Chesapeake Energy Takes Its Head Out of the Sand

There's a good reason why Chesapeake Energy shares were moving down after the board decision, in contrast to other natural gas stocks on Thursday: It was the bare minimum acknowledgment of how bad the situation is and how far the board has let the situation go before stepping in.

It's not the first time that Chesapeake has conceded a battle, either: a year ago, Chesapeake agreed to hire an independent compensation consultant to review McClendon's compensation package as the clock ticked closer to an annual meeting where shareholders were expected to make a major issue of the CEO's pay package. Indeed, the more things change at Chesapeake, the more they stay the same.

As the situation stands now, good luck calling a bottom.

-- Written by Eric Rosenbaum from New York.

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