Some trends in the energy stock trade have a history of consistency, and ones of those trades has been Chesapeake's proven ability to generate positive trading momentum for its shares by announcing deals that raise cash to work off the mountain of debt it has amassed -- the oft-quoted twice the level of debt of Exxon Mobil (XOM) for a company 27 times smaller than the world's largest oil company.
It looks like the low natural gas price environment and the ceaseless talk of a "one handle" futures quote (down into the $1s on the one-month futures contract) as being fated in the energy market, may now hold the trump card when it comes to Chesapeake's lack of market momentum.
Natural gas was down another 3% on Tuesday to just above the $2 mark, a day after
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts