BrotherMaynard

Chesapeake Energy Unable to Rally Even After Positive News

RE: the first two comments

Never take advise from people that drop ad hominems and react with emotion. both of those traits have no business with investing.

CHK has some serious issues if nat gas continues its downtrend. Sub $5 and $4 start to inhibit the effectiveness of hedges. We're in the midst of the worst economic recession in decades. Keep in mind nat gas fell into the $2 rage during the last recession. And that recession wasn't even consumer led. Industrial production falloff is already muting the effects of the colder winter, coupled with serial overproduction by e&P's, like CHK, will mean heavy oversupply and much lower prices are inevitable. CHK also has debt covs that get triggered at certain ebitda/debt ratios...with lower prices, ebitda will be impaired...so unless you know when/how those covs are affected, please do not invest (short or long) in this stock. Its too risky and there are plenty of other cheap investments without the balance sheet risk.