Chesapeake Energy: Is This A Hot Stock?
Natural gas company Chesapeake Energy (CHK) has been UP %16.43 this year, and has performed much better than its peers Encana (ECA) and Range Resources (RRC). Earlier this week, Chesapeake reported a profit that easily topped analysts’ forecasts: This was largely due to increased production and a rebound in natural gas and oil prices.
The investors though, are still cautious with the stock: Apparently the hesitation comes with the doubt on whether the company’s turnaround is for real. After the last year disaster with it’s CEO, the Oklahoma City-based company is in the process of selling assets to improve its cash position and debt load.
Now that the former chairman and CEO Aubrey McClendon is out of the picture, the company seems to be on solid feet and this stock seems to be a good pick: The only question is if investors are going to put the psychological effect of McClendon behind soon and reward the company for its performance.