Carl Icahn: ‘I Would Not Sell Chesapeake'

Despite the overhang and negative sentiment, billionaire investor Carl Icahn says don’t sell Chesapeake.

Icahn believes in the long-term the price of nat gas will bounce and he fully believes Chesapeake is poised to benefit.

“Aubrey (McClendon) is a very bright guy and he’s put a lot of great assets together,” says Icahn on CNBC's Fast Money. “The problem was they gambled too much in buying them and they have a cash gap. Now, they have to cut expenses but I think they can.”

And Icahn feels good about the corporate governance.

“There’s a new board – I put on a director. I can tell you, the shareholders control the company now.”

All told, Icahn sees opportunity.

“I think natural gas in the next few years will go quite a bit higher and Chesapeake will be there to take advantage of it – I would not sell Chesapeake. I would be against selling this stock.”

Trader Pete Najarian shares the enthusiasm. He thinks all the downside in the wake of the SEC scrutiny has passed. “And with Carl involved, this thing has upside,” says Najarian.

Posted by CNBC's Lee Brodie

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Trader disclosure: On July 2, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Dan Nathan is long BAC; Dan Nathan is long C; Dan Nathan is long JPM; Dan Nathan is long XLF; Dan Nathan is long IBM; Dan Nathan is long WMT; Dan Nathan is long RIMM; Dan Nathan is long SBUX; Dan Nathan is long BAC JULY 6 PUTS; Dan Nathan is long C JULY 28/25 PUT SPREAD; Dan Nathan is long JPM JULY 32/28 PUT SPREAD; Dan Nathan is long XLF JULY 14/12/10 PUT FLY; Dan Nathan is long IBM JULY 190/180 PUT SPREAD; Dan Nathan is long WMT JULY 67.50 PUTS; Dan Nathan is long RIMM JAN 20 CALLS; Dan Nathan is long SBUX AUG 50/45; Joe Terranova is long VRTS; Joe Terranova is long MCD; Joe Terranova is long PNC; Joe Terranova is long USB; Joe Terranova is long TCBI; Joe Terranova is long SBUX; Joe Terranova is long MNST; Joe Terranova is long PXD; Joe Terranova is long WFM; Joe Terranova is long NXPI; Joe Terranova is long NKE; Joe Terranova is long UPL; Joe Terranova is long AAPL; Joe Terranova is long EMC; Joe Terranova is long LPX; Pete Najarian is long AAPL; Pete Najarian is long AAPL CALLS; Pete Najarian is long BAC CALLS; Pete Najarian is long C; Pete Najarian is long INTC; Pete Najarian is long SBUX; Pete Najarian is long FB; Pete Najarian is long NKE CALLS; Brian Kelly is long QQQ; Brian Kelly is long TLT; Brian Kelly is short British Pound

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