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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Broken_Clock who wrote (23526)	3/10/2006 9:24:25 PM
From: Spekulatius	Read Replies (2) \| Respond to of 78957

it seems to me that Wall St. is more willing to hold companies that are hedged and are building reserves. It's not clear to me how the street will value the hedge gains that CHK will be showing in the near term future. My guess is that they will be treated as a one time event rather than operating earnings and hence CHK should still trade in lock with NG prices. That being said, i do like CHK and this they will try to benefit and buy reserves in the ground for lower prices. My guess is that gas in the ground can be had for 2$/MCFE again if weaker prices persists for a while. XEC may also be a company to watch, even though they are less hedged than CHK they have very little debt, which will allow them to lever up if they see opportunities to buy reserves.