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.