Saturday, May 12, 2012

Chesapeake Energy or How To Lose $1 Billion In 46 Minutes


According to Marketbeat: A pair of security filings late Friday prompted Chesapeake Energy shares to plunge in the final trading hour.  First, the oil-and-gas producer filed a notice with the Securities and Exchange Commission that its first-quarter report was coming late. Moments later, Chesapeake said that it may delay or alter plans to sell some assets so it won’t endanger compliance with the conditions set out by creditors. The embattled Oklahoma City company has outlined a plan, well under way, to raise between $11.5 billion and $14 billion through asset sales and other deals to plug a budget hole and trim debt.

In 46 minutes, after the late-filing notice was made public, Chesapeake’s market capitalization lost $1.05 billion dollars, as shares fell from $16.39 to their $14.81 closing price. For the day, the stock dropped 14%.

Total market capitalization is now $9.8 billion, falling below $10 billion for the first time since the financial crisis….

Don’t stop now.  Go to http://blogs.wsj.com/marketbeat/2012/05/11/chesapeake-how-to-lose-1-billion-in-46-minutes/?mod=yahoo_hs

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