Top 4%
I t appears to me that Energy is in or approaching yet another bubble. Tech, then housing, now energy. Just wondering what the prevailing thoughts in the community are and specifically how does chk fair through this. What does the anouncment on 25 million shares being sold add to this equation http://www.marketguru.com/news/chesapeake-energy-corporation-announces-common-stock/1008,11969078
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By all means, keep the ball rolling and post a new opinion.
Top 1%
guliamo
Jul 09 at 1:37 ET
Hi IT,
I've held CHK for about 5 years so though I can't answer whether or not this could be / is a bubble, I can tell you that I've seen CHK deflate more than once over the years but they seem to always come back in flying colors.
What i do know is that Chesapeake have the largest natural gas reserves in the US and the world. I also know that management have been buying up CHK shares for a long time, which is always good to know. CHK has also increased it's proven reserves every year for about 15 years - this means the company isn't drilling itself dry - on the contrary, they are buying up more drilling rights.
And though I don't know if it's a good idea to sell now and wait for it to come back up I can say that these days, if you feel unsafe with CHK, might as well get out of the market entirely.. as risk goes, my view is that this is about as unrisky as you can get..
Top 1%
guliamo
Jul 09 at 1:38 ET
As for offering stock for sale.. I think it's simply cheaper for them than borrowing. Management mentioned they want the cash to pay off debt, so I wouldn't read bad news into it..
Top 54%
sofisticated
Jul 09 at 3:58 ET
wel, is it worth buying
Top 97%
ramigabai
Jul 09 at 8:44 ET
I think energy went too high - it is a bubble and going down.
after elections in November it will start falling
Top 1%
guliamo
Jul 09 at 9:50 ET
How can energy price go down when global demand is shooting up?
As for your question sofisticated.. I hold CHK and think it's a great buy..
Top 1%
blacktuna
Jul 10 at 5:28 ET
CHK is still a good play.
Top 97%
ramigabai
Jul 10 at 12:10 ET
Energy prices will go down and oil barrel will cost 100-110 around the end of 2008. The world cannot live with such high oil prices