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Regarding CHK (and really any other energy name), I would strongly encourage you to look across the capital structure to see where the best bargain is.

CHK specifically has a preferred trading at ~83% of par, paying 7% current yield (on price) and converting to common (again at current price) at effectively $23-24.

You may or may not still prefer the common... but given the uncertainties, I would think this particular preferred is far superior to common on a risk adjusted basis.

It's quite illiquid, so that is a factor as well.

I think in distressed and semi-distress situations, on the way down at least, common lags... so in distress on the front end, look toward other parts of the capital structure, both as a place to invest, and also as a warning for what other markets are pricing the enterprise at.

Preferreds / Debt have their issues, but they protect you well from dilution, and in the case of converts, you get a lot of the upside. (7% coupon, 20% appreciation to par, + conversion 80% higher).

I have no position in CHK, but have looked at it for a convertible arbitrage before (passed).
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