Chesapeake Insiders Continue Buying Spree; Trump Turnaround

Posted By Tate Dwinnell |  Subscribe in a reader | Comment 5

Beginning in May of this year, both the CEO and COO of Chesapeake Energy (CHK), snatched up just about every available share they could find.  On May 5th alone, both the COO and CEO bought nearly $3 million worth of shares in their company.  The very next day, they followed that up with total purchases of nearly $2 million and $1.5 million respectively.  The buying spree continued in June with the COO buying over 4 million worth and the CEO buying around 15 million.  The CEO upped the ante again in August by making several purchases totaling nearly 20 million!  On one day in September another 20 million purchase was made!  After a 3 month lull (time probably spent couting money), the insider buying by CEO Aubrey McClendon began again last week, with insider purchases totaling around $1.5 million.  The last time insiders made big purchases, it preceded a nearly 100% rise in the stock.  While a run like that again isn’t as likely this time around, the amount of insider buying clearly indicates the man running the show at Chesapeake sees more good times ahead for the stock. 

Currently it’s in the process of carving out a decent looking base and forming a handle.  Keep an eye on it for a breakout.

Donald Trump, master of self promotion, may soon have another reason to pat himself on the back with a turn around of his money losing casino operations. Providing most of the financing for the restructuring deal is Morgan Stanley and they must continue to believe that Trumps’ (“ no, I’m not calling him “the Donald”) casino operations will become profitable some day, because they have been very busy grabbing shares in the last couple weeks.  Since November 17th, the company has picked up nearly 370K shares for a total of around 6.7 million.  In addition, one director increased his stake in the company by 20% on November 21st

Note:  this is not a fundamentally superior company, but nonetheless an interesting story.. not to mention it has a  great looking stock chart (minus yesterday’s reversal from the breakout).

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Filed under Insider Buying by Tate Dwinnell

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Comments on Chesapeake Insiders Continue Buying Spree; Trump Turnaround »

December 21, 2005

catablast! research @ 6:50 pm

Nice double bottom for CHK – if it bounces off $32, I’m in.

Want to see the most beautiful chart you’ll see this year?

See DRI – we made 15% on this bad boy last week. All we had to do was buy at the pivot point on Monday’s open – we sold Friday after Darden smashed earnings 9 ways to Sunday.

great site, chief. keep it up!

December 22, 2005

Tate @ 10:37 am

Hi catablast! thx for your comment..

I don’t see the double bottom in the chart yet, but I suppose that right side could prove to be the middle peak of a large double bottom if the stock needs more consolidation time. I noticed last night that the CEO picked up another 90K shares and the COO picked up another 43K. It’s a big company, but maybe a buyout offer is in the works?

Yeah, that DRI chart is real purdy. I’m a big fan of charts with tight price action like that.. much more predictable.

Saw your post regarding FCBP, that’s good stuff. Great post. I’ve had that company on my watchlist for a couple weeks – great looking chart!

I’ll add your site to my links.

thanks for the love, tate.

anyways, keep on watching FCBP – Eggemeyer is single handedly driving that stock to new 52s.

December 27, 2005

Mathieu @ 8:57 am

Besides the chart, CHK is a pure play in the energy sector.

XTO and UPL have been receiving more attention lately (both made the IBD100) but I hold CHK and expect a breakout year.

CMG @ 10:22 pm

XTO is a natural gas play that’ll probably get acquired 2Q 2006…..