If there has been one manager that has made serious cash on his investments in his own company’s stock, it is Aubrey McClendon of Chesapeake Energy Corporation (NYSE: CHK). But “has” is just what it sounds like. A press release from the company today noted that Mr. McClendon involuntarily sold substantially all of his Chesapeake shares over the last three days in order to meet margin loan calls.
- Chesapeake Drilling For Cash?
- Legislation Risks to Nat Gas
- This was Jim Cramer’s Big Nat Gas Play
- Its secondary offering of 20 million shares
According to our most recent Edgar data, McClendon’s personal holdingswere listed as more than 33.4 million shares. That was also as ofSeptember 30, 2008. On September 30, this stock was trading at$35.86. Shares closed today at $16.52 and had traded as low as$12.00. This stock is back to levels not seen since late-2005 toearly-2005. If you want further evidence of the carnage, its 52-week high is $74.00.
While Mr. McClendon said he plans to rebuild his ownership position in the coming months and years, hedid comment, “I am very disappointed to have been required to sellsubstantially all of my shares of Chesapeake. These involuntary andunexpected sales were precipitated by the extraordinary circumstancesof the worldwide financial crisis. In no way do these sales reflect myview of the company’s financial position or my view of Chesapeake’sfuture performance potential…..”
Jon C. Ogg
October 10, 2008
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