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  • Chesapeake Energy's Double Leverage [View article]
    CHK needs to use its cash reserves to buy back 1/2 priced bond debt. To do that makes a lot more sense then to increase production at a price they can not make a profit on. They also need to do a reverse split, one new for four old shares. Then issue more shares to replace the cash and do it again for as long as they can buy the bond debt at 50% off full price.
    Nov 23, 2015. 09:42 PM | 2 Likes Like |Link to Comment
  • Chesapeake Energy - Why We Have To Expect More Downside From Here [View article]
    All of that land leasing and drilling just to hold acreage of the past is all money that was mostly wasted. They can't sell it for what they got in it. They are forced to write this all down. They could sell 30% of their best acreage to cover 40% of their debt and reduce 90% of their earnings. The other 70% has been on the market with no takers for some time now. With present prices they can't even cash flow on the core of the core. The best thing CHK could do is issue shares to buy back its 1/2 priced bonds.
    Nov 21, 2015. 01:59 AM | 1 Like Like |Link to Comment
  • Chesapeake Energy - Has It Reached The Bottom? [View article]
    @bob lustig
    In a stock swap you simply swap shares of stock from each company in an agreed upon price in order to form 1 company out of two companies. CHK screwed over SWN that is already hurting CHK. CHK ended up paying a lot of money for none delivery of energy production when SWN simply decided to shut down until the price of that production is going to be high enough to be profitable. Neither company anticipated this to happen but it did. SWN bought into something that was much worse then what the CHK books showed. So they decided to shut it down until price recovers and they figure out how to fix the problem. This was supposed to be a short term problem that is turning into a long term problem because prices are not recovering. If both companies had worked together it would have benefited both of them. Instead CHK unloaded their problem on SWN, who stopped that production because of unprofitability and CHK is now obligated for transport of product that is not being produced. The thing about screwing is that it can come back and screw you. This problem could go on for a few more years. Right now prices for production be it gas or oil are not exactly increasing. It used to be a billion here and a billion there didn't matter. Now that the shit has hit the fan, it does. SWN likes to move its own production. CHK farmed that out to reduce debt. In this case SWN is not obligated to use CHK's farmed out product moving service. Instead SWN has decided to stop production until they get their own pipeline out there. Now SWN has even scraped that idea. They have decided to simply walk away from a good number of producing wells because they are not profitable at today's oil and gas price. If you need an investment to reduce your tax obligations, the wells are on sale at a very deep discount and so far no takers.
    Nov 19, 2015. 08:07 PM | 2 Likes Like |Link to Comment
  • Chesapeake Energy - Has It Reached The Bottom? [View article]
    CHK and LNG are going to do a stock swap to merge before 2018 is over. CHK has a little time to spin off a few more pieces to keep the debt wolves from blowing the house down. CHK share price is going to $0.01. CHK bond debt holders own the company, not the shareholders. LNG basically has the same problems, but is still better off.

    If I was managing CHK right now I would try to do a share swap with SWN, the very company they screwed over on the last deal. I would unscrew the screw over.
    Nov 19, 2015. 10:30 AM | 1 Like Like |Link to Comment
  • A Better Chesapeake Energy Provides Opportunity To Investors [View article]
    From above = from my view, higher oil and gas prices will come faster than expected. I hope so, but don't think that will happen. Iraq, Iran are going to increase exports dramatically, thus oil price will most likely stay low for a long time.
    Nov 18, 2015. 12:33 PM | Likes Like |Link to Comment
  • Commodity Prices Keep Falling [View article]
    US producers can cut all they want. More oil will simply be imported. OPEC is determined to regain the lost market share even if it bankrupts them.
    Nov 15, 2015. 10:42 AM | 1 Like Like |Link to Comment
  • Budgetary Sleight Of Hand [View article]
    You Bernanke have lost your head. Greenspan and you (Bernanke) have enriched your member banks at the expense of the real main street economy with the ever lower interest rate process that made possible the financialization that has and continues to destroy the economy. With an economy that basically destroyed at the expense of financialization, the Fed itself will have to finance government. The highway bill is a good example of this. Fuel taxes revenue are way short of the revenue needed to fund needed highway spending. So the money has to come from somewhere else. Congress can't increase taxes anymore without hurting the economy, so they are forced to do what in the past was unthinkable. In short the Congress wants the Fed to print the money, they are spending to please their voters.

    I agree that the net effect of this on the Treasury's cash flows = receipt of a lump sum today, but reduction in future revenues equal to the interest payments on that lump sum - is precisely the same as that resulting from the issuance of fresh government debt. I agree that drawing on the Fed's capital provides no new resources, and amounts to paying for the spending by issuing new government debt. But that is how you see it. Congress can't go to the voters and say we want to fix roads by raising new taxes anymore. Instead the Congress expects the Fed to simply print the money in paper and coin form, not issue new digital debt digits. ZIRP made possible the financialization that is destroying the real main street economy so the financial economy can enrich themselves at main street expense. We now have the same problem Japan has. Revenue can not match expenses. Thus the Fed will be forced to QE to infinity to meet those expenses just like the Bank of Japan has been doing for many years now. It is either that or the entire fiat scam that you (Bernanke) and Greesnscam have so enabled with ZIRP will fall flat on its face. I for one would like to see this fiat scam come to an end. People like you and Greenspan should be stripped of all assets and placed head first into your own septic tank. All you have done is enriched your overlord member banksters who want to own it all and have the rest of us serfs suck their financial dong in the form of debt plus interest. That is coming to an end sooner than you think.

    To comply with this highway bill, let the Fed sell some of the government debt that it owns. The Fed should not be in that business anyway. Send the proceeds from the sale to the Treasury for funding the new highway construction to be. At least the government debt will be used for a constructive purpose. It is now only a matter of time before all of this government debt has to be defaulted on or the Fed has to become the bag holder of it all anyway. The fact is debt has no real purpose other than to enslave the present population and their offspring. To make this debt grow is stupid. We need to cash up, not debt up.
    Nov 10, 2015. 02:39 AM | 4 Likes Like |Link to Comment
  • Stocks Flat, Utilities Down Big After Jobs Report - Bezek's Daily Briefing [View article]
    The idea that utilities can just pass the costs along is coming to an end. More and more utilities are seeing people either not pay the bill or simply using a lot less.
    Nov 9, 2015. 05:46 PM | Likes Like |Link to Comment
  • Labor Market Is Heating Up, So Is Pressure On Fed To Respond [View article]
    The argument of improved employment is all bullshit. All of this so called employment improvements is all financed by debt. Every year the productivity of debt goes from bad to worse. And because it is going from bad to worse, the amount borrowed to keep employment up has to increase. Is borrowing to get out of debt going to work?
    Nov 6, 2015. 11:42 AM | 1 Like Like |Link to Comment
  • Rubicon Minerals suspends underground work at Phoenix gold project [View news story]
    If I was running this show I would consolidate the shares 20 for 1 and simply start over. The problem they have is that they are digging in the wrong place. They need to move a lot of waste rock to get to the better stuff. Trying to get gold out of waste rock is simple not going to be profitable. RBY needs $2,000 gold to ever be profitable. To spend $2,000 per ounce to get $1100 is not the smartest thing to do. It makes no sense to produce in order to destroy shareholder equity. This thing now has negative shareholder equity. The best thing to do is shut the operation down and re-do the exploration to see what is really there that can be mined profitable. I don't see anything here that can be mined profitable under $2,000 an ounce.
    Nov 4, 2015. 04:29 PM | 2 Likes Like |Link to Comment
  • U.S. Equities Still Outperforming [View article]
    Most indexes are made up of the same overpriced stocks. The nifty fifty are worth more then all other combined. Talk about bullshit. GOOG, AMZN, AAPL have more value then the bottom 1/3 of all stocks. We as a people have become dummer then hell!!!!
    Nov 2, 2015. 11:35 PM | Likes Like |Link to Comment
  • 3 Similarities Between The 1990 Japanese Asset Bubble Collapse And Today [View article]
    Stocks are way overpriced. Stockholders have been and will continue to be bagholders. Every single asset class is now tied to the US Treasury market, and the US Treasury market is no longer a risk free safe heaven investment.
    Nov 2, 2015. 03:26 PM | 1 Like Like |Link to Comment
  • Federal Reserve Policy: It's Never Too Late To Do The Right Thing [View article]
    In our fiat money economy the growth of debt is essential. That is because money is created through the issuance of debt. Since 2007 corporate debt has increased 8 fold. Household debt and federal debt has doubled. Commercial real estate debt has tripled. If 10% of all existing debt were to be paid with the existing money supply, there simply would be no money left in existence.

    The reality is we can't reduce debt by paying it. It has to be defaulted on. He or she who holds that debt in the end will be the bag holder. There is no other option. The banksters know it. Thus they bundle the debt so it can be sold to bag holders.
    Nov 2, 2015. 03:21 PM | 2 Likes Like |Link to Comment
  • U.S. Financial Stress Has Increased But Still Below The Red Zone [View article]
    Household finances are in the red. If one ads health insurance to household consumption, 78% of all household goes to household consumption. 14% of household income goes to capital formation in the form of equity (principal payment) of which the house is the main investment for most. 19% of all household income goes towards interest and taxes. 78 + 14 + 19 = 111%. Until this is fixed the Fed has no policy options, unless it wants to send cash to households. Our way of life is about to change.
    Oct 30, 2015. 04:31 PM | 2 Likes Like |Link to Comment
  • Gold: It Is Just Too Early For This Former Rock Star To Make A Comeback Yet [View article]
    Tell me why commodity gold has one price and credit/debt creation has a price that is on average about 34 times higher then commodity gold? It is this very credit/debt creation gold priced on average 34 times higher then commodity gold that has overburdened us by the accumulation of unproductive debt. We as a people have become dummmmer than hell.
    Oct 22, 2015. 02:06 PM | 1 Like Like |Link to Comment