Chesapeake Will Have to Change
Let me start off by saying that I am not recommending the stock of Chesapeake Energy (CHK). I don't want you to own it. I don't even want you to speculate in it. I am not a bull on natural gas, and I don't like the opaque way this company is run. These afternoon filings are disastrous, because the sell-off-in-pieces strategy to keep the company going, a strategy that has worked for years, no longer seems in play because of debt compliance concerns.
Now with that out of the way, I don't know if the company can stay independent, given these filings today that say it can't sell assets in pieces. I write that because there are two countries that are so hungry for natural gas, China and South Korea, that I can see a carve-up of this company without any issue. Further, I can see how the utilities that have bought into Cheniere Energy's (LNG) plan to export natural gas would be panting for these assets....426 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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