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Friday, May 25, 2012

Are Carl Icahn Rumors a Reason to Invest in Chesapeake?


 "We believe shares may have found a floor," wrote Sterne Agee analyst Timothy Rezvan in a May 23 note to clients. Much of Chesapeake Energy's $13 billion-plus debt load is unsecured by its oil and gas assets, giving the company flexibility, notes Rezvan.
"We believe Chesapeake has more flexibility to raise cash this year than many investors think. If asset sales do not proceed as planned, we believe Chesapeake could raise cash through secured debt, which would debunk the 'goose egg' theory for CHK's equity this year."

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