Would You Go Against an Icahn? CHK

Billionaire Carl Icahn senses when a stock is undervalued. He is well known for buying stocks when nobody else wants them. Chesapeake Energy, Icahn's latest position, has underperformed other natural gas stocks considerably over the last year. Natural gas has taken a huge hit, off from its highs by more than 50%. However, Chesapeake Energy (NYSE: CHK) is still making a profit and has also increased its oil exposure. The stock is trading at less than 9 times this year's earnings at the current approximate $26 price. Investors believe that next year will be much better for natural gas. With the United States lagging the rest of the world in switching to the greener fuel, demand is picking up for the now valuable commodity. Chesapeake, which has large natural gas assets may greatly benefit from any rise in natural gas. Some believe that $7 natural gas is not far away. This is a hefty gain for a commodity that trades at $4.