Chesapeake Energy’s (CHK) CEO bought $43 million of stock on July 15, while Monsanto’s CEO sold $18 million on the same day.   Monsanto stock has double since last July, though it was considerably higher than the price landed by the CEO.  The CEO of Chesapeake, a company that has obviously soared as a result of the rise in oil prices, could have easily dumped his stock and made a fortune. Well, he also bought $12 million back in June.   Both of these CEOs have for the most part been in the right place at ther right time, but Chesapeake’s CEO is speaking volumes about how he feels about his business. He hasn’t taken anything off the table, rather he has invested a lot of money at a time when you would think he would sell…I have to believe that it is a BUY signal.  If a CEO buys stock, it isn’t always a positive sign, since to a certain extent there is an almost requirement that he or she buys to send a confident message to the market.  But, in this case I would say that the CEO means business and is not just trying to mollify the street.  While Monsanto’s CEO sale isn’t necessarily a SELL signal, I don’t like it. CEOs will say they have planned investment sales at various stages as part of estate planning, but it is a bunch of hogwash.  They are typically just trying avoid selling at a time when they might know something (which of course is all the time).

I like Chesapeake, just like I recommended going with Gaylord Entertainment yesterday based on billionaire Robert Dowling taking a big position.

Track CEO and officer major buys and sells at:

http://www.trackthepros.com/categories.php?category_id=658

http://www.trackthepros.com/categories.php?category_id=661