Ok CHK's quarterly results where less than good, and the shares of CHK that had gained more than 6 % today are now down as much in the aftermarket, but what about CHKR ?
Well the shares have lost from their high of near US$ 40 to about 24 and change today which would still give a nice yield of close to 12% and here is the question !
What is the next distribution going to be ?
Check this out :
CHKR shares went public in November at 19 than paid their first distribution at 58c - keeping in mind the price for natural gas which makes more than 60 % of the income of CHKR fell from Nov.2011 to December 13 by about 23 % - than next payout was on February 15 with 73c and again natural gas was down about 30 % - now I do not know how but the distribution of CHKR seems to go up with falling gas prices, how very wonderful !!
It seems that someone in the company has a magic wand to turn falling gas prices into higher profits,.. so nice !!
And given that gas prices have again fallen by 25 % + I would assume that the next distribution in May should be 1US$ or better ?
And than so many adults do no longer believe in fairy tales - the tooth fairy or miracles -
In my very humble opinion something does not seem right here
what do you think ?
Disclosure: I am long CHKR.
Additional disclosure: I am long CHKR and I am expecting further downside once distributions fall with the falling gas price,