Chesapeake Struggling?

[Conan71]

Now is a good time to add Chesapeake to my watch list - $12 a share and I am getting in.
And if it goes below, keep on buying.

Just one good cold winter away from scoring big time....

Problem is CHK isn't DTAG.  There's a lot of unknowns about CHK right now and I think we are just hearing about a few of the fleas, I suspect there are a bunch more.  Are they seriously circling the drain a la Enron and SEM, or in need of a management overhaul and some help with NG prices?

I agree with TTC- don't try to catch a falling knife.

[DTowner]

Problem is CHK isn't DTAG.  There's a lot of unknowns about CHK right now and I think we are just hearing about a few of the fleas, I suspect there are a bunch more.  Are they seriously circling the drain a la Enron and SEM, or in need of a management overhaul and some help with NG prices?

I agree with TTC- don't try to catch a falling knife.

Zero is the only price floor about which you can be absolutely sure.  The drip of bad news coming out of Chesapeake seems to be picking up pace.

[heironymouspasparagus]

Agreed....more likely KF would end up with acreage and wells close to their own educated fields....

But Conan, I'd bet he has to eventually divest his Thunder interest. Maybe not his baseline ducats.

AM needs to join in with Boone's attack on Koch. Time has come for the wagons to circle the Wichita mob. They're self serving basterds who need to be isolated. All this time I thought Boone was a wingnut....

T. Boone Pickens: Biggest Deterrent To U.S. Energy Plan Is Koch Industries

http://finance.yahoo.com/blogs/daily-ticker/t-boone-pickens-biggest-deterrent-u-energy-plan-125553999.html

I hope he's right about $4...I hear $1.20...Heir, be patient....don't try catching a falling knife.

Can be dicey.... the "flea" in this case seems to be the billion dollars he borrowed from the company to pay for his well interest.  I'm sure his plan is to let the company end up paying it back for him through "appreciation".  (Not too different from what Franklin Electric - Bill Lawson - did to Oil Dynamics, here in town - on a much smaller scale.)

[Sutton]

The hedge fund scandal is a much bigger deal than the well participation plan. The potential for conflict of interests is mind numbing.

[Teatownclown]

Chesapeake is a hedge fund...people think it's an energy company....that's why I liken this to TK....

[heironymouspasparagus]

Looking like Enron, ain't it? 

Wonder what CHK participation was in Enron activities.  Or were they still learning the ropes from Devon and Williams Bros.?

[swake]

The hedge fund scandal is a much bigger deal than the well participation plan. The potential for conflict of interests is mind numbing.

http://www.reuters.com/article/2012/05/02/us-chesapeake-mcclendon-hedge-idUSBRE8410GG20120502

Here's the article on it. I don't see how a lot of people don't go to jail over this. It's simply amazing what McClendon has been up to,

[heironymouspasparagus]

http://www.reuters.com/article/2012/05/02/us-chesapeake-mcclendon-hedge-idUSBRE8410GG20120502

Here's the article on it. I don't see how a lot of people don't go to jail over this. It's simply amazing what McClendon has been up to,

Yes, you do...it's "business"...it's what we have evolved into over the last 32 years.  It's good for business...

Think of the jobs that might be lost, if he weren't allowed...nay, even encouraged... to engage in this type activity!  The horror of it all...

[Conan71]

Can be dicey.... the "flea" in this case seems to be the billion dollars he borrowed from the company to pay for his well interest.  I'm sure his plan is to let the company end up paying it back for him through "appreciation".  (Not too different from what Franklin Electric - Bill Lawson - did to Oil Dynamics, here in town - on a much smaller scale.)

How about selling off key assets to keep themselves in cash?  That should be a far bigger worry to shareholders as to the long term viability of the company.

He is sounding more and more like a degenerate gambler just like Kivisto.

[DTowner]

The daily drip of bad news just turned into a gusher.  By tomorrow the secruities fraud class action filings will start and the board members will be lawyering up.  Given Chesapeake's large debt and $2 gas prices, this ride will get very bumpy.

[nathanm]

Chesapeake is a hedge fund...people think it's an energy company....that's why I liken this to TK....

Every large energy company is a hedge fund these days. So are large airlines. It's the nature of trying to do business that relies on hydrocarbons in a market fueled primarily by speculation and only somewhat by fundamentals.

That McClendon also had a hedge fund of his own fuel further speculation and help drive the wild gyrations of energy prices isn't terribly relevant to the unfortunate reality of financial deregulation. The insider trading is beside the point. Without the ridiculousness that exists in the commodities markets at present, there'd be little incentive to do it because prices would be more stable. (they gyrated back in the day, but not like this!)

[rdj]

And you wonder why energy prices don't seem to follow demand?

If you are in any commodities business today you've been lured by the siren song of hedging.  Lumber?  Coffee?  Steel?  Oil?  Natural gas?  You name it, it can be hedged.

[DTowner]

And you wonder why energy prices don't seem to follow demand?

If you are in any commodities business today you've been lured by the siren song of hedging.  Lumber?  Coffee?  Steel?  Oil?  Natural gas?  You name it, it can be hedged.

The fact that natural gas is around $2 demonstrates supply and demand still has a lot to do with price rather than just those 'ol sinsiter "speculators."

[Teatownclown]

The fact that natural gas is around $2 demonstrates supply and demand still has a lot to do with price rather than just those 'ol sinsiter "speculators" "manipulators."

Example:

what a con man.... anybody in here his dupes?

[nathanm]

The fact that natural gas is around $2 demonstrates supply and demand still has a lot to do with price rather than just those 'ol sinsiter "speculators."

Yes, that's what happens when the speculators leave the market.