Uh-Oh... Aubrey McClendon Is Buying Chesapeake Energy (CHK) Stock Again
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In an SEC filing after the close, Chesapeake Energy (NYSE: CHK) CEO Aubrey McClendon disclosed the purchase of 15,000 shares on 3/8 at $32.65.
The purchase, while small, is notable as it appears to be Mr. McClendon's first open market purchase of Chesapeake Energy since the stock nearly whipped him out in 2008.
In the fall of 2008 Mr. McClendon was forced to sell nearly all of his shares of common stock in the company over a three day period in order to meet margin calls.
Before the 2008 disaster, McClendon was a huge buyer of the stock but it was mostly on margin.
It's almost a guarantee that Mr. McClendon didn't buy the latest 15,000 shares on margin, but we hope for his sake that he doesn't get the leverage bug again.
Mr. McClendon is not alone in buying Chesapeake Energy stock, as Carl Icahn has recently accumulated a massive 5.8 percent stake in the oil & gas concern.
The purchase, while small, is notable as it appears to be Mr. McClendon's first open market purchase of Chesapeake Energy since the stock nearly whipped him out in 2008.
In the fall of 2008 Mr. McClendon was forced to sell nearly all of his shares of common stock in the company over a three day period in order to meet margin calls.
Before the 2008 disaster, McClendon was a huge buyer of the stock but it was mostly on margin.
It's almost a guarantee that Mr. McClendon didn't buy the latest 15,000 shares on margin, but we hope for his sake that he doesn't get the leverage bug again.
Mr. McClendon is not alone in buying Chesapeake Energy stock, as Carl Icahn has recently accumulated a massive 5.8 percent stake in the oil & gas concern.
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