Chesapeake Energy Corp (CHK)

[Smilin_B]

CHK's shareprice is entering the "momentum" space due to its low price. We've seen how low these debt laden oil stocks can go (literally single digit pennies).

Do you feel CHK may have to R/S the shares? The reason I ask is because many institutional investment houses are prohibited from purchasing shares of a sub $5 stock based upon the rules of their charter. Even though Chesapeake Energy used to be an investment grade stock, it's a shame that some of these large institutions are forced to sell based upon the rules they themselves instituted. If and when Chesapeake Energy shares increase over that $5 level, providing it is not due to a reverse split, I will be all over this security.

I also have the same obvious concerns many of you do concerning CHK needing to file bankruptcy protection at some point if things don't turn around. I haven't really been following the saga here so if anyone has any links to analyst estimates or someone following this company's financial issues, that would be awesome. I'm slowly accumulating stocks in the natural gas and crude oil space, but taking a huge level of risk in purchasing the ones that may have no alternative other than to file bankruptcy. In those cases, bondholders are always first in line and the common shares normally get cancelled. So for me, it's "risk on" right now and only taking on what I can afford to completely lose.