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There's a growing sense that "much more needs to be done" to restore confidence in Chesapeake...

  • Friday, April 27, 2012, 10:49 AM ET
    There's a growing sense that "much more needs to be done" to restore confidence in Chesapeake (CHK -2%) than only letting the Founders Well Participation Program expire. Analysts say the board should separate the chairman and CEO positions or even fire the whole bunch, but "given the litany of historic indications and most recent indications, this board appears to be incapable of doing that."
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This news story has 9 comments:

  •  
    ask why. :)
    27 Apr 2012, 10:54 AM Reply Like
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    Keep Aubrey! My shorts are making tons of mulla!
    27 Apr 2012, 11:24 AM Reply Like
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    Where is Karl Ichan when you need him?
    27 Apr 2012, 11:55 AM Reply Like
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    Perhaps you could find Mr. Icahn if you spelled his name correctly.
    Amazes me that the NY State Comptroller is whining now that the stock price has plummeted. Perhaps he should watch his portfolio more closely. The stock was already in the toilet before the recent "revelations"( which have been disclosed for years). I am not defending Aubrey and his clueless board but I got out when NG went into a freefall and it looked like they would not be able to continue to unload acreage to fund their capital needs.
    27 Apr 2012, 12:04 PM Reply Like
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    I think you are correct that activists are going to go after this name in the coming months. May be time to go out on a limb with a small position.
    27 Apr 2012, 02:43 PM Reply Like
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    I'll bet CHKs accountants are as nervous as a cat in a rocking chair factory. So many issues and a company leveraged to the hilt both on and off the bal sheet. A CEO who is basically the oil patch version of Jon Corzine, and a BOD that eats out if his hand. Yikes. Meanwhile, due to the fall in gas prices they are also having to firesale assets they paid dearly for with borrowed money. These guys are essentially having another 2008 right now, but this time, instead of Aubrey having borrowed tons of money to buy the company's stock he has borrowed it to buy these well interests. The Board must be learning disabled.
    27 Apr 2012, 10:04 PM Reply Like
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    Wonder what Jim Cramer is doing looking at this? He was reccomending CHK to everyone last year.
    28 Apr 2012, 01:49 AM Reply Like
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    The bigest problem they face is that they either have to drill to hold the leases by production or let it expire. Expired leases like cancelled checks aren't worth much. Anyone who buys shares in this company is buying shares in nothing. There is no equity that is not already signed over to it's creditors or counterparties. In many ways this company operates like a bank in that they continue to be intertwined through what I can best describe as counterparty agreements that shareholders simply do not understand. CHK will stand as the counterparties take control, but the common shareholders won't in the long run.
    28 Apr 2012, 10:59 AM Reply Like
  •  
    I hold KFN that invested in a partnership project with CHK and GE, I wonder if this will negatively impact this investment.
    28 Apr 2012, 11:20 PM Reply Like
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