IB Net Payout Yields Model

Invest like me - only at Covestor.com

Pass On Chesapeake Oilfield Services IPO

By -
After the close on Monday, Chesapeake Energy (CHK) filed for an IPO of its oilfield services division. Based on initial review of the S-1, Chesapeake Oilfield Services (COS) should be avoided at best if not shorted. Naturally this will highly depend on the ultimate valuation place on the stock once it prices and starts trading.

Chesapeake intends to raise $862M in a much announced IPO of the oilfield services division that performs a big portion of the work for Chesapeake itself. The interesting part is that the sector is under pressure so a lot of investors will see this as a desperate move. Industry leader Haliburton (HAL) is around 52 week lows and last year's fracing IPO C&J Energy Services (CJES) trades near lows as well.

Additionally, Chesapeake has made it clear that it needs to raise cash so most contrarian investors might think that such an IPO might be priced to sell. Unfortunately, the funds to be raised and the past comments from the company don't suggest any discounts on the sale.

Read the full article at Seeking Alpha.


Disclosure: Long CJES. Please review the disclaimer page for more details. 




Comments

Unknown said…
It is common knowledge that New Yorkers really love bagels, nevertheless I reckon that love might disappear when they learn what the "Sliced Bagel Tax" is. Legislators are discovering various interesting techniques to sustain net income and property or home taxes down in almost all states, yet there are new taxes appearing in different areas. Know more about this depressing, sad legislation right here: http://www.tax-defense-network-tax-laws.com/tax-defense-network-sliced-bagel-tax/
July 24, 2012 at 10:18 AM
Mark Holder said…
and this has what to do with CHK?

Funny, seriously doubt you'll get a bunch of traffic based on a comment on an old post.
July 24, 2012 at 10:52 AM
Unknown said…
a post is a post, brother. there is no old or new. as long as it stays relevant to the topic. and that relevance is about trading. tax and trading may not be the same banana, but they are both referring to the financial inflows.
July 26, 2012 at 10:02 AM
Post a Comment

Popular posts from this blog

Occidental: Still Producing Too Much Oil

By -
Image
Though oil continues plunging, the oil giants continue producing more. For Q4, Occidental Petroleum (OXY) had roughly flat production. The worst part is that OXY plans to grow production by 2% to 4% in 2016. The stock has held up somewhat strong, but the inability to turn off the spigot remains troubling. Disclosure: No positions mentioned. Please review the disclaimer page for more details. 
Read more

ChargePoint: Low Quality Beat

By -
Image
  ChargePoint beat FQ2'22 revenue estimates, but the losses are mounting. The company guided up FY22 numbers partly due to acquisitions. The stock still trades at an estimated 21x FY23 number leaving limited upside for the stock and reinforcing why venture funds sold 13.8 million shares. Looking for a portfolio of ideas like this one? Members of Out Fox The Street get exclusive access to our model portfolio.  Learn More » After  solid FQ2'22 earnings ,  ChargePoint Holdings  ( CHPT ) has seen a nice bump in the stock. Now investors have to confront the valuation divide and deal with the past insider sales likely leading to future sales on any stock rallies. My  investment thesis  remains very Bearish on the EV charging station stock on any rallies into the mid-$20s. Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Please review the disclaimer page for more details.  Update - Sept. 8 Be cautious when analysts struggle to make the bullish case on expen
Read more

Aurora Cannabis: Deal Or No Deal

By -
Aurora Cannabis was left out of the major deal making in 2018. The cannabis company updated FQ2 guidance to revenues of $50 to $55 million with a continued focus on pure production growth. The stock is down as the market is becoming less impressed with commodity farming operations due to the prime Oregon example. The stock is below key resistance at $5.40 as medical cannabis patient totals failed to impress. As the end of 2018 came and went,   Aurora Cannabis   ( ACB ) was a notable absentee from the deal making in the cannabis market. Just about all of the other major Canadian cannabis players got large investments or signed up powerful partnerships, but the related stocks didn't generally maintain rallies following the deals. Based on the early legalization data in Canada and Oregon, the best option for Aurora Cannabis might actually be selling production capacity while the Canadian market remains hot. Read the full article on Seeking Alpha.  Disclosure: No
Read more