Chesapeake Energy: A Cold, Fish-Eye Investment Analysis
By Ray Merola:Chesapeake Energy Corp (CHK) CEO Aubrey McClendon is back in the news involving more corporate/personal shenanigans. This time, the issue is that Mr. McClendon has been taking out loans to finance a somewhat unique company perk that permits him to stake a 2.5 percent interest in Chesapeake's wells; evidently, he has been using those same stakes as collateral for more loans. The reported three-year total may be as high as $1.1 billion. These loans were never disclosed to Chesapeake shareholders. Chesapeake stock fell over 5 percent today on high volume. At one point the shares were down 10 percent from the previous days close.
Chesapeake Energy Price and Volume 5 Days
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Source: bigcharts.marketwatch.com/ Angry media pundits and investors piled on. Investigations and accusations are flying. For the record, I believe rightfully so. However, my purpose here is not to debate McClendon's actions or CHK corporate governance. ItComplete Story »