CHK shareholders will vote April 13 to approve a reverse stock split ranging from 1-50 to 1-200. Hong Kong will have its own tech quartet as of next Thursday; Asian shares don't have the same euphoria as U.S. stocks (yet), and that's a good thing. View detailed financial information, real-time news, videos, quotes and analysis on Chesapeake Energy Corp. (OTC:CHK). It is no magic wand that will push the stock higher, although that often occurs. For example, with a 1 for 50 reverse split, every existing 50 shares will receive one new share of CHK stock. Don’t be fooled about this. CHK 4.90 11.48 (70.08%). The board will decide the actual amount. In addition, low futures prices for 2021 will severely limit its options to survive. The company is scheduled to report 2015 fourth quarter financial results before the market open Wednesday. Chesapeake made a big bet on finding oil in Wyoming’s Powder River Basin using fracking. Chesapeake Energy will likely end up in bankruptcy. Typically reverse splits are done for companies like CHK which are being threatened with delisting. So be careful about this. 430.00. Energy can be a volatile place to put your money, so here are some points to look out for with natural gas. If they didn't move after the Middle East burned, I don't know what they will do if the economy keeps slowing. © 1996-2020 TheStreet, Inc., Last Post: 10/31/2020 8:01:48 PM - Followers: 366 - Board type: Free - Posts Today: 5 This board's subject is fundamental and technical discussion about Chesapeake Energy Corporation, CHK. It costs Chesapeake Energy roughly $8 million to drill and hydraulically fracture each of its wells in Wyoming, compared with about $6 million in the Eagle Ford shale of South Texas. Trading stocks that one knows are worthless -- and that even have declared bankruptcy -- because they are rising is a 'fool's errand.'. Log In Receive full access to our market insights, commentary, newsletters, breaking news alerts, and more. Shares of the natural gas producer tanked earlier this month on bankruptcy concerns, even though Chesapeake Energy released a statement assuring investors that it has no plans to pursue bankruptcy. This is a turnaround play that is highly likely to not turn around. Quatar Petroleum is expected to make a final investment decision on a liquified natural gas facility near Sabine Pass, Texas. You can view the full analysis from the report here: CHK. CHK has a market cap of about $4 billion, which combined with that $10 billion in debt gives it an enterprise value of $14 billion. On March 16, CHK management hired two well-known restructuring firms, Kirkland and Ellis as well as Rothschild, according to Reuters. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month. The Wall Street Journal chronicled the background to Chesapeake’s latest predicament in an article on Jan. 1, 2019. Great traders are the folks in the shadows nailing small and medium-sized winners on a consistent basis. 7 Restaurant Stocks to Buy for a Big Rebound. Despite Chesapeake’s futures hedging for 2020, its debt maturities in 2021 will cause problems. Follow Real Money's Wall Street Pros to receive real-time investing alerts. TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon.
Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D. Chesapeake Energy's weaknesses include its deteriorating net income, generally high debt management risk, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself. * The market's leadership is particularly narrow The market is doing its best to confuse everyone. Powered and implemented by FactSet Digital Solutions Group. This will also make operating without a restructuring solution very difficult. Now the company still has $9 billion in debt. Like us on Facebook to see similar stories, Oregon becomes first state to decriminalize small amounts of drugs, including heroin, Chipotle struggles with staffing as coronavirus cases rise. The problem, though, was that drilling in the heterogeneous rocks that are frequently laced with faults made drilling more expensive. However, if no rating change occurs, the data on this page does not update. NEW YORK (TheStreet) -- Chesapeake Energy (CHK) - Get Report stock soared by 19.50% to $2.39 in Monday's trading session after financial blog Seeking Alpha argued that the company is a "prime takeout candidate.". More importantly ... Hertz and Chesapeake remind me of the time I bought a bunch of common stock of Memorex-Telex -- and you can guess how that played out.
Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author. TheStreet Ratings updates stock ratings daily. The evidence is pretty clear.
Things may pick up in the afternoon -- here is how to play it and what sectors to be wary of. Natural gas related companies offer much better plays for alternatvie-fuel minded investors. A recent Seeking Alpha article by WYCO Researcher skillfully analyzes Chesapeake’s current debt situation. Chesapeake Energy (CHK) stock surged today on buyout speculation. This market is broken, and here's the good news and bad news about trading in it right now. Mutual fund data provided by Valueline. Chesapeake Energy (CHK) stock surged today on buyout speculation. Little did they know that oil prices, then down 40% from their peak, would continue to crater. Chesapeake had over $9.4 billion of debt on its balance sheet as a result of these developments. While some wild speculation reversed and bankrupt names fell back to earth, Nasdaq ran up higher -- but don't bet a top is forming yet. Then the price of oil tanked even further, as we know. Chesapeake Energy Corporation. Debt holders will likely demand not only majority control but likely supermajority control. If the restructuring team manages to avoid bankruptcy, which seems highly unlikely, the next most likely thing to occur is the following: a massive dilution of shareholders. Chesapeake Energy has been laying off employees, closing offices, canceling drilling projects and restructuring debt to better contend with tumbling natural gas prices, Bloomberg adds. The reverse split is needed to retain Chesapeake’s stock listing on the New York Stock Exchange. Chesapeake spent $4 billion on an ill-timed acquisition of Wildhorse Resource Development Corp. On top of that the company came with $1.1 billion in additional debt. The data does update after 90 days if no rating change occurs within that time period.
Quotes delayed at least 20 minutes for all exchanges. The enterprise is headquartered in Oklahoma City, Oklahoma. It's a process that involves harvesting gains by repeatedly writing call options against stocks steadily in decline. 225 Liberty Street, 27th Floor, New York, NY 10281. Bloomberg also recently chronicled Chesapeake Energy’s attempt at the end of February to raise even more debt to work out of its situation. The piece describes Chesapeake’s switch from a focus on natural gas production to shale oil just as the prices of oil had fallen 40%. The market misread the narrative that there was a cyclical recovery. Moreover, there are numerous tranches of debt on CHK’s balance sheet. Mark Hake runs the Total Yield Value Guide which you can review here. The author shows that CHK’s massive $9 billion in debt will likely not be able to be handled by the company in 2021. These stocks are not for the faint of heart and the risk-averse. 0.00, 7.77 / Except as otherwise indicated, quotes are delayed. The market is disconnected from reality. CHK focuses on discovering and developing large and geographically diverse resource base of unconventional oil and natural gas assets onshore in the United States. The issue is not CHK's debt, but whether it can service the debt, and the company's robust hedge book and the recent uptrend in natural gas pricing CHK show that it should be. And the bubble bursts: Chesapeake Energy Corporation reopens -70% just now. That equity spike had to come back to earth. It has little chance of working its way to paying it down without a restructuring. © 2020 TheStreet, Inc. All rights reserved. Fibocall: Selling zones to Know I would SCALE ... Tuesday Morning Fibocall for 11/3/2020: Please ... SPX (Long-Term View) Our first long-term support... Jim Cramer: Why You Shouldn't Expect the Market to Get Clobbered Again Monday, Comstock Resources (CRK) Q4 Earnings Top on Ramped-Up Output, Chesapeake downgraded to Sell from Neutral at MKM Partners, Chesapeake price target lowered to $0 from $1 at MKM Partners, Chesapeake (CHK) Q4 Earnings Beat Estimates, Revenues Miss, Chesapeake Tumbles Toward Oblivion With Investors Losing Faith.
Action Alerts PLUS is a registered trademark of TheStreet, Inc. Chesapeake Energy Is Headed Towards Bankruptcy.
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These 3 stocks continue benefit from the misplaced pessimism of energy sector shorts.
But for now, the U.S. Fed is in full easing mode and the liquidity boost should show up in the economic data over the next few months. * In nearly every market cycle, speculation in low-quality, virtually valueless and literally bankrupt stocks, marks a market top * Statewide "shelter at home" orders coupled with the Fed's liquidity injections and commission-free trading (on most p... We have reached peak 'Greater Fool Theory' -- and here's how to move forward. Although this will be challenging in the short term, it may be an opportunity for large American companies to acquire assets.
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