Seeking Alpha

Chatos'  Instablog

Send Message
Personal investor for more than 30 years, learned a lot, made some money lost some, never stop learning
View Chatos' Instablogs on:
  • CHKR - Chesapeake Granite Wash Trust - Downfall Or Salvation

    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 ?

    yours truly


    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,

    May 02 4:08 AM | Link | 2 Comments
Full index of posts »
Latest Followers

Latest Comments

Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.