Skip to main content

Chesapeake Energy's shares have fallen back lately.

Nonetheless, the oil and natural gas company has recorded major successes, namely a significant reduction in leverage and expenses.

Chesapeake Energy is expected to reach FCF neutrality in 2018, if not sooner.

Since Chesapeake Energy's sights are set on growth again, the reward-to-risk ratio looks good after the latest drop in price.

Oil and natural gas drilling company Chesapeake Energy Corp.'s (NYSE:CHK) shares have fallen back lately on the back of profit taking, and the drop in price is an opportunity to buy into Chesapeake Energy as the company sets its sights on growth again. Chesapeake Energy has made major progress in the last several years in terms of reducing expenses and has significantly reduced leverage. Recovering price realizations translate into Free Cash Flow upside, which in turn makes today's reward-to-risk ratio compelling.

Chesapeake Energy's shares have dropped in the last several months, falling from a range of $7-8 in December to a range of $5-6 in April, and profit taking is to blame.

The energy company was a speculation object for much of 2015 and 2016 when investors bet that Chesapeake Energy would go out of business. Chesapeake Energy's share price fell to a low of $1.50 in 2016, but investors quickly jumped into the trade when it became clear that energy prices had bottomed out, and that the company had a good chance to survive. And that trade has paid off handsomely: Since February 2016, Chesapeake Energy has become a multi-bagger...At least for those investors that gobbled up some shares on the cheap when nobody wanted to invest in the energy sector.


Popular posts from this blog

Sensex Fall More Than a 100 Factors, Under Nifty 9950, Pressure on Pharma Stocks

The fall in the stock marketcontinues to this present day. On Tuesday, after the closure with the autumn, the market began on Wednesday with the decline and fall.The Sensex has misplaced greater than a hundred factors in the initial business. The Nifty reached under 9950 at the moment Sensex 31903 and Nifty fell one hundred ten points to alternate at 9,945, down 33 points. these days many of the drive is being considered on pharma sector.
Sharp Fall in Small Shares..
In today's business small shares are seeing a sharp decline. The smallcap index is set 1 percent down. The mid-sector sector index is down 0.9 percent. within the midcap index, Berger Paints has 4 per cent, Tata chemicals 3.6 per cent, GMR Infra is buying and selling 3.7 per cent down. in the smallcap index, RSW 10%, HDIL 8.6%, Gammon Infra dropped 7%. Pharma Stocks Crash, Metallic Continues to Upward Thrust.
In the Trading of the pharma sector, the largest decline in stocks is viewed on Wednesday. The Pharma Sector In…

Invest in these stocks for higher return in long term

new Delhi. There is no shortage of stocks in the stock market, which has given returns to investors many times. If at the current levels you are also looking for the next multi-bagger stocks, then know which stocks can be the next multi bagger stock according to the experts. Government will decide next multi-bagger policy   According to Jagdish Thakkar, director of Fortune Fiscal, the signs of government policy will determine that in the next few years, there may be a sharp bounce in the sector. According to him, the next multibagger can be identified by the government's most ambitious schemes and everyone will be identified with power plans. The Government's Affordable Housing Scheme will provide direct benefits to real estate, housing finance companies and non-banking finance companies. At the same time, the Infra sector is also expected to benefit from the development of the cities. Along with this, reforms in the power sector will benefit the companies like PFC, NTPC. Accord…

Indian Equity Markets are More Likely to Open Higher on Monday

Indian equity markets are more likely to open higher, following sure cues prevailing among Asian friends. The SGX Nifty, which used to be buying and selling at 9,787, up by means of 61 factors, is suggesting a favorable opening.

Nifty50 index has instant toughen positioned around the degree of 9,680 and the subsequent major make stronger is prone to are available around the stage of 9,630. On the best way up, 9,780 is a key resistance house, and if Nifty holds above this stage, it's going to extend its rally as much as the extent of 9,830.

Key outcomes for the day: Apollo Hospitals, Jain Irrigation, Coal India, Grasim, IDBI bank, JK Tyres, NBCC and Tata power.

Again dwelling, Indian markets extended their shedding streak for a fifth straight session on Friday. The Nifty index plummeted 109 factors to settle at 9,711 at its five-week low and the Sensex settled at 31,214 with a loss of 318 points.

After witnessing promote-off in the previous buying and selling session, america stocks re…