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BREAKING NEWS FROM CNBC’S KATE KELLY: BLACKROCK HAS INCREASED STAKE IN CHESAPEAKE DRAMATICALLY IN LAST TEN DAYS

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Video: Breaking News: BlackRock Now Has 4-5 Million Shares of Chesapeake

KATE KELLY: SO INTERESTING WE ARE SEEING A LITTLE BIT OF A SNAP BACK HERE ON SORT OF A BULLISH SENTIMENT FOR CHESAPEAKE BLACKROCK WHICH OWNED ROUGHLY ONE MILLIONS SHARES IN CHESAPEAKE ABOUT TEN DAYS TO TWO WEEKS AGO HAS RECENTLY BEEN AGGRESSIVELY BUYING SHARES OF THE COMPANY THEY NOW HAVE 4 TO 5 MILLION SHARES OF CHESAPEAKE I AM TOLD AND THAT MEANS THAT THEY ARE AT LEAST SORT OF A THREE TO FOUR PERCENT STAKEHOLDER IN CHESAPEAKE AS A COMPANY THEY WERE ALREADY IN THE TOP TEN BUT THEY ARE PROBABLY MOVING UP A NOTCH OR TWO WITH THIS. THIS OF COURSE COMES ON THE HEELS OF NEW DETAILS ABOUT CARL ICAHNS PROPORTED PURCHASES OF CHESAPEAKE STOCK COMING WEEKS AFTER DAVID FABER SAID THAT ICAHN WAS FEELING OPPORTUNISTIC TOWARD CHESAPEAKE THOUGHT IT WAS UNDERVALUED AND MIGHT MAKE A PLAY HERE. SO YOU ARE SEEING AT LEAST TWO VERY SIGNIFICANT INVESTORS WHO HAVE A GOOD DEAL OF RESPECT IN THE MARKETS SAYING THEY THINK THERE MIGHT BE SOME UPSIDE OPPORTUNITY HERE. YOU KNOW JUST TO GET INTO THE DETAILS A LITTLE BIT WHAT I AM UNDERSTANDING IS THAT THE PERMIAN ASSETS SALES WHICH IS ONE OF THE BIG PLAYS THAT CHESAPEAKE IS TRYING TO MONETIZE RIGHT NOW ARE EXPECTED TO GO WELL THEY ARE WORTH A LOT. THE OTHER THING IS THAT ALTHOUGH IT IS A HIGHLY INDEBTED COMPANY THERE IS CONFIDENCE THAT THEY CAN WORK TO PAY DOWN THE DEBT OR RENEW THEIR DEBT FACILITIES AS NEEDED. NEGATIVES FOR THE STOCK A DOWNSLIDE IN OIL CHECK THAT BOX RIGHT BUT ALSO THAT THE ASSET SALES WOULDN’T GO WELL AND THAT SEEMS TO NOT BE THE CASE SO FAR. NOW HAVING SAID THAT INVESTORS ARE SOMEWHAT SHRUGGING OFF THE NOISE AROUND AUBREY MCCLENDON THE CEO AND CHAIRMAN AT LEAST FOR THE MOMENT UNTIL HE IS REPLACED AS CHAIRMAN THEY ARE SAYING REVOLATIONS THAT HE PARTICIPATED IN THIS WELL PROGRAM THAT SOME PEOPLE LOOKED ASKANCE AT AND THAT HE RAN A HEDGE FUND FOR A NUMBER OF YEARS ON THE SIDE ARE KIND OF A DISTRACTION WHEN YOU ARE LOOKING AT THE STOCK FUNDAMENTALS NOW THERE’S A LOT OF DISAGREEMENT ABOUT THAT SOME PEOPLE THINK IT IS QUITE A HUGE PROBLEM MARIA BUT AT LEAST A COUPLE OF INVESTORS RIGHT HERE THINK IT IS NOT GOING TO DISSUADE THEM FROM TRYING TO MAKE SOME MONEY ON THE NAME.

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