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

To: Madharry who wrote (26120)	2/22/2007 9:42:31 PM
From: Spekulatius	Read Replies (3) \| Respond to of 78673

re CHK - not much positives beyond the headline earnings number 1) Cash flow negative yet again. 2) Please note that based on CHK PV10 valuation of 10B$ and adding noncore assets of 2.8B$, the company is substantially overvalued with an EP value of 22.8B$. 3) Why more and more noncore assets? 4) Reserves per share are down YoY (18MCFE/2006 versus 18.75MCFE/2005) 5) Sharecount up increased from 400M shares to 490M shares YoY 6) Finding costs are understated. how can they have finding costs of 2MCFE when they have 2.4$/Mcfe DDA expense? This company capitalizes costs, nothing else. This is an example where the headline earnings are meaningless, IMO. Management is empire building with no regard to shareholder value, IMO. I doubt the rally will hold.