Probably margin calls on CEO McClendon. He bought over 9million shares in the past year at a much higher price
Aubrey's stock position is not the issue. CHK is SUPER leveraged, ( check their miniscule cash position ) and with the credit markets "frozen" are unable to re-finance their debt . . . My guess is that the market place smells that they are in trouble, and at the very least will have to make yet another Secondary offering.
My understanding is that their debt is not due until 2013. They have massive cash flow and the ability to defer expenses if they get in a bind.
I remember trading this name when it was at $75 just three months ago. I had seriously thought about plunging big into this name when it dropped into the 30s as I felt it was one of the best names in the energy sector. Glad I stayed away. Still, this would be one of the first stocks I buy if/when we rally.
The reason they are heading down is also the spot price of nat gas that is in the $6.75/mmbtu range today. This is a low price. Also as oil keeps trending down will close the spread and put downward pressure on nat gas also.