Topic: Growth Stocks

The Stock Pickers Digest Hotline – Friday, January 4, 2008

Article Excerpt

CHESAPEAKE ENERGY, $39.32, symbol CHK on New York, has sold some of its natural gas assets in Kentucky and West Virginia to UBS AG and Deutsche Bank’s DB Energy Trading LLC unit for $1.1 billion. The sale entitles UBS and Deutsche Bank to receive scheduled quantities of natural gas from Chesapeake’s interests in more than 4,000 producing wells over a 15-year period. The transaction includes approximately 2% of the Chesapeake’s current proved reserves and net production. The company will retain rights to drill to deeper depths on existing wells that are part of the sale, and to drill new wells on the properties. The sale lets Chesapeake get cash for assets with limited potential, and then use the funds for other projects with much higher growth prospects. Chesapeake is the third-largest U.S. domestic natural gas producer after BP and ConocoPhillips. Chesapeake is still a buy. GOODYEAR TIRE & RUBBER CO., $24.58, symbol GT on New York, will take a $30 million to $35…