Friday, July 18, 2008

Chesapeake Energy

For each stock I will do a quick writeup from my research. Hopefully this will allow you to gain some insight into what I find attractive about this company.

Chesapeake Energy (CHK)
This is by far the single best performing stock in my personal portfolio. In a nutshell, Chesapeake Energy is involved in the exploration and acquisition of natural gas in the United States.

Competitive Advantage
Management - Insider buying (Primarily Aubrey McClendon, other directors selling). As of July 31, 2008 he singlehandedly owns 33,452,911 shares.
One of the top "producers" of natural gas
Pays a dividend

Main Competitors
I'm not a real expert here on Chesapeake's competitors, but these are what I found on Yahoo!
Anadarko Petroleum Corp. (APC)
BP plc (BP)
ConocoPhillips (COP)

Weaknesses
Volatile natural gas prices
Debt load (12B)

Financials (From Yahoo!)
Market Cap: 29.36B
P/E: 29.88
PEG: 1.00
Price/Book: 2.68
EPS: 1.82
Cash: 1.00M
Debt: 12.25B
FCF: 5.45B
Div (Yield): 0.30 (0.50%)

Disclosure: I own shares in Chesapeake Energy.

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