The Media Has Confused Investors About the Problems at Chesapeake Energy
I'm a disgruntled Chesapeake shareholder. But while I'm disgruntled, I will remain a shareholder and actually think adding Chesapeake Energy (CHK) at current stock prices is a pretty attractive proposition.
Like most Chesapeake shareholders I'm disgruntled about having a Board of Directors representing me that seems uninterested in actually representing me.
And I think it is pretty clear that this Board is not interested in representing me. Because if this Board was representing me, it would not have allowed the CEO of the company to be part of a hedge fund trading in the very commodity that Chesapeake produces. If it was representing me this Board would not have approved a $12 million antique map purchase from the CEO. If this Board was representing me it would be not have allowed the CEO to borrow hundreds of millions of dollars from a company that is also financing Chesapeake.
You are probably wondering why, if I am so disgruntled do I think adding shares of Chesapeake is an attractive proposition?