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CHK: McClendon Sells Out!
- Thread starter Landis82
- Start date
Quote from ralph00:
Maybe, maybe not. My guess is McClendon's sales are what was driving down the price. Sell the rumor, buy the news. Look for CHK to outperform on Monday (I won't say go up, because the market might crumble around it!).
Be careful CHK also has a lot of debt. Growth will slow dramatically and with nat gas at $6/mmbtu income is dropping also.
http://www.reuters.com/article/marketsNews/idINN1025653120081010?rpc=44
SAN FRANCISCO, Oct 10 (Reuters) - Leading U.S. natural gas producer Chesapeake Energy Corp (CHK.N: Quote, Profile, Research, Stock Buzz) cut another $1.5 billion from its capital budget for the next two years as part of measures to increase cash as credit dries up.The announcement on Friday came just weeks after the company cut its capital expenditure budget for drilling through 2010 by 17 percent, or $3.2 billion, due to a plunge in natural gas prices and concerns about a U.S. market surplus.
Quote from The Kin:
I guess company tanks on Monday?
Don't think so.
Lot's of damage already done. There is an investor conference on Monday in an attempt to present some visibility regarding raising cash and curtailing E&P budgets. The stock price actually traded UP after hours on Friday before settling back a bit.
Quote from ralph00:
Maybe, maybe not. My guess is McClendon's sales are what was driving down the price. Sell the rumor, buy the news. Look for CHK to outperform on Monday (I won't say go up, because the market might crumble around it!).
I would tend to agree.
With no cash on the balance sheet, it's simply a trading vehicle now, with the prospect of a potential suitor. From here on out, the price of NG will be very important, which usually makes a seasonal low in Oct.
Quote from Port1385:
31.5 million shares sold at an average price of 16.9. Most of his selling was in the last few days.
This will be a nice bounce play.
did you see the four or five days around the 22 level? Then the last day, in retrospect, was 12,900 sold.
The following day the stock hits 12,a nd he's crushed. Hope is a bad strategy.
And don't forget. He owes taxes. Whew. The great equalizer.