I need to make a correction. Apparently CHK is not directly lending the money to McClendon. The biggest lender however is also a big lender to the company, so that raises a new set of questions, such as is their business with CHK contingent on loaning McClendon vast sums? People will rationalize it and say it doesn't hurt shareholders, but that's not true. First, these are company assets he is buying, so there should be an outside appraisal and Board approval for each transaction. Then they should all be disclosed to shareholders, because it is part of his comp just as surely as stock options. third, he is using stock that was probably given him through incentive options to fund this. So the shareholders get ripped off twice, first when he gets the options, second when he uses them to take a share of a corporate asset. Finally, it's not like his reckless borrowing hasn't hurt sharehodlers badly before. He suffered a forced margin liquidation in the afermath of the 2008 meltdown that tanked the stock. Of course, the company later bailed him out by buying his "art" collection and I suppose giving him even more shares. Shareholders weren't so lucky. Aubrey has had a decent record of adding value to the company through clever hedging. Actually, he takes credit for it. It is probably analysts who come up with the hedge program and he just signs off on it. Whatever, but there are plenty of other gassy E&P stocks to invest in where you don't have to wade through this kind of shit.
========== Good points. Tek wise, CHK still could downtrend to $9.99/+; most of the trends are down. Carl Ichan may help, on the bullish side. Not a prediction