Any thoughts on CHK?
It's basically at it's lowest ever, is it worth buying for $8?
Chesapeake Energy): Shares of oil and gas producer Chesapeake Energy have already lost 99.7% of their value over the last 10 years. Now, the warning sirens are howling that even the remaining 0.3% is likely to vanish.
On May 8, Chesapeake filed a notice with the SEC that it intends to prepay $25 million in variable compensation amounts (that is, performance-based bonuses) to 21 top executives and vice presidents. Handing out cash to upper management often immediately precedes a bankruptcy filing: Whiting Petroleum and Diamond Offshore Drilling doled out similar awards before their own Chapter 11 filings in April.
If that's not enough, in an SEC filing on Monday, Chesapeake warned that "management has concluded that there is substantial doubt about the Company's ability to continue as a going concern" due to "the likelihood of a restructuring or reorganization." In the same filing, it admitted that it had hired consultants to explore its options, including bankruptcy.
There's not much more the company could do to indicate an impending bankruptcy besides officially filing for it, and you don't want to be holding shares when that happens. I can't imagine a worse time to buy.
