I Sold My 1000 Shares Of Chesapeake Energy (CHK) On 7/21/2015

Chesapeake today announced that they are discontinuing their dividend in order to save money. This is probably the correct (and necessary) thing for them to do but it was the last straw for me. I’m just tired of looking at this stock go down and sometimes you have to just get out, which is what I am doing. 

You can read why I bought the stock in the first place but suffice it to say, nothing has gone right in the energy sector since I bought CHK and I am not willing to stick around any longer for it to turn around. I held on to the stock too long (I know that now) and I have reached my pain threshold which is what sometimes has to happen. In fact, even if Chesapeake makes an eventual comeback, it will probably take more time than I am willing to give it. 

I bought the stock at $21.65 and sold it today for $9.63 for a loss of $12,032. This is a short term loss as I have held the stock less than one year.

CHK

4 Responses to “I Sold My 1000 Shares Of Chesapeake Energy (CHK) On 7/21/2015”

  1. Karin says:

    Hi Bruce,
    Well I too recently came across your site and I must say I am impressed with your down to earth dialog. The content is precise, knowledgeable and a very easy read. Being in my 50’s and just starting to personally take charge of my finances is daunting so I really appreciate your site. I opened a TD account and hope to do well. Do you ever take advantage of Options strategy for additional income? If so do you include it on the site? Thank you..

    • Bruce Alan says:

      Hi Karin,
      I don’t do anything with options. I’m very old school (buy, hold, sell) with most of my time spent trying to figure out what companies I should buy stock in next and how long I should hold on to what I have. I know others do a lot with options and you hear about them on TV all the time from the pundits but I have done just fine without using them. Good luck!

  2. Bajrang says:

    Hi Bruce,
    I came across your website today and find it really informative and interesting. I like the part that you have your portfolio live and explain the reasons behind your trade.
    I cant imagine how hard it must have been to let CHK go…specially with a loss of 12k… i wonder what advise you would have for a smaller investor. I am just starting to get into investing at about the age of 34… I know you would say it is late..but I guess better late than never… I have a cash pool of 10k to start with…and probably can add about 400 everymonth…
    Another question – CHK is down further… would this be a right time if you have an horizon of lets say 4-5 years.
    Appreciate your response!

    • Bruce Alan says:

      Bajrang,
      I have no intention of buying CHK again so that is my answer. I generally don’t buy any stock back after losing and being so wrong the first time.
      I would recommend buying 5 to 10 stocks with your $10,000 but not all at once. The market may fall again and I would want to have money available to buy if that happens. So, I would carefully select one stock at a time and buy it and maybe put your money in the market over the next six months to a year.
      Thanks for reading!

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