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    Chesapeake Might Sell Itself, BP Also Significantly Undervalued

    Mon, 06/11/2012 - 05:58 EDT - Seeking Alpha
    • BP
    • CHK
    • CVX
    • SU
    • Takeover Analyst
    • XOM

    By Takeover Analyst:In my previous articles on Chesapeake Energy (CHK) and BP (BP), I have sought to defend the companies and their respective management teams from what I felt was unwarranted criticism. When investors become driven by emotion, they often lose sight of the fundamentals. In the instances of Chesapeake and BP, behavioral anomalies have distorted value. Takeover activity will dissipate the bearish negativity.At Chesapeake, Aubrey McClendon has assembled leading assets in natural gas that, while highly leveraged, will generate substantial returns when the political economy inevitably has to answer its foreign policy and energy woes. Natural gas is at its low and yet we have a 100 year supply to fuel industrial growth. Chesapeake will be riding these positive secular trends--considerable value at an affordable ~2x operating cash flow price. Now that Icahn has intervened, the dialogue surrounding the company has rightfully changed. Investors are starting to refocus on theComplete Story »

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    Related

    • Chesapeake Energy CEO Aubrey McClendon Is Stepping Down And The Stock Is Going Wild (CHK)

      Chesapeake Energy CEO Aubrey McClendon will retire effective April 1, according to a company release. Shares of CHK are surging in after-hours trading An internal review found McClendon did not engage in any improper conduct.

    • Chesapeake Bears Need To Wake Up Now, Stock To Head Skyward

      By Takeover Analyst:It's been a long slumber. If the Chesapeake Energy (CHK) bears would bother looking at the multiples and stop hallucinating fictitious stories about CEO Aubrey McClendon perhaps they too would see the folly in their ways.

    • Chesapeake Energy Surges On Aubrey McClendon Exit

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    • Chesapeake, Conoco And Exxon All Looking Like Hot Stocks

      By Takeover Analyst:What follows is a list of energy companies that are interesting to compare in light of their brand images.

    • Proof The Bears Are Wrong About Chesapeake, Natural Gas

      By Takeover Analyst:From myopic pessimism about low natural gas prices to irrational concerns over leverage and compensation, Chesapeake Energy (CHK) is an attractive play on behavioral anomalies. The fundamentals of the company are strong, and management is equipped with deep industry knowledge.

    • Analyst: McClendon's Exit From Chesapeake Is Good News, But It Does Nothing To Fix Its Balance Sheet (CHK)

      Aubrey McClendon is on his way out as CEO of Chesapeake Energy. But its cash and debt problems remain, writes Argus Research's Phil Weiss.

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      By Stock Croc:Chesapeake (CHK) has been in the news for the past month and at times the headlines have been frightening.

    • Chesapeake: A Classic Buy Low, Sell High?

      By Dividend Kings:Chesapeake Energy (CHK) released first-quarter earnings on May 1, amid serious concerns about the business practices and strategies of the company and its beleaguered CEO Aubrey McClendon. The earnings report did little to ease shareholder unease, with Chesapeake reporting a loss of $0.11 per share.

    • Marathon Oil And Chesapeake Still Undervalued, Still Strong Buys

      By Takeover Analyst:After Chesapeake (CHK) indicated that CEO Aubrey McClendon has taken more than a billion dollars worth of loans to finance growth as collateral for yet more loans, the stock took an irrational dive.

    • Is Lucas Energy Copying Chesapeake And About To Make A Bold New Move?

      By David White:A couple of years ago Aubrey McClendon, CEO of Chesapeake Energy (CHK), announced a new strategy for Chesapeake Energy. His plan was to switch more of CHK's development and production into oil instead of natural gas since oil prices were far above the historical oil to natural gas price ratio.

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