This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

The Five Dumbest Things on Wall Street This Week: May 4

1. Aubrey's Apology

Shares of Chesapeake Energy (CHK) may keep sinking, but as for the company's CEO Aubrey McLendon, well, he continues to top himself.

The stock fell almost 15% on Wednesday after the company reported first-quarter results that failed to meet analyst expectations. Chesapeake's adjusted earnings were 18 cents per share, a dime less than Wall Street's average estimate, as a result of a glut of natural gas in the market.

Nevertheless, while the company failed to clear the Street's bar, good old Aubrey once again exceeded our Dumbest expectations by putting on yet another stellar -- and stupid -- performance.

McClendon, who was stripped of his chairmanship by the board Wednesday, apologized "for all the distractions" caused by media reports about his wheeling and dealing. Last week it was discovered that McClendon had personally borrowed over a billion dollars to cover his investments in the company's wells, with some of those loans coming from a group that was also planning to buy Chesapeake assets.

That was pretty bad considering Aubrey's history of sketchy financial transactions. However, the most recent Aubrey allegation may be even worse. Reuters reported this week that he was involved in a private hedge fund and was trading oil and natural gas contracts for four years while simultaneously running Chesapeake.

Lord Almighty, where does that guy get the energy? We thought he merely collected antique maps as a hobby, but it turns out Aubrey was really spending his downtime acting out his George Soros fantasy.

Aubrey attempted to shoot down all the reports, of course, telling analysts on the conference call, "Your mother told you not to believe everything you read or hear for good reason, and that's certainly been the case for the past two weeks."

True enough Aubrey. But she also told us that where there is smoke, there is fire. It looks like the SEC is following that logic as well as the company confirmed late Thursday regulators have launched an informal inquiry into both Chesapeake and McClendon. Stay tuned.

--Written by Gregg Greenberg in New York.

Stock quotes in this article: GRPN, SBUX, HUSA, HLF, GMCR, JOE, NWS, CHK 
Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 +2.54 0.14%
NASDAQ 4,095.5160 +9.2910 0.23%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs