Chesapeake Energy (CHK)
Click to Enlarge Shares of Chesapeake Energy (CHK) look ready to roll down and out of a trading pattern that goes back to August and had returned prices to levels not seen since the mid-2011, energy-led inflation scare.
Chesapeake reported better-than-expected top- and bottom-line results for Q3, but investors no longer seem interested in the company’s plan to sell assets (nearly $4 billion worth through the end of September) to raise liquidity and reduce debt.
With an unfilled gap near $23.50 a share, a drop to that level (which also represents the top end of the March-August trading range) is in order. That should equate to a nearly 10% drop from here.