You have got to be kidding ! the head of chesapeake energy was up to his eyeballs in margin and then had a margin call which resulted in his entire multi-billion share ownership (now viewed as loaned equity) being liquidated for a massive loss. and the head of this company doesn't even understand when it's a good time to get in on his own company's shares? jim cramer recommended the stock just after mcclendon bought 750,000 shares (on margin we now find out), saying that chk is a great stock to own now especially when the head of the company is putting "his money" where his mouth is. excuse me cramer, it was all on margin and it was never his money in the stock...just one huge gamble that mcclendon bit the big one on...ouch ! and a ricochet huge gamble and huge loss to jim cramer of cnbc who once again got it so wrong. funny thing about cramer, he recommends citigroup a few days ago and it gets hammered. he recommended to get out of stocks last week and the market rallied 750 on monday. you see if you make enough predictions, eventually you will be right once in a while and this is just what cramer is all about. he is a one shot pony who takes 10 shots and one ends up being right. that's why he is a stock salesman or cnbc and no longer making "the big bucks" as a hedge fund manager, lol ...what a loser !!! Just like mcclendon of chesapeake energy, playing games with other people's money.
I to watch Cramer to see if he will explode. I can only watch a few minutes and then the yelling gets on my nerves.
As for the stock, just bought in at 16.60 and think it was a good buy. If it drops down to the $16 range again, I think I will pick up some more.
The nation's largest natural gas producer, Chesapeake (CHK, Fortune 500) has been hammered by concerns about a cash crunch. Its stock has fallen from $69 to $17 since July. Though Chesapeake does have $1.5 billion in cash on its books, the company's aggressive drilling plans mean it will have to sell assets, cut back on capital spending, or get more financing (tough to do in this market, though on Thursday Chesapeake did secure a new $460 million line of bank credit ) to stay cash flow positive.
One way to ratchet down the risk is by buying Chesapeake's preferred shares - currently boasting a dividend yield of 10% - instead of the common shares. But the greater upside is with the common. J.P. Morgan energy analyst Joseph Allman thinks Chesapeake is worth $53 a share, based on the underlying value of its massive oil-and-gas reserves.
So, why would someone be so bold yet so careless to purchase so many shares on margin? Now keep in mind we are speaking of very intelligent people here!
Question. Since CHK is the largest nat. gas producer in the country, why would they need to get a quick loan for 460 bill even though they have recently sold some of their properties for 1.75 bill cash deal to BP for Woodford rights in SE OK. 1.?? bill cash deal to BP for some of Fayetteville shale play in Arkansas? Between both assets sold they generated about 3 bill plus or minus........and they need more to stay afloat.
Now keep in mind I realize the fluctuation of natural gas prices have softened, but management should have that factored into their business model.
Why did Tom Ward leave a couple of years ago?
I am not so sure how transparent this company is.
I am not so sure this company stock price has seen bottom yet.
When is Q3 numbers coming out?
As with anything, you have to take advice with a grain of salt.
Sure, Cramer has been wrong, and he admits it, but he has been right also.
His rules for trading and trading strategies are right on.
You can't really believe anything on TV these days.
Have you noticed shortly after the gold going up advertisements come out in volumes, gold goes down.