Carl Icahn discloses a 7.56% stake in Chesapeake Energy (CHK +1.5%) via 13D filings. Icahn: "If...

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Grandlakepolice Comments (5)
 
I feel bad for the employees. This will help shareholders but if I worked for CHK I would be scared, very scared.
25 May 2012, 04:12 PM Reply Like

dinky Comments (16)
 
This threat is interesting. I'm not sure what "actions" he might take but the comment is aimed at shareholders, and I construe it to be platform building. In other words it's part of his ultimate plan. I'm thinking he might attempt to compel the company into bankruptcy with the common shareholder getting nothing.
25 May 2012, 04:18 PM Reply Like

BEACH HOG Comments (13)
 
With Blackrock showing an increased interest of somewhere in the 4-5% range and the 13 plus percent that Southeast Asset Management already owns there is a lot of long term bets at stake here. I have a gut feeling he may have a buyer or buyers lined up to purchase this operation. Other people have quoted the breakup value as in the $28 range and my memory may be wrong on the exact number, but anything below that price will be a good value for new owners.

At this point I just hope to shorten my loss as I am in through purchases in the $24-25.50 range. $19-$20 a share look better than where we were just a few days ago. I am in it now to get whatever uptick I can and continue to move my stop loss floor up to minimize any downward turn in the price at this point.

Hope we can all find a way to salvage our investments.
25 May 2012, 05:05 PM Reply Like

bigazul Comments (915)
 
Except that debt is, for the most part, tied to holdings and/or production. In a world of massive de-leveraging, who would be willing?
25 May 2012, 05:20 PM Reply Like

tommangano2000 Comments (13)
 
Natural Gas is near an historic low. I do not believe the current price for natural gas will remain at his level much longer. A potential suitor of CHK would have the same conviction as I. IMO there exists many deep pocketed companies, or private fund groups, who would be more than slightly interested in owning CHK, even with the debt load which would in essence become proportional with a Natural Gas price increase.
25 May 2012, 06:12 PM Reply Like

srspa77 Comments (323)
 
I love Aubrey! I've shorted him since 2009!
25 May 2012, 06:13 PM Reply Like

westelk Comments (129)
 
NG storage is 40% above the 5 year average. Even if some wells get shut, many producers have to produce to maintain cash flow, no matter what the price. As more and more caverns get filled, the question becomes who buys the gas and at what price?

Icahn wins, but Icahn has also taken some hits over the years. If NG prices sink back to $2 (or less) as the supply-demand scenario works out, Icahn could find himself owning a bunch of shares in a complex CH 11 case. While he is making noise about the common, I would guess he has accumulated a bunch of the senior debt. In the end the debt holders call the shots, and common holders get screwed.
25 May 2012, 06:45 PM Reply Like

TruffelPig Comments (3256)
 
If the sharks move in I swim away.
25 May 2012, 10:09 PM Reply Like

Wall Street Smart Comments (472)
 
Carl Icahn is no warren Buffet. last time he increased his stake in Chesapeake to this level, he sold a substantial portion when the stock rallied. He is no long term investor like Buffet is but more of a short term trader.
26 May 2012, 08:55 AM Reply Like

buyitcheap Comments (1817)
 
This will be a big clash of egos to be sure... I look forward to the fight.

Icahn did wonders at Biogen....

Long CHK and CHKR
26 May 2012, 03:07 PM Reply Like

Tack Comments (9262)
 
Icahn and Blackrock just demonstrating, yet again, how much money can be made by buying into hysteria. They'll clean up.
27 May 2012, 01:43 PM Reply Like

Whitehawk Comments (2802)
 
A cheap strangle might be worth a pitch here, with proper timing on the price (as cheap as possible, though CHK puts are not cheap). The question is how soon any of these asset sales might take place. My guess is not soon (he still hasn't found a buyer for CVI yet either), and Icahn may be looking at a longer hold and more acid stomach than he bargained for.
27 May 2012, 06:51 PM Reply Like