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  • Chesapeake bonds sink on new debt leeway in amended revolver [View news story]
    This analysis makes absolutely NO sense.
    IF Chesapeake was sooooo weak in this depressed oil/gas environment there is not a lender in the world that would "extract some concessions." Rather, as is happening with weak companies, credit lines are being cut or called.

    Having been a bank CEO (in a prior life), this is the sign of strength to the achievements of Lawler and the team.

    If you read between the lines, combined with the repurchase of the convertible debt, this game of chess is playing out as Lawler has strategized - and will have some very pleasant surprises.

    CHK remains the holder of the best, and largest, reserves in the US, has become the lowest cost producer, and after years in construction the pipelines will soon be connected letting CHK tap higher prices - under its new WMB favorable agreement.
    Oct 1, 2015. 11:57 AM | 6 Likes Like |Link to Comment
  • Chesapeake Energy Cuts Dividend And Staff, What Happens Next? [View article]
    A 15% cut is nothing (except to those employees). Recall that in 2012 CHK had 13,000 employees, at yearend 2014 it was near 4,500 (exact number was not given). The first 8,000 employees to be let go were not in a press release.

    Oh yeah, and there were 5,000 independent contracted land men that signed up the 22,000 sq. miles of leasehold. CHK was also running 162 rigs.

    What remains are the best and largest gas/oil plays in the U.S., covering roughly 16,000 sq. miles, and the most efficient drilling & production company, now down to roughly 20 rigs, and still with growing production.
    Sep 30, 2015. 10:58 PM | 1 Like Like |Link to Comment
  • Chesapeake Is Buying Itself Time [View article]
    You said...
    "•If interest rates rise and the dollar strengthens, that will put pressure on oil and gas prices and THE COMPANY'S DEBT LOAD."

    Why will a 1/4% increase, or any increase, have ANY pressure on CHK's debt as it is all FIXED rate, with only $1.6 billion due before 2019, and other extended maturities?

    At the annual meeting I asked Lawler what CHK was doing in the LNG export market, and his response was it was seeking ways to get more than the current market. He has pulled a lot or rabbits out of a hat, I expect he has a few more to surprise us all.

    And if the Utica, after the pipeline is connected in November which took four years to complete, opening higher priced markets (roughly 2x), the additional WMB pipelines being added, having 1 million acres in the heart of the Utica, and some of the potential buyers / JVs talked about, $2-$5 billion would do a lot to curb the enthusiasm of the 33% short positions.
    Sep 26, 2015. 02:28 PM | 9 Likes Like |Link to Comment
  • Looking At A Potential JV Candidate For Chesapeake Energy, The Powder River Basin [View article]
    The way it is written, "$500 million of Chesapeake's senior notes matures in 2016, followed by roughly $1 billion of its senior notes that will mature in 2017," as if it is a REQUIREMENT to payoff from cash, and not refinance. It is quite possible, probable, this will be rolled into a combined offering due in 7 years (as CHK has done with other bonds).

    CHK's debt is inline with many others, and relatively much lower than other companies with FAR higher valuations. By year end when the pipeline issues are resolved, costs significantly lower, the fog will clear and all the investing by rumor will go away. And there are a number of blockbuster events that could occur that will cause the dramatic stock price increase.
    Sep 22, 2015. 12:43 PM | 6 Likes Like |Link to Comment
  • Yet Another Massive Gold Delivery Week On The SGE [View article]
    This is interesting article BUT very confusing. I admit I am new to the game of gold, so here are my questions:

    1. Backwardation normally means that there is too much current supply of a commodity, forcing current prices down. This seems logical applied to gold, as the price of gold is near current lows (except for the last few days), and the recent backwardation would indicate downward pressure on gold's price.

    So why is gold backwardation bullish?

    2. The article seems to imply that the Shanghai Gold Exchange is the Chinese governments personal exchange, and COMEX and London are for all others.

    Is this the true that the buyer of quantity must be Chinese?

    3. Given the lack of honesty and transparency of Chinese reporting, the variety of reports that are published are seemingly cannot be believed. The financial press is full of articles on the $500 billion of currency outflows in the past months, the recent $98 billion of US Treasury sales, other articles of $500 billion of Treasury sales in the past 90 days, reports of $300 billion to $1.5 trillion to buy stocks with Chinese government money, by Chinese government entities, to prop its stock market that has fallen 40% from its bubble high, etc. And of course the Chinese growth rate is now somewhere between 0-5%, its economic woes may require more stimulus. China's major banks' non-performing loans have doubled in the past year, and their provision for loan losses, at multi-year lows, and with industrial/ commodity loans in deep do-do, the banks may need bailouts.

    a) Given the fictitious Chinese government reports, and there are NO reports that the author cited, how do we know the China did the buying?

    b) Why could this not be any country, gold funds, or hedge funds, bringing their shopping cart and saying "Fill her up"?

    c) Given the financial stresses listed above, why would China be buying gold, since it will have no impact on a stumbling economy?

    d) What are the ramifications if China was the buyer?

    4. To the last post form Recusant, where does 2600 tonnes of gold come from in one year to be resmelted in Switzerland?

    To whomever replies - thank you in advance for shedding some light on this "situation" - if in fact it is an economic situation.
    Sep 20, 2015. 12:29 AM | 2 Likes Like |Link to Comment
  • Chesapeake Energy sinks on reports of "low-ball" bids for Utica assets [View news story]
    This is irresponsible to give any credibility to "reports" with no verified facts, no named sources, no independent verification - claiming "reports" - which means more than one - yet no F-A-C-T-S. Irresponsible to send out such vapor-news as if it was real.

    And do the arithmetic. 1,600 sq. miles, 1 million acres, in the heart of the Utica which it cost $3 billion to assemble the leases (no tears for the "poor" land owners), now with excellent production, the pipeline to the Gulf coming online that was started 4 years ago, the new WMB contract + WMB's commitment to add miles of connector pipelines, the gas via the pipeline able to double the revenue, etc.

    Meeting Lawler at the annual meeting, and seeing his results is nothing short of impressive - simply outstanding!

    Try $5 billion on a fair per acre basis with proven reserves and lowest cost production at $0.25 mbtu, pipeline, market pricing, etc.
    Sep 17, 2015. 09:07 PM | 11 Likes Like |Link to Comment
  • Should You Follow Charif Souki And Sell Cheniere Energy Stock? [View article]
    LNG has presold all shipments form the 9 trains for 20 years to Europe.
    This helps break the Russian control and threat of European nat gas needs.
    The last train comes online in 2019.
    Sep 17, 2015. 04:35 PM | 4 Likes Like |Link to Comment
  • Coming Higher U.S. Natural Gas Prices Should Help Low Cost Producer Chesapeake Energy [View article]
    One positive article versus four down - the desperation is by the short sellers to keep driving CHK lower with a twice a day "the sky is falling" scare article with misstatements and opinion.
    Jun 30, 2015. 10:54 AM | 3 Likes Like |Link to Comment
  • Coming Higher U.S. Natural Gas Prices Should Help Low Cost Producer Chesapeake Energy [View article]
    Great that you (and I) seem to be the only investor(s) with a brain to look at the maturity schedule.

    And all the nonsense about debt, everybody thinks when debt is due it MUST be paid from cash - when in reality, most bonds are rolled out 5-10 years.

    If a homeowner has a 3 year note with a 30 year amortization does ANYONE expect the homeowner to have cash in 3 years to pay off the loan? No, it is refinanced.
    Jun 30, 2015. 10:51 AM | 9 Likes Like |Link to Comment
  • Chesapeake Energy cut to Sell at UBS [View news story]
    Icahn sold his NFLX yesterday for a $2 billion profit - let's hope he buys another 11% of CHK for $900 million and then gets together with Southwestern and their combined 38% gets CHK put up for sale...

    The roughly TOTAL reserves of 40-50 BBOE are worth far more the 14-cents per barrel, when the average finding cost for majors was $7 per barrel, and CHK's production cost is <$6.
    Jun 25, 2015. 08:57 AM | 6 Likes Like |Link to Comment
  • Chesapeake Energy: An Open Letter To Carl Icahn [View article]
    Why? For taking $50,000 and building it to $18 billion of shareholder equity?
    Or for having the largest reserves of any Company in America, covering some 20,000 sq. miles, with roughly 50 billion BOE?
    Or, in 2012 finding more oil than XOM and CVX combined?
    Or for having such great assets that last year's sale of 3% of its non-core acreage brought in 50% of its market cap?
    Or that now the TOTAL reserves are valued at roughly 5-cents per barrel?
    Or, having a low debt to equity ratio (compare to other companies)?
    Or, participating in wells, paying his %-cost, that was approved twice by special shareholder votes and having 3 pages of disclosures in the annual Proxy materials?
    Or having the lowest worker injury rate?
    Or being one of the best places to work year after year?
    Or having one of the best worker pension programs?

    Recall that XOM was the #4 producer, XTO was #5, and only the merger made XOM the largest producer.

    Write a letter to Southwestern and the other big holders that the top six hold 51%+ of shares and can effect a sale. Icahn & Southwestern have 27% of shares.
    Jun 23, 2015. 12:29 AM | Likes Like |Link to Comment
  • Chesapeake hits 52-week low amid biggest natural gas surplus in 12 years [View news story]
    You said, "It is drowning in its immense debt,..."

    Given that CHK has an $18 billion net worth, what % of debt is acceptable?

    Other than the majors (XOM, CVX, COP, etc.) which drillers have a lower debt percentage?

    Considering CHK has the largest oil/gas reserves in the U.S., covering 20,000 sq. miles, and for example, in 2012 CHK discovered more oil than XOM and CVX combined, how much debt is acceptable to keep this precious asset?

    From my view, the moral atrocity is that more nat gas is flared off at the well head than used in America. Converted to BTU equivalents, at $100 oil, that is nearly $500 billion burned off. When Japan is paying $14 mbtu for nat gas, and it is selling here for $2.60, it is sacrilegiously wasteful and unprofitable that the U.S. is not selling gas overseas. Yet politicians of both parties are against exports so America does not run out - yet it is okay to burn it.

    If you Google, "Bakken flaring from space" click on Images, the pics are startling - more light is coming from Bakken flaring than Chicago or Minneapolis light pollution.
    Jun 4, 2015. 07:39 PM | 10 Likes Like |Link to Comment
  • Time to follow Icahn and buy Chesapeake Energy, Sterman says [View news story]
    Just some facts - McClendon's well participation program was approved twice by shareholder votes on annual proxy votes (those annoying forms you get from every company every Spring).

    Plus it was fully disclosed with 3 pages of disclosures every year - so if you did not know about it, that was because YOU did not read the annual 10K or Proxy materials.

    There was no conflict of interest...the shareholders said voted "yes" to they guy who amassed the largest oil & gas reserves in the U.S. and who built $50,000 to $18 billion of equity.

    Which is the conundrum here, as the total proved and unproved reserves are valued at 5-cents per BOE, when finding costs for the majors is reported at $7.
    Jun 4, 2015. 01:33 PM | 3 Likes Like |Link to Comment
  • Timyan's Favorite Short-Long Pair Trade: World Acceptance Vs. Exchange Bank [View article]
    I think you are letting your personal opinion cloud the facts.

    I started my career working for Household Finance, similar to WRLD, but our maximum rate was far lower near 20%, and ended up as a community bank president and director - so I understand both of your investments.

    Of all the small loan company lenders, WRLD is the most credible and fair. It does not make payday or title loans. Its rates are high, but not the horrendous rates of other companies. Also, like too many things, the southern states with the most poor people are gouged the most - which is a failure of the banks to be honest lenders, forcing the poor to "loan shark" rate lenders. Which makes me wonder why these people voluntarily suffer by voting to be a Red state.

    Your bank idea is a good safe investment that should benefit as rates increase.

    I am long WRLD as the short interest is 95% of the float. Going thru WRLD's business practices there is little to be challenged, though there will be some "corrective actions" as the government never does an investigation and NOT find something in order to claim victory (yet, not one banker has gone to jail for nearly collapsing the global financial system, and putting 12 million Americans out of work).

    I believe there will be a huge short squeeze on WRLD when the news comes with at least a 50% up move.

    What do you think of WSBF with its dramatic turnaround from under a FDIC order, share buyback, below book, though the ROA and ROE have not yet recovered?
    Jun 4, 2015. 12:45 PM | Likes Like |Link to Comment
  • What's InterCloud's Fair Value? [View article]
    Joe Trader 69 sure is trying to protect his short position with idiotic statements that IBM and HP are in this business. His uninformed ramblings show he does not understand IBM, HP, or ICLD - a perfect trifecta.
    May 16, 2015. 01:14 AM | Likes Like |Link to Comment