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Drbob66... its an issue of trust... I don't trust the man and his team, and consequently, I don't trust their numbers either. OlegTutor trusts the numbers. I did the math when I originally bought the stock.. OlegTutor is absolutely right, the math looks good.
Dec 11 10:43 am
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All Comments by User 283977 »Chesapeake Energy Corporation Business Update Call Transcript [View article]
However, the observation provided by Joe Allman at J.P. Morgan that CHK management acted like a bunch of "drunken sailors" was a tipping point for me because it formed an image that put things into perspective - McClendon and his team as buccaneers …
McClendon is a gambler. He lost all of his CHK holdings on a single play, a decisive action. Another decisive action was the companies surprise universal shelf offering made late in the day before Thanksgiving, which resulted in a substantial sell off by many CHK stock holders who were concerned with the effects of such an offering on the stocks valuation. McClendon said they misread the negative effects such an offering would have on the market. In other words, they misread the odds on a gamble they made with other peoples money. These are the kind of people that can make you very rich or totally destitute on a single throw of the dice. So it all comes down to this.. . If you trust him, then buy the stock. If you don't trust him, then you should not trust the numbers either, and you should not buy the stock.