The CHK perspective
Updated
I like Chesapeake energy for the longer term investment. Energy has been lagging compared to other sectors over the last few years and there is tremendous potential in good energy companies. CHK is historically cheap and could do very well if energy takes off. However, I suspect more pain ahead for oil with the potential for an enormous flush.. perhaps below 2016 levels.. Regardless of that, I think oil goes bonkers high over the next 6-7 years. I'm looking at holding some longer term USO call options (if we see a deep oil flush) as well as a few good oil/energy companies.. CHK is one of those in my opinion. CHK could disappear.. there's always risk in investing but I'm accumulating shares of CHK sub .48 but I wouldn't be surprised to see .20 either. We have some chart history that demonstrates these exact type of moves- From current levels, a 20/share run would equate to a 45x (4500%).. a move back to the 2008 ($69 per share) high would be 16000+% (160x). It can go to $70+ or it can go to 0.. This is a long term trade that has some risks so I'm only willing to put in what I'm willing to lose.
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a lot of volume (top indicator) volume trend in linear moving average: Note
on the lower trend- Is this it? Note
oil hit 27 this morning. That's incredible. I can't decide whether it goes for another flush deeper now or into another market drop mid-year. Long term I think this is extremely bullish on oil. Natural gas also has an incredible amount of upside. Come on CHK.. YOU CAN DO IT!Note
looks like a giant bull crab to me... what a discount in oil yesterday. Note
I will not sell out- I added in fact. Bring me that 43x move, please. Note
this could be a 5-7 year trade.. Like I've said. I'm riding to the moon or off the cliff.Note
CHK I actually turned a profit- Big moves ahead but watch this divergence.. Note
divergence pushing down. I have to be honest and tell on myself for selling more than half of my CHK holdings Friday when it hit 39-40. I will be adding back slowly if it continues downward. I believe very strongly there are good things ahead for CHK over the coming years. My long term bullish outlook hasn't changed despite the extremely ugly outlook on energy the last month. Note
"potential bankruptcy filing.." ? I'll believe that when I see it. I'll take more lower Note
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it's been a good week Note
I impulsively sold in the big spike from 40-80 in 3 different chunks. I took almost all off the table and I'm glad I did. My cost basis was under 17 because I was patient easing into position into the drops. I believe in CHK long term and have started easing back in yesterday & today. I have a set amount of risk tolerance for this stock because I believe it's worth the gamble. Discipline is a requirement and patience never hurt anyone either.
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