Pickens began dumping Chesapeake shares during the first quarter, when his Dallas-based BP Capital Management LP fund sold 71,000 shares, or 12 percent of its stake, according to a May 15 filing. The remaining 499,055 shares were sold by May 10, when Pickens said he no longer owned any stock.
Two things to note about Picken's Statement:
“We got out of the natural-gas stocks and Chesapeake was one of them,” Pickens said on CNBC yesterday. Even after selling the shares, Pickens said "..people shouldn’t bet against McClendon despite potential conflicts of interest that have caused shares to plunge and triggered Internal Revenue Service and Securities & Exchange Commission probes.
1. "..people shouldn’t bet against McClendon despite potential conflicts of interest that have caused shares to plunge and triggered Internal Revenue Service and Securities & Exchange Commission probes."
This is like saying people shouldn't have abandoned the Titanic because of hole in the side and it was sinking. And BTW - Chesapeake Energy hit a new 52 week low this morning (Thurs 5/17/12) at $13.62/share.
2. “We got out of the natural-gas stocks and Chesapeake was one of them,” Pickens said.
Ignore the part about Chesapeake and focus on "We got out of the natural-gas stocks..." and keep in mind T. Boone Pickens is the founder and pusher of the PICKENS PLAN.
This is the face of Natural Gas, the flag waver for "breaking the oil habit", horn tooter for fleets of NG vehicles zooming across our nation's highways and he "...GOT OUT OF NATURAL GAS STOCKS"???
The obvious answer is he's not making money or enough money on natural gas stocks. If this is the reason, then what does is say about his support for American Natural Gas for Americans? Is this no longer a priority, thrown aside because his real priority is to make more money for himself?
Why would Mr. Natural Gas dump ALL natural gas stock? Where's his confidence in the natural gas and his own plan for that matter? The Pickens Plan touts natural gas as bridge fuel to take us from using oil to using wind/solar. Does it mean Pickens has burned the bridge?