Chesapeake Energy Corp (CHK)

[Lbrtarian]

"The net income has significantly decreased by 979.8% when compared to the same quarter one year ago, falling from $425.00 million to -$3,739.00 million".

Aside from the fact that Kramer (and, by extension The Street.com) has a less than stellar track record, the above statistic is grossly misleading since it takes into account a write-down of assets, i.e. a one-time charge. Absent that, the Company actually beat expectations last quarter ($.11 vs $.04) and remains cash-flow positive.

I don't expect a significant turnaround any time soon, but will remain patient as long as necessary. Note that the stock is currently trading ~$7 below its 200-day moving average and if you believe in the notion of "regression to the mean" you'll sit back, breathe deeply and wait for the price to coalesce with the averages. I expect that the Company will defend the dividend which has the effect of (slowly) reducing ones basis in the stock in the meantime.