Charles Petredis

Avoid (Natural) Gassy Stocks

The article is good but the only flaw with your thinking is the chart you have of the market v. natural gas. In this example of course natural gas will underperform during the time period as it is the traditional bottoming season for prices as weather warms up. This type of move (not the exact numbers but this direction) has been priced into the curve year after year and it should come as no shock to those familiar with the energy markets.

That being said, the Chesapeake call is a great one. The stock is still suffereing from CEO Aubrey McClendon's margin call debacle and on a NAV basis the shares are worth probably 40% less than what they should be even with natural gas at these levels.