Chart Patterns and TA

[gfp927z]

The CHK chart looks interesting for a bounce. If it can make it thru 2.00 then next target should be the falling 50 MA at 2.11, then next targets 2.25 and 2.50 -



>>> Chesapeake Energy Stock Could Rebound as Debt Falls, Analyst Says


Barrons

By Avi Salzman

June 28, 2019


https://www.barrons.com/articles/chesapeake-energy-stock-could-rebound-as-debt-falls-analyst-says-51561742109?siteid=yhoof2&yptr=yahoo


Chesapeake Energy , a pioneering Oklahoma-based oil and natural gas producer, has struggled under a substantial debt load for years. But Morgan Stanley analyst Devin McDermott thinks the company is in good position to pay down that debt and benefit from asset sales in the months ahead.

McDermott resumed coverage on the stock with an Overweight rating and a $2.75 price target, more than 40% above current prices. Chesapeake Energy stock (ticker: CHK) was up 2.4% to $1.93 in midday trading on Friday. It was trading over $5 a year ago but has slid more than 60% since. Investors have been skeptical of the company’s decision last year to buy Houston-based oil producer WildHorse Resource Development Corp. Its largest holder has also been selling stock.

Chesapeake has historically been known more for its natural gas production, but it’s been shifting more toward oil, which McDermott thinks will drive better margins at the company—and means it deserves a better valuation than peers. Natural-gas prices have been hurt in recent weeks because the summer started with mild weather. There’s also been anxiety about a supply glut.

McDermott predicts that the company will produce negative annual free cash flow until 2023, when it will just about break even. While he acknowledges the company’s leverage is still relatively high, he writes that “we see a clear strategic plan to further reduce debt, which we believe the market is underestimating.”

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