Speculating - Chesapeake Energy (CHK)

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sd323232
Posts: 525
Joined: Thu Jun 21, 2018 4:45 pm

Re: Speculating - Chesapeake Energy (CHK)

Post by sd323232 » Sun Jun 28, 2020 7:22 pm

7eight9 wrote:
Sun Jun 28, 2020 7:02 pm
Chesapeake Energy, a Shale Pioneer, Files for Bankruptcy Protection
HOUSTON — Chesapeake Energy, a pioneer in extracting natural gas from shale rock across the country, filed for bankruptcy protection on Sunday, unable to overcome a mountain of debt that became unsustainable after a decade of stubbornly low gas prices.
https://www.nytimes.com/2020/06/28/busi ... e=Homepage
well, and thats the end of this story....

finite_difference
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Re: Speculating - Chesapeake Energy (CHK)

Post by finite_difference » Sun Jun 28, 2020 7:44 pm

Makaveli wrote:
Tue Nov 12, 2019 9:28 am
To hold myself accountable -

I am normally robotic about investing and have never held an individual security. I gambled on Chesapeake Energy (CHK) due to a variety of factors, not to be disclosed.

First tranche cost basis came in at $2.7/share and then doubled down @ $2.02/share. Current price sits at $0.81/share after CHK posted a notice to the SEC that it may have trouble ahead.

Good news is that I followed all the rules, less than 5% of total portfolio. No re-dipping. I'm prepared for it to go to $0. There also appears to be complete fear for this stock (perhaps rightfully so).

Time will tell how this story plays out.
If it goes to $0, will you invest 5% of your portfolio in something else?

Because I would recommend limiting it to 5% of new deposits. Otherwise you can quickly deplete your entire portfolio.
The most precious gift we can offer anyone is our attention. - Thich Nhat Hanh

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Makaveli
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Re: Speculating - Chesapeake Energy (CHK)

Post by Makaveli » Mon Jun 29, 2020 8:44 am

finite_difference wrote:
Sun Jun 28, 2020 7:44 pm
Makaveli wrote:
Tue Nov 12, 2019 9:28 am
To hold myself accountable -

I am normally robotic about investing and have never held an individual security. I gambled on Chesapeake Energy (CHK) due to a variety of factors, not to be disclosed.

First tranche cost basis came in at $2.7/share and then doubled down @ $2.02/share. Current price sits at $0.81/share after CHK posted a notice to the SEC that it may have trouble ahead.

Good news is that I followed all the rules, less than 5% of total portfolio. No re-dipping. I'm prepared for it to go to $0. There also appears to be complete fear for this stock (perhaps rightfully so).

Time will tell how this story plays out.
If it goes to $0, will you invest 5% of your portfolio in something else?

Because I would recommend limiting it to 5% of new deposits. Otherwise you can quickly deplete your entire portfolio.
No re-dipping means no re-dipping. It's about time this company went belly up. The unfortunate news is the exec cash compensation. $25MM in a year the company's market cap was $116MM. Lately I have lost faith in the system.

rich126
Posts: 1565
Joined: Thu Mar 01, 2018 4:56 pm

Re: Speculating - Chesapeake Energy (CHK)

Post by rich126 » Mon Jun 29, 2020 12:09 pm

Makaveli wrote:
Mon Jun 29, 2020 8:44 am
finite_difference wrote:
Sun Jun 28, 2020 7:44 pm
Makaveli wrote:
Tue Nov 12, 2019 9:28 am
To hold myself accountable -

I am normally robotic about investing and have never held an individual security. I gambled on Chesapeake Energy (CHK) due to a variety of factors, not to be disclosed.

First tranche cost basis came in at $2.7/share and then doubled down @ $2.02/share. Current price sits at $0.81/share after CHK posted a notice to the SEC that it may have trouble ahead.

Good news is that I followed all the rules, less than 5% of total portfolio. No re-dipping. I'm prepared for it to go to $0. There also appears to be complete fear for this stock (perhaps rightfully so).

Time will tell how this story plays out.
If it goes to $0, will you invest 5% of your portfolio in something else?

Because I would recommend limiting it to 5% of new deposits. Otherwise you can quickly deplete your entire portfolio.
No re-dipping means no re-dipping. It's about time this company went belly up. The unfortunate news is the exec cash compensation. $25MM in a year the company's market cap was $116MM. Lately I have lost faith in the system.
Many years ago I had stock in this company. Can't recall if I made/lost money on it. I do recall that the CEO (McClendon) was not someone I trusted so I think that was why I bailed out (and he may have been removed a long time ago). And actually that CEO died in a car crash in 2016.

the way
Posts: 261
Joined: Sat Oct 26, 2019 6:00 pm

Re: Speculating - Chesapeake Energy (CHK)

Post by the way » Mon Jun 29, 2020 12:27 pm

rich126 wrote:
Mon Jun 29, 2020 12:09 pm
And actually that CEO died in a car crash in 2016.
He ran his car into the side of a concrete bridge the day after he was indicted by a grand jury. His body was burned beyond recognition and they had to use dental records to identify it. So maybe "died" needs to be in quotes!

rich126
Posts: 1565
Joined: Thu Mar 01, 2018 4:56 pm

Re: Speculating - Chesapeake Energy (CHK)

Post by rich126 » Mon Jun 29, 2020 2:44 pm

the way wrote:
Mon Jun 29, 2020 12:27 pm
rich126 wrote:
Mon Jun 29, 2020 12:09 pm
And actually that CEO died in a car crash in 2016.
He ran his car into the side of a concrete bridge the day after he was indicted by a grand jury. His body was burned beyond recognition and they had to use dental records to identify it. So maybe "died" needs to be in quotes!
Thanks. I knew it was something weird but by that time I was out of the stock for quite some time.

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