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Chesapeake's (CHK -0.4%) largest shareholder urges the company to remain open to potential...

Chesapeake's (CHK -0.4%) largest shareholder urges the company to remain open to potential acquisition offers in the wake of Aubrey McClendon's troubles. Southeast Asset Management advises CHK not to use the current price-to-value gap "as an excuse to refuse discussions with any potential acquirers who would be willing to pay a price today that recognizes the longer term value of the company."
Comments (21)
  • gracie and pete
    , contributor
    Comments (6) | Send Message
     
    They shouldn't take less than $39 a share should they decide to sell.
    7 May 2012, 02:57 PM Reply Like
  • tomatferndale@hotmail.com
    , contributor
    Comments (2) | Send Message
     
    I support Southeast 100%. It is time for shareholders to make the calls and replace the BOD and Aubrey if they do not agree to do this.
    7 May 2012, 02:59 PM Reply Like
  • Mike Maher
    , contributor
    Comments (2482) | Send Message
     
    Selling with natural gas a few percent off the lowest prices in decades seems like a great way to regret selling in 5 years. Southern Asset Management is likely just hoping for someone to make a bid and bail them out of a losing position.
    7 May 2012, 03:03 PM Reply Like
  • fmarone
    , contributor
    Comments (14) | Send Message
     
    SouthEast can make suggestions. The value has two meaningful components, namely asset value and future earnings. This could be interesting!
    7 May 2012, 03:07 PM Reply Like
  • MB
    , contributor
    Comments (28) | Send Message
     
    I think a lot of their assets are tied up in JV and VPP commitments. Who would want to come in and assume all of their terrible long term obligations?
    7 May 2012, 04:50 PM Reply Like
  • wald22
    , contributor
    Comments (179) | Send Message
     
    CHK's reliance on long term commitments and obligations to lease holders, JV or VPP commitments is much like people rely on stocks, bonds, real estate for wealth accumulation. None of these investment vehicles bring about true wealth creation or economic growth, for all depend on bank credit to finance the fool who buys from the present fool. There is nothing like watching billions of people speculators all trying to unload to a greater fool only to find they are the fool the last fool unloaded to. Who in his right mind is going to assume CHK's long term comittments and obligations? CHK still needs $10B just to get to the end of this year. Their credit has been downgraded. They could issue more shares at the expense of present shareholders. This stock is much like a mining stock digging an ever deeper debt hole to drill in order to hold the leases through production that does not pay the bills. Most shareholders will blame AM the CEO, but should the truth ever be told, it is our FED banking system of creditism out of thin air that is destroying and obliterating US$ credit units that make up the value of our nest eggs we call dolllllllars.
    7 May 2012, 06:44 PM Reply Like
  • richardx
    , contributor
    Comments (122) | Send Message
     
    I only hold a small share of CHL (1000) but I will gladly givemy votes to southeast to do ANYTHING with this company that raises the value to where it should be and quickly.
    7 May 2012, 07:23 PM Reply Like
  • jake7
    , contributor
    Comments (31) | Send Message
     
    This board and CEO isn't getting the job done...time for
    some big changes....or simply put the whole company
    on the auction block...then we will know what the real
    value is...This board has no shame.
    7 May 2012, 07:40 PM Reply Like
  • Todd Johnson
    , contributor
    Comments (6952) | Send Message
     
    $CHK Aub should be given first notice on this for his hedge fund along with $SD Ward.
    7 May 2012, 08:15 PM Reply Like
  • rjj1960
    , contributor
    Comments (1359) | Send Message
     
    Wait for Aubrey to award himself 100 million stock options at .25 cents. I guess that would be a sign, you think???
    7 May 2012, 08:31 PM Reply Like
  • Todd Johnson
    , contributor
    Comments (6952) | Send Message
     
    $CHK, $SD, $GE That would do it....and I don't see any reason why it wouldn't happen. I'm only waiting for Aubrey to beat Jack Welch out for how much they can pilfer from the company.TJ
    7 May 2012, 08:43 PM Reply Like
  • bobby fibonacci
    , contributor
    Comments (10) | Send Message
     
    How did Southeastern acquire such a large stake in this Enron-like disaster without finding these issues out through due diligence? It boggles the mind, that is their job.
    7 May 2012, 09:18 PM Reply Like
  • TippingPoint
    , contributor
    Comments (147) | Send Message
     
    Money managers can be dopes too.
    7 May 2012, 09:56 PM Reply Like
  • westelk
    , contributor
    Comments (231) | Send Message
     
    Given CHK's enormous debt, anyone other than a very cash rich company would be silly to buy CHK in the teens. Gas bubbles tend to last a long time--the last one began under Reagan and lasted into Bush 2--a period of almost two decades. CHK was for sale during that period when it fell under $1--no takers and was perilously close to Chapter 11.

     

    I don't expect it to fall quite that far this time, but unless the NG bubble bursts quickly (hard to see with so many outfits having to produce more and more to maintain cash flows through declining prices), it is hard to see NG prices substantially improving in the short term.
    7 May 2012, 09:19 PM Reply Like
  • TruffelPig
    , contributor
    Comments (4059) | Send Message
     
    I bought CHK Friday because they have huge oil reserves. Forget the nat gas - the oil is coming.
    7 May 2012, 09:37 PM Reply Like
  • TippingPoint
    , contributor
    Comments (147) | Send Message
     
    Yeah, but the word is that they are having to sell the valuable oil assets (like in the Permian) in order to raise cash.
    7 May 2012, 09:53 PM Reply Like
  • TruffelPig
    , contributor
    Comments (4059) | Send Message
     
    If the nat gas price recovers a bit I do not see this coming.
    7 May 2012, 10:02 PM Reply Like
  • wald22
    , contributor
    Comments (179) | Send Message
     
    The problem with natural gas is that it comes as a by product of oil, thus it must be produced or flared. The way I see it, the natural gas market is likely to stay saturated for a long long time. In many parts of the world do to lack of transportation pipes and storage facilities it gets burned. That is even true in N. Dakota. By the time we build the facilities to make it into a liquid to export it, the middle east will be doing the same. If I was Obama I would set up a program to subsidize natural gas use end users who switch to natural gas for the first year and pay for it by putting a tax on oil.
    7 May 2012, 10:48 PM Reply Like
  • richardx
    , contributor
    Comments (122) | Send Message
     
    You know that will never happen under Obama. Just imagine where we will be if he wins re-election??
    8 May 2012, 09:15 AM Reply Like
  • chicks
    , contributor
    Comments (6) | Send Message
     
    McClendon's fed at the trough more than once. How many American CEOs put their stamp collection up for collateral so their interest in the company's wells doesn't revert back to where it belongs in a public company - in the hands of the stockholders.
    I believe this is why SD has performed so poorly this week. SD’s Chairman, a CHK alum, worked his way through the ropes at Chesapeake before taking the reins at SD. To my knowledge, there has not yet been a “founders Program” at Sandhill.
    8 May 2012, 01:52 AM Reply Like
  • TruffelPig
    , contributor
    Comments (4059) | Send Message
     
    There was a well program but it was stopped years ago. SD much better in that aspect.
    8 May 2012, 08:08 AM Reply Like
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