Chesapeake Energy

I'd been watching the nightmare that was natural gas stocks for some time when, earlier this month, Exxon announced the purchase of XTO Energy for a hefty premium to its current stock price.  Overnight, many of the floating stories, the what ifs, the possibilites about natural gas were given a stamp of reality.  We jumped on Chesapeake Energy as we thought it would be a major benficiary of the new outlook for NG.

I bring this up now as I heard a very interesting take on CHK just now:  some observers were noting that there had been very little insider activity in CHK.  No buying, especially.  One talking head was asking if that was a troublesome sign.  The answer he was given was no; in fact it could be an encouraging sign--at least regarding a potential sale of the company.  If, indeed, insiders know that a buyer is sniffing around, you can be sure that their legal department has told them in no uncertain terms NOT to take any action--buying or selling.  So perhaps this 'quiet' is an indication that a deal may be in the works.  We'll see soon, I expect.