Chesapeake Energy Corp (CHK)

[ogbull]

I feel certain that CHK will not drop blow $3.90; I'd even bet it don't go below $4. Besides this advice is for novice. I don't want them to lose more than $25. To me, most new traders can afford to lose $25. Of course, if I used a stop loss on this stock, which I don't, I would set it at $3.50.

In my opinion, this is a long term play and prepared to set it out for 2-3 years if I have to, maybe longer if my investment goals are meet. On the other hand, if CEO Lawler don't get the share price to $15 by this time next year, I think I'll pull the plug. But I believe he will do it by Christmas. He is known in the business as one of the best production managers ever. I read a lot about this guy... all good.

I'm also very sincere when I say the CHK at $4.10 is the best buy I have ran into in 30 years of tradings. The lease acreage this company controls is huge. If gas prices run up to $3.00 this acreage will be worth a fortune. I just hope they don't have to sell too much acreage to pay down debt.

I watch it trade tick by tick for 5 days now. Friday's volume was only 50% of average. All the technical signals are point up on Monday. We should move up strong as long as oil and gas don't crash.

There is also a lot of producers closing down and the rig count is the lowest its been since the 1950s.

The 10-day weather report shows some hot humid days and cold damp nights so I think gas will be in good demand.

https://weather.com/maps/tendayforecast