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

To: Telemarker who wrote (589)	12/14/1999 9:35:00 PM
From: Ed Ajootian	Read Replies (1) \| Respond to of 726

Hi Telemarker, The preferred is a great investment in my view, since the common has somewhat limited potential to appreciate. There has been a secular rotation out of the energy stocks by the overall market and I can't think of what sort of event would cause this mood shift to swing back to where it was. They are covering the interest at a rate of about 2.5 x with their EBITDA so there is little downside risk for the preferred at this time. In about 5 months the preferred shareholders will be getting paid 5 quarterly dividend payments, which represents a significant annualized return from the current quote assuming the value of the preferred does not go down by the amount of the payment when they go ex-dividend. In any event it is silly to compare these two investments. One is an apple and one is an orange. They coincidentally happen to be in the same company. Looking to go to Utah next week for some skiing. Will be the first time on the boards this year -- working like a dog. Regards!