Cheniere Energy (LNG) Stock Down on Chanos's Bearish Comments
NEW YORK (TheStreet) -- Cheniere Energy (LNG) - Get Report stock is slumping by 4.95% to $35.52 in late-afternoon trading on Wednesday, after short seller Jim Chanos told CNBC that he remains bearish on the company and on liquefied natural gas in general.
Investors are paying a "ridiculous price" for cash flows that are expected to be strong years from now, Chanos said, according to Barron's.
With regard to Cheniere Energy's relative valuation compared to other energy stocks with gas exposure, investors are "paying retail when everyone else is paying wholesale," Chanos noted.
More broadly, the current supply glut in liquefied natural gas will likely worsen, he contended.
"It's one of the few commodities that haven't rallied," and, "everybody is building capacity and demand is basically flat," Chanos mentioned, Barron's reports.
Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D.
Cheniere Energy's weaknesses include its generally disappointing historical performance in the stock itself, deteriorating net income and feeble growth in its earnings per share.
You can view the full analysis from the report here: LNG
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. 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.
