You Would Have to Be Crazy to Own Chesapeake Energy
So shares of Chesapeake Energy Corp are down over 8% today on the news that the company loaned CEO Aubrey McClendon over ONE BILLION DOLLARS, secured by his stake in the company. Here's the news on Marketwatch.
Let me be clear: if you own this thing for anything more than a short-term swing-trade or something, you are f^cking crazy. You would be crazy to buy this thing before this semi-criminal is gone. Chesapeake famously won the @footnoted context for Worst Footnote of 2009, for a transaction whereby it paid the CEO $21 million for his vintage map collection.
I have said multiple times on this site, and so has Alyce Lomax and others, that this company is engaged in the worst sort of crony, share-holder disrespectful behavior to its shareholders. You object to Google's C share? Google gives you no control, but its founders respect the company, and respect shareholders. This guy founded the company (if memory serves), but treats it, and you, as his personal piggy bank.
I don't care HOW much you like natural gas at these levels. I LOVE natural gas (aside, any good natty picks are welcome). Jeffrey Gundlach of Doubleline thinks its the best investment you can make right now. But not here, not now, not with Aubrey McClendon. Booooooooooooo.