Asian shares fell today and the Japanese yen rose as the growth in Chinese home prices eased for the first time in 14 months. Tokyo`s Nikkei index fell 0,2%. Tokyo stocks are also down, while the activity in its major export is declining.
European stocks and the Euro got a boost on Monday as the German carmaker Volkswagen came with a disappointed outlook with limited gains. Right after Viktor Yanukovich was ousted rom the presidency in Ukraine, the country`s dollar bonds skyrocketed, and the hryvnia currency fell.
On the commodities front, Brent crude is down -0,15% to $109,68. Gold is up for a third week in a row, to $1,334,10, up +0,79%. Silver is up 0,76%, to $21,98 and Copper is down together with the markets, to 322,00, down -1,23%.
Chesapeake Energy (CHK)
Chesapeake Energy (CHK) is pursuing strategic alternatives for its oilfield services division. The Oilfiesld Services generataed revenue of $2,2B last year. The investor Carl Icahn own 10% of the shares in Chesapeake Energy. Rumors say he is seeking a cash bid of up to $40 a share.
Rising natural gas prices could help the company to profit off a plan to revive the maligned Haynesville shale play, where it gambled billions of dollars six years ago. The rigs they have could boost daily rates for the U.S land drilling company.
Chesapeakes Energy`s plan would increase the number of Haynesville rigs 25% – 50 by the end of this year. Renewed gas drilling could drive up margins for U.S rig contractors. CHK have spent a lot of money in oil shale drilling, so higher demand will help then in the future.
It will be interesting to see who buyer will be in CHK. Is it gonna be Icahn, Exxon Mobil or ConocoPhillips? All of them are potential buyers while European majors disqualify themselves. Carl Icahn sold half of his stake in Netflix last year. He have success with investments in Herbalife (HLF) and Apple (AAPL) too.
Selling half of his shares in Netflix gave him a profit of $800 million. Carl Icahn started in 1980`s as an activist investor and there has never been a better time for activist investing than today. Activist involvement is necessary to ensure the competitiveness of corporate America. Chesapeake Energy is more of a restructuring play right now. CHK will probably continue to sell itself piece by piece.
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