shares and bonds plunged today after CEO Doug Lawler described a risky survival strategy predicated on a $500M divestiture program and a reverse stock split.
"Our price target on this is zero," says Tudor Pickering Holt director of exploration and production Sameer Panjwani. "Everyone is concerned with the debt load here. You either have to sell assets, which in this market is pretty tough to do, or you have to generate free cash flow, which they're not doing well in this environment.
Well, zero is a price one can certainly zero in on. Go CHK!
I think Doug during the earning call made a great case for the stock to he worth -$1. The company owes approximately $9billion. The bank estimates the value to be $7billion. Seams like the market cap should be -$2billion or roughly -$1 per share.
You could make a small fortune investing in Chesapeake, just start with a large fortune.
Moral of the story here is you never should believe your own hype.
You will soon be unemployed.