I lost a ton of money holding this thing last year, sold my $50,000 position in the 19's....well at least it was worth $50,000 at one point, by the time I sold it was low $30,000's.
The reason why I invested was because I believe in nat gas for the long term, I liked the book value, I liked the positioning domestically and I liked the potential to switch to oil. As I touted my position, the shorts told me to look at the debt situation and I did but stayed long.
Here is why I have since gone short, 1 reason: I believe the valuation of their assets in todays market and going forward is insufficient to tackle their debt load. No more elaboration needed.
One other thing to think about, Mclendon is likely leave this company in the worst shape possible. He is a cocky individual with the mindset that if he can't do it, no one can. More skeletons in the CHK closet may come out as we near his departure.