Plus you get more bang for your buck since TMR is fully marginable.