Typically, I like to find unique angles regarding today's hot investment topics. But for beleaguered Chesapeake Energy (NYSE:CHK), I don't have anything original to offer. No matter what your perspective, you can't ignore the dire situation the energy firm finds itself in. Even if you're taking the speculative bullish position - which of course very few are - everyone acknowledges the dangers of betting too heavily on CHK stock.Source: Casimiro PT / Shutterstock.com You're not going to find me adopting the contrarian position here. But you might find it curious that in the midweek session, CHK stock closed up by a double-digit margin. That's not necessarily a fluke occurrence.Just recently, oil prices on Thursday reached their highest point since March, according to a Reuters report. Indeed, "black gold" is presently enjoying a triple-pronged catalyst: lower-than-expected U.S. crude inventory, a so far successful implementation of OPEC-led production cuts, and growing demand as governments worldwide have started relaxing restrictions on people's movements.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBetter yet, Chesapeake's native U.S. market will likely provide further upside catalysts for oil prices. As you know, most states have started reopening their economies to various degrees. But a notable number of states are only implementing regional reopening initiatives. According to the New York Times, they include the western coastal states and New York.Currently, this is a huge drag on the broader economy. There's a big difference between Wyoming reopening - no offense to any Wyomingites - versus energy-hungry California. But it's also a longer-term opportunity for CHK stock and its ilk. * 7 Excellent Penny Stocks Ready to Roar As these core states open back up, a robust surge of demand will enter the market. Nevertheless, I don't think it will be enough to save Chesapeake Energy. CHK Stock Was Hurting Well Before the TroublesLately, I find myself getting frustrated with the mainstream media's attempt to manipulate math. We're hearing so much talk about certain industries recovering from their March lows and oil is no exception. But the media tends to isolate their comparisons to only the recently recorded troughs.If we compare oil prices to where they were in the beginning of the year, the situation doesn't look so much like a recovery, but instead a minor mitigation of a disaster. Go back several years and you'll start to see a trend. Oil prices peaked in the early 2010s decade and they don't appear to be making a comeback to those levels anytime soon.This is incredibly problematic if you're buying CHK stock on the hopes of a recovery. Yes, oil prices are recovering, but only against their recent lows. Against any other comparison within the last 15 years, you won't come away with an optimistic assessment.Even if oil prices substantively recovered, so what? The oil markets are a game of musical chairs. It's a reasonably safe bet that sector giants Exxon Mobil (NYSE:XOM) and Chevron (NYSE:CVX) will have a seat. CHK stock? That's not a gamble … that's throwing your money away.Right now, we're seeing oil stocks rise in anticipation of the consumer economy returning. For instance, more people flying would equate to higher oil demand. Click to EnlargeSource: Chart by Josh Enomoto But if you compare CHK stock to jet fuel prices, you'll notice that long-term waning demand for jet fuel has coincided with weakness in Chesapeake shares. So if travel demand "recovers," jet fuel will likely only recover to just before pre-pandemic levels.As you can see, that wasn't sustainable for CHK. Why would it be sustainable in the new normal? So Many Unknowns for ChesapeakeContrarians might point out that consumers will likely travel en masse in their personal vehicles rather than flying. Thus, investors shouldn't ignore the robust automobile traffic demand that's already rising across the U.S.I won't disagree with that. For many metropolitan areas in California, for instance, they looked like ghost towns. Therefore, some semblance of the old normal will represent a nice lift for energy firms.But specific to California, we don't know when powerhouse cities like Los Angeles will reopen. And the longer such cities stay shuttered, the more they risk severe economic damage.Let's not forget the big one - jobs. Over a nine-week period, nearly 39 million Americans filed for unemployment benefits. Current trends suggest that millions more will file over the next several weeks. Until most consumers feel comfortable about their employment situation, travel volume overall will remain deflated.Thus, while many catalysts are potentially available over the horizon, energy companies need patience to actualize them. But that's another problem, isn't it? Because the one thing that Chesapeake doesn't have is time.A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * America's Richest ZIP Code Holds Shocking Secret * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post Chesapeake Energy Is Just a Dead Cat Bouncing appeared first on InvestorPlace.
The petroleum sector is drowning in its own product, and these companies in particular are struggling to stay afloat.
Low oil and gas prices, along with overall production decline affect Chesapeake's (CHK) first-quarter results.
When this accounting term pops up, pay attention. Bankruptcy might be close behind.
Shares of Chesapeake Energy Corp. rocketed 32% in morning trading Friday, and have triggered five trading halts for volatility, as the oil and gas producer's stock bounced off the previous session's record low. Helping provide a lift was a 2.6% rally in crude oil futures, which helped lift the SPDR Energy Select Sector ETF by 0.5%. Chesapeake Energy's stock had plummeted 41% over the past four days, a four-day streak of record low closes, amid concerns over the highly indebted company's ability to survive the downturn in commodities prices and the economy as a result of the COVID-19 pandemic. Despite the bounce, the stock has plunged 93% year to date, while crude futures have shed 53% and the S&P 500 has lost 12%.
Bullish sentiment is slowly returning to oil markets as multiple OPEC members hint at deeper production cuts and global supply continues to go offline
The announcement follows last month's statement by the pioneering shale gas producer that it was in talks to line up bankruptcy financing and was in talks for a loan to run its operations through the court proceedings. Peers Whiting Petroleum Corp
Beyond Meat (NASDAQ:BYND) has fallen out of favor a few times over the last year. But after its most recent earnings report, BYND stock is back on investors' radar. Shares pushed through big-time resistance, and are set up for a possible breakout higher.Source: Shutterstock On May 5th, Beyond Meat reported earnings of 3 cents per share, surprising analysts with a 3-cent beat and a surprise profit. Moreover, revenue grew 141.4% year-over-year to $97.1 million and beat estimates by about $10 million.It was the quarter that bulls needed to see. All those pictures circulating online of fully stocked alternative-meat products no one seemed to want during the pandemic were put to rest -- at least for now. Shares ripped higher by 26% on the report, and are now higher by more than 37%.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSo, with all of that in mind, let's look at the charts before diving in. Trading BYND Stock Click to EnlargeBYND stock did not end 2019 on a good note, as Q4 was a rough ride. The first day of October was the stock's high for the quarter. Shares hit a high near $150, but ended the month just above $80 and continued to grind along $75 through year-end. * 7 Excellent Penny Stocks Ready to Roar However, once 2020 came around, shares erupted higher -- running from $75 to $130 in less than two weeks. This $130 area became resistance, though, stymying each rally in BYND stock until shares finally rolled over in February with the rest of the market.Fast-forward to May, and the stock was finally able to breakout over this mark on earnings and are now finding $130 as support. Coiling in the mid-$130s now, I think a move to $160-plus is possible. That is, assuming the overall market can hold up as well. If the market rolls over, it's possible that BYND stock will too.Short of that, though, this has all of the makings of a solid breakout. Earnings were strong and are in the rear-view mirror. Shares are through resistance and now holding that level as support. A move above $147.55 -- the May high -- puts $160 in play, followed by the 138.2% extension of the 2020 range, up near $168.Should the breakout fail, however, it puts the 200-day moving average in play. This level was resistance in April and was notably reclaimed on the post-earnings open in BYND stock. Breaking Down Beyond MeatWhen I look at a company's fundamentals, I immediately scope out four areas of interest. These readings give me a quick idea of whether the business is growing and what its financial health is like. Obviously, an exam goes deeper than just the surface, but this gives us a quick idea of what we're dealing with.The list includes: revenue, margins (both gross and operating), free cash flow and assets vs. liabilities.Broken down simply, revenue tells us whether the company is growing or not. That's pretty self-explanatory. Margins can be trickier, though, because contracting margins doesn't necessarily reflect an unhealthy company. But when they are expanding, it's a much-sought after catalyst.We like to see positive free cash flow, but again, there can be some grey area. Finally, weighing assets vs. liabilities helps us determine what type of balance sheet strength is presentIn weak companies -- like Chesapeake Energy (NYSE:CHK) or J.C. Penney (NYSE:JCP) -- we'll see most of these points paint a bleak outlook. In strong companies we'll see the opposite. So for BYND stock, the company does pretty good.Revenue continues to grow at a very healthy clip, going from $32.6 million in 2017 to $87.9 million in 2018 to $297.9 million last year. This year Beyond Meat is forecast to do more than $450 million in sales. Gross and operating margins have been expanding, too.Unfortunately, free cash flow is contracting rather than expanding. That's not the end of the world, although it's not ideal. However, the balance sheet is solid. Cash and short-term securities of $246.4 million crush current liabilities of $71.9 million, while total assets of $491.6 million outweigh total liabilities of $99.6 million.BYND stock is a bit expensive, but it's swinging from a loss to a profit with expanding margins and robust revenue growth.In any regard, though, the technicals look great. And over $130, Beyond Meat stock can continue to rise.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, he held no position in any aforementioned securities. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * America's Richest ZIP Code Holds Shocking Secret * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post A Big Breakout Is Brewing in Beyond Meat Stock Right Now appeared first on InvestorPlace.
Shares of Chesapeake Energy Corp. took a 22% dive toward a record low in active afternoon trading Tuesday, after CFRA analyst Paige Meyer slashed her price target to zero, citing her view that a bankruptcy filing was likely this year. Her previous price target was 30 cents, while she lowered her rating to strong sell from sell. The downgrade comes after the oil and gas company issued a "going concern" warning in its latest quarterly filing, citing volatility in commodities prices as a result the COVID-19 pandemic and the likelihood that a restructuring or reorganization will be needed given high debt levels. "We do not expect [Chesapeake] to be in compliance with its financial covenants beginning in Q4 2020, which would result in an act of default on the credit facility," Meyer wrote in a note to clients. "With a default on the credit facility, we believe other lenders are likely to call debt due as well using 'cross default' clauses." The stock has plunged 90% over the past three months, while crude oil futures have dropped 48.1% and the S&P 500 has given up 14%.
(Bloomberg) -- The smallest shale oil drillers have endured their fair share of pain in this spring’s energy collapse and, with ailing stock prices, analysts are finding it even tougher to cover the group.Early Friday, energy researcher Heikkinen Energy Advisors and investment bank Tudor Pickering Holt & Co LLC, both based in Houston, discontinued coverage of Centennial Resource Development Inc., Callon Petroleum Co., and QEP Resources Inc.Heikkinen also suspended ratings on other drillers, including Chesapeake Energy Corp., Goodrich Petroleum Corp., Gulfport Energy Corp., Montage Resources Corp. and Oasis Petroleum Inc.Stocks with market caps below $300 million and share prices under $1 are “generally uninvestable for the majority of our client base due to their small size and low trading liquidity,” Heikkinen told clients in a note. Tudor Pickering cited a “reallocation of resources and an internal refocus of our coverage list.”Oil & gas-focused research firms and investment banks are “pulling in resources,” said Tyler Hardt, a Florida-based portfolio manager at Pelican Bay Capital Management. An easy place to cut is “smaller-cap energy names that a lot of people don’t have hope for.”Bankruptcies could occur before any potential mergers and acquisitions, Hardt added.Centennial was among the exploration and production outfits touted as a potential takeout target in the past by firms including SunTrust and Tudor.‘Non-Consideration’At least one portfolio manager isn’t looking too deeply into the discontinued ratings. “Looking at these cancellations might actually be a non-consideration as an investor,” according to Josh Young at Houston-based Bison Interests LLC. He sees little correlation between stock performance and recommendations, adding that hedge funds still care about potential M&A targets even amid the carnage in the energy industry.At the same time, Heikkinen isn’t completely abandoning ship. The firm intends to follow these companies by “maintaining relationships with management, updating models and providing production and financial estimates.”(Updates with additional suspended ratings at Heikkinen)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Chesapeake Energy shares tumbled Tuesday after an analyst with CFRA slashed her price target on the oil and price producer to zero from 30 cents as the economic impact of the coronavirus cast "substantial doubt" on the company's ability to continue as a going concern. Analyst Paige Meyer also downgraded her rating on the Oklahoma City company to strong sell from sell. "CHK announced it will not have a Q1 earnings call to discuss its first quarter results," Meyer said in a note to clients.
Just because oil prices have started going up doesn't mean the worst is over for these companies.
Shares of Chesapeake Energy Corp. plummeted 16% in morning trading Tuesday, to extend losses into record-low territory after the oil and gas company re-issued a "going concern" warning in its quarterly financial filing in the previous session. The stock has now plummeted 68% in the past month, while crude oil futures have rallied 15% and the S&P 500 has gained 4.8%. The stock has lost 59% of its value since a 1-for-200 reverse stock split went into effect after the April 14 close. If the split wasn't effected, the stock would be trading at 5.4 cents.
Shares of Chesapeake Energy Corp. sank tumbled 9.2% in afternoon trading Thursday toward a fourth-straight record low, amid continued concerns over the oil and gas production company's ability to survive the current downturn in commodities prices and the effects of the COVID-19 pandemic. The stock has plummeted 41% this week, and has closed at a record low every day. On Wednesday, UBS analyst Lloyd Byrne had slashed his stock price target by 75% to $5, while reiterating his sell rating, citing the company's disclosure in its quarterly filing Monday that filing for bankruptcy was one of the options it was exploring as it suffered from a depressed commodities prices and a high debt load. On Tuesday, CFRA analyst Paige Meyer cut her price target to zero and her rating to strong sell. Thursday's selloff comes despite a 0.8% gain in the SPDR Energy Select Sector ETF , an 8.2% jump in crude oil futures and a 0.7% rise in the S&P 500 . Also this week, Energy Secretary Dan Brouillette reportedly said that any federal bailout of the oil industry wouldn't be intended for companies with that were overly indebted.
The S&P 500 closed barely higher, eking out a nominal gain on Monday as investors weighed new spikes in coronavirus infections with expectations that an economy crippled by mandated shutdowns will soon be re-opened for business. Technology and healthcare shares provided the biggest lift to all three major U.S. stock indexes and led the tech-heavy Nasdaq to its sixth consecutive advance. The blue-chip Dow lost ground.
Shares of Chesapeake Energy Corp. plunged 11.6% toward a record closing low in afternoon trading Monday, after the oil and gas company reinstated a "going concern" warning in its quarterly financial filing. The stock has lost 50.5% since a 1-for-200 reverse stock split took effect after the April 14 close. The company had implemented the reverse split to raise its share price enough to regain compliance with listing standards, but it was viewed as validation of investor concerns as the company struggled with falling commodities prices, high debt levels and the effects of the COVID-19 pandemic. If the reverse split had not taken place, the stock would be trading at about 6.5 cents. It has plunged 92.1% year to date, while the SPDR Energy Select Sector ETF has dropped 36.5% and the S&P 500 has lost 9.0%.
The number of cases of COVID-19 rose above 4.1 million on Monday, as South Korea reported a new cluster stemming from Seoul’s nightclub district and China reported four new cases in Wuhan, the city believed to be the source of the outbreak late last year.
If you own shares in Chesapeake Energy Corporation (NYSE:CHK) then it's worth thinking about how it contributes to the...
The monthly tally of defaults in the U.S. leveraged loan market has hit a six-year high, data from Fitch Ratings showed, as companies are either missing payments or filing for bankruptcy because of the fallout from the coronavirus pandemic. Data from credit rating agency Fitch Ratings, based on their U.S. Leveraged Loan Default Index, showed the total amount of defaults in this high-risk, high-yielding area of the debt markets at $12.6 billion in May so far, the highest since April 2014. The leveraged loan default total for the year to date is $33.3 billion, Fitch said.
It might not feel like it right now, as the coronavirus panic is roiling the stock market. But we're still technically in the longest bull market in history at 132 months and counting - a run that sent the best stocks of the group up by several thousand percent.That might not be the case for much longer, but nothing lasts forever. This bull market is destined to come to an end, like all the rest. But it's still worthwhile to stop and consider a run for stocks that shattered all longevity records.The great 1990s bull market (the previous title holder) lasted 113 months and saw the S&P; 500 advance by 417%. That market occurred during the dot-com era, of course, dominated by new technology stocks. The current bull market - which has seen the S&P; 500 advance by 339% - hasn't been quite as spectacular. But technology has been a big story here as well. Retail, medical devices and fintech also have a healthy representation among the biggest winners.Interestingly, energy stocks, which are under intense pressure right now, were underperformers in both epic bull runs.Today, on the 11th anniversary of the bull market, we're going to take a look at the 11 best stocks over that stretch, as well as the 11 biggest losers. To allow for a bigger pool of stocks, we expanded the universe to the full Russell 1000 Index - the 1,000 largest companies in America's equity market. SEE ALSO: 11 Defensive Dividend Stocks for Riding Out the Storm