Chesapeake Energy Corp (CHK)

[ogbull]

Why have major share holders not been loading up at these low prices? Why has volume been consistently 30% to 50% below normal during this recent crash?

The extremely low volume was a puzzle wrapped inside and enigma. Why were Chesapeake's major investors neither selling nor buying? One would think they would move one way or the other.

I hope I finally figured it out. They already knew and approved the allocation of 500 million extra shares. They knew there would be no bankruptcy to worry about so they did not sell. They ignore the crash.

The manipulators and shorts could have taken the stock down to as low as $2.00. So... the best move was to wait until the extra share allocation was announced and see how the market took it. If it went to $2, volume would shot to the moon and major share holders loaded up dirt cheap stock. Volume was still down 10 million shares.

Some new investors felt it was a negative; others felt is was a positive because it ensured the future of Chesapeake Energy. The share price dropped only 4 cents. No big deal.

So now the real worry is over. No bankruptcy and no credit crunch for at least 3-4 years. This gives Chesapeake all the time and room it needs to return to it former glory!

If I'm right, volume will be above average today and the rest of the week as money pours back into this stock.

I'm glad I'm long!