Apple (AAPL +3.2%) is reportedly offering $17B in its bond sale, making it the largest U.S. corporate debt deal ever. Bloomberg reports $5.5B in 10-year debt will be sold at just a 75bps premium to 10-year Treasury yields (currently at 1.68%). (previous: I, II) Update (3:47): The deal is official. Reuters: "The company is offering $1 billion of three-year floating-rate notes, $1.5 billion of three-year fixed-rate notes, $2 billion of five-year floating-rate notes, $4 billion of five-year fixed-rate notes, $5.5 billion of 10-year fixed-rate notes and $3 billion of 30-year fixed-rate notes." [View news story]
Let them figure it out. Good luck with that. Smoke and mirrors can only last so long. I'm withyou on your take on this.
The Invidious 'Down Payment Requirement' Meme [View article]
The banks don't want to hold onto the 5% because it's a liability on their books and effects their bottom line and thus the amount of "new" money they can lend. If you have a package of 20% downpayment mortgages the likelyhood of default is very slim. These insruments should have a yield that is LESS than the underlying orginal mortgage not more.
Chesapeake Energy (CHK) will allow ex-CEO Aubrey McClendon to acquire oil and gas holdings adjacent to CHK's wells in which he is a part-owner, altering the terms of an earlier agreement. CHK will pay McClendon nearly $50M in severance and allow him the use of a company aircraft. The relaxed terms ought to come in handy as he opens a new energy business a half-mile from his old office. [View news story]
AM smart-lol. Self-promoting,greedy,... absolutely. If you are a true investor you always hedge your positions. He didn't do that with CHKs natural gas production and the co. lost its shorts. I seem recollect a rather large margin call that was met by his own co.some years back. Now that's surely the sign of a smart man.
Chesapeake Energy (CHK) will allow ex-CEO Aubrey McClendon to acquire oil and gas holdings adjacent to CHK's wells in which he is a part-owner, altering the terms of an earlier agreement. CHK will pay McClendon nearly $50M in severance and allow him the use of a company aircraft. The relaxed terms ought to come in handy as he opens a new energy business a half-mile from his old office. [View news story]
Anytime A.M. is mentioned it is a reminder of the dismal past (last 2-3 yrs.} If chk wants to get out of this maess it must first sever all ties with him and treat the whole thing like a divorce and sell off assets on the cheap so they can move forward. Until this is done paying high dept costs while waiting for better prices on assets is pure stupidity KISS.
My Chat With A Hedge Fund Manager On Why I Own Sirius [View article]
30 percent of $3 is$.90 . I think he is probably looking to get out around $3.60 to be safe.New car sales can't increase forever and putting people in cars that cost $200.00/month isn't going to add up to alot of renewels----Everyone loved AAPL....
More from Chesapeake's (CHK) conference call: Acting CEO Steven Dixon says CHK had been locking in prices for this year's gas sales and hedging for 2014 at prices "well above $4" per Mbtu. However, the immediate impact will be limited because CHK has already hedged 72% of this year’s expected revenues, after 2012 revenues had been hammered by not hedging before gas prices fell to 10-year lows. (also) [View news story]
The real issue is how long will Mr. Icahn hang around? If he bails there are a lot of other plays. If he stays there is reason to believe that all the cards are not on the table and that CHK is worth the wait.
The $265M Sanchez Energy (SN -1%) is paying Hess (HES -3.5%) for 43K acres of south Texas shale is much lower than the $820M Tudor Pickering expected, which "highlights softness in non-core Eagle Ford" shale market. The firm says the deal does not bode well for Chesapeake (CHK -5.2%); applying the price Hess received implies a $600M value to CHK's land vs. Tudor's earlier estimate of $1.25B. [View news story]
Our Government has done it before with land grabs hundreds of years ago, why not now by forcing the hands of various natural gas producers in order nto have the ability to dictate/participate/ take over natural gas production and sales in an extremely valuable market.. Stranger thing have happened- just a thought...
Along with its Q4 results, Western Gas (WES) announces it's buying a 33.75% interest in Marcellus shale gas gathering systems from Anadarko (APC) for $490M, and a similar interest in Marcellus gathering systems from Chesapeake (CHK) for $133.5M. The assets have a combined throughput of over 1.2 Bcf/d. WES plans to to finance the purchases with $220M in cash on hand, credit facility borrowings, and the issuing of 449K shares at an implied price of $54.55. (PR) [View news story]
These oil/gas producers are slowly shooting themseves in the foot. Don't they know that you can have all the ammo in the worldbut it is worthless without the gun toshoot it. Why do they naively keep on selling their share of the delivery system? Sounds like they're a tad in need of some cash--ya think!
"High above the Alps my Gnome is hearing a rumor that Apple will announce a stock split at tomorrow's shareholder meeting," tweets Doug Kass. The rumor has led Apple (AAPL +1%) shares to spike higher. Update (2:24 PM):Kass is using the post-rumor spike to sell part of his trading position in Apple. [View news story]
I said it once before, AAPL will break below 500 and then split making it "more affordable". I don't see anyone talking about options that are for n10 shares, they start trading soon . These insruments are clealy intended for people who can't afford 3,000 for one reg 100 share contract.
Chesapeake Energy (CHK) says its internal probe of the financial dealings of outgoing CEO Aubrey McClendon found no intentional wrongdoing. CHK also says its board concluded that no antitrust laws were violated in connection with the acquisition of Michigan oil and gas rights in 2010. CHK +1% premarket. [View news story]
I find it typical of this co. to bring this out one day before earnings. Seems tome that thry are trying to take the edge off what very well miught be dismal earnings at least they can utilize it in sugar coating guidance.
How Long Can Chesapeake Energy Climb Like This? [View article]
Keep sitting on your hands. When nothing can go wrong and everyone's on board (AAPL) oops! When noone likes and even hates you -well you get the picture, if not at least your hands will stay warm.
Steve Cohen loses another client, with Citigroup's (C) private bank deciding to pull its $187M investment from SAC Capital due to the hedge fund's legal issues. Citi says it would reconsider investing should Matthew Martoma and SAC ultimately be exonerated. $187M represents 9.4% of assets in Citi's hedge-fund platform. [View news story]
If you want to kill the dragon you must cut off it's head. I applaud C for pulling $ out. Let us not forget that Steve Cohen has been involved with insider trading accusations befoe. He is fully aware of what his traders are up to. It is just a matter of time before they come clean and the reality of SAC financial dealings bring the house and Mr. Cohen down.
S&P and Moody's weigh in to affirm the credit rating of Access Midstream (ACMP -4.7%) after the natural gas partnership buys most of Chesapeake's (CHK -0.3%) remaining natural gas and crude oil gathering assets for $2.16B and Williams Cos. (WMB -0.4%) acquires a stake in ACMP for $2.4B. S&P also affirms WMB’s rating, while Fitch says it expects no rating change. [View news story]
I can't wait for chk's next proxy so that i can vote Mclendon out. You can have all the ammo in the world but it is useless without a gun . Access Midstream knows in this low priced natural gas environment that it is the delivery that makes the $.
"Death of Equities?" Assets in fixed income hedge funds are set to overtake those in equity strategies for the first time in the history of the industry, according to HFR. The move jibes with other stories from 2012 about the abandoning of stocks for the "safety" of fixed income. [View news story]
You are right on and may I add that hedge funds must like punishment, in this case a soon to be inflationary economy and a massive hit to all fixed income instruments.
Quick take on Apple/HTC: If the deal reflects a new willingness by Apple to make peace with Android OEMs, it's likely for one or more of the following reasons. 1) Apple realizes its costly legal war has done little thus far to halt Android's share gains, or to cripple iPhone rivals. 2) Apple is aware its lawsuits are hurting its image in some circles. 3) Apple realizes it could reap a windfall from Android royalties. For example, a royalty of $10-$15/device (on par with what Microsoft is reportedly charging) could yield over $5B/year, given activation trends. [View news story]
Stp picking ,your bleeding to death. $500--stock split then you will be on the road to recovery as long as you lose the pervasive arrogance
Apple (AAPL +3.2%) is reportedly offering $17B in its bond sale, making it the largest U.S. corporate debt deal ever. Bloomberg reports $5.5B in 10-year debt will be sold at just a 75bps premium to 10-year Treasury yields (currently at 1.68%). (previous: I, II) Update (3:47): The deal is official. Reuters: "The company is offering $1 billion of three-year floating-rate notes, $1.5 billion of three-year fixed-rate notes, $2 billion of five-year floating-rate notes, $4 billion of five-year fixed-rate notes, $5.5 billion of 10-year fixed-rate notes and $3 billion of 30-year fixed-rate notes." [View news story]
The Invidious 'Down Payment Requirement' Meme [View article]
Chesapeake Energy (CHK) will allow ex-CEO Aubrey McClendon to acquire oil and gas holdings adjacent to CHK's wells in which he is a part-owner, altering the terms of an earlier agreement. CHK will pay McClendon nearly $50M in severance and allow him the use of a company aircraft. The relaxed terms ought to come in handy as he opens a new energy business a half-mile from his old office. [View news story]
Chesapeake Energy (CHK) will allow ex-CEO Aubrey McClendon to acquire oil and gas holdings adjacent to CHK's wells in which he is a part-owner, altering the terms of an earlier agreement. CHK will pay McClendon nearly $50M in severance and allow him the use of a company aircraft. The relaxed terms ought to come in handy as he opens a new energy business a half-mile from his old office. [View news story]
My Chat With A Hedge Fund Manager On Why I Own Sirius [View article]
More from Chesapeake's (CHK) conference call: Acting CEO Steven Dixon says CHK had been locking in prices for this year's gas sales and hedging for 2014 at prices "well above $4" per Mbtu. However, the immediate impact will be limited because CHK has already hedged 72% of this year’s expected revenues, after 2012 revenues had been hammered by not hedging before gas prices fell to 10-year lows. (also) [View news story]
The $265M Sanchez Energy (SN -1%) is paying Hess (HES -3.5%) for 43K acres of south Texas shale is much lower than the $820M Tudor Pickering expected, which "highlights softness in non-core Eagle Ford" shale market. The firm says the deal does not bode well for Chesapeake (CHK -5.2%); applying the price Hess received implies a $600M value to CHK's land vs. Tudor's earlier estimate of $1.25B. [View news story]
Along with its Q4 results, Western Gas (WES) announces it's buying a 33.75% interest in Marcellus shale gas gathering systems from Anadarko (APC) for $490M, and a similar interest in Marcellus gathering systems from Chesapeake (CHK) for $133.5M. The assets have a combined throughput of over 1.2 Bcf/d. WES plans to to finance the purchases with $220M in cash on hand, credit facility borrowings, and the issuing of 449K shares at an implied price of $54.55. (PR) [View news story]
"High above the Alps my Gnome is hearing a rumor that Apple will announce a stock split at tomorrow's shareholder meeting," tweets Doug Kass. The rumor has led Apple (AAPL +1%) shares to spike higher. Update (2:24 PM): Kass is using the post-rumor spike to sell part of his trading position in Apple. [View news story]
Chesapeake Energy (CHK) says its internal probe of the financial dealings of outgoing CEO Aubrey McClendon found no intentional wrongdoing. CHK also says its board concluded that no antitrust laws were violated in connection with the acquisition of Michigan oil and gas rights in 2010. CHK +1% premarket. [View news story]
How Long Can Chesapeake Energy Climb Like This? [View article]
Steve Cohen loses another client, with Citigroup's (C) private bank deciding to pull its $187M investment from SAC Capital due to the hedge fund's legal issues. Citi says it would reconsider investing should Matthew Martoma and SAC ultimately be exonerated. $187M represents 9.4% of assets in Citi's hedge-fund platform. [View news story]
S&P and Moody's weigh in to affirm the credit rating of Access Midstream (ACMP -4.7%) after the natural gas partnership buys most of Chesapeake's (CHK -0.3%) remaining natural gas and crude oil gathering assets for $2.16B and Williams Cos. (WMB -0.4%) acquires a stake in ACMP for $2.4B. S&P also affirms WMB’s rating, while Fitch says it expects no rating change. [View news story]
"Death of Equities?" Assets in fixed income hedge funds are set to overtake those in equity strategies for the first time in the history of the industry, according to HFR. The move jibes with other stories from 2012 about the abandoning of stocks for the "safety" of fixed income. [View news story]
Quick take on Apple/HTC: If the deal reflects a new willingness by Apple to make peace with Android OEMs, it's likely for one or more of the following reasons. 1) Apple realizes its costly legal war has done little thus far to halt Android's share gains, or to cripple iPhone rivals. 2) Apple is aware its lawsuits are hurting its image in some circles. 3) Apple realizes it could reap a windfall from Android royalties. For example, a royalty of $10-$15/device (on par with what Microsoft is reportedly charging) could yield over $5B/year, given activation trends. [View news story]