Chesapeake Energy (CHK), ended the week on a strong downward note, -4.7% @ $27.64, which made for a net weekly net decline of -7.3%. This was an especially stark reversal, considering the stock began the week with the highest level ($30.48) in over two years.
*I bailed on CHK this past Monday morning, whilst the main market was pushing upward. My exit of the $29.80s looks pretty good now, although at the time, I was somewhat annoyed, since a mere few hours later, the stock was in the $30.40s.
It would seem CHK is still wrestling with a dispute with Michigan state, over the auction/bidding outcome of some exploration rights.
CHK, still good?
As a company..and sector, I still favour CHK, but I intend to leave it alone until the late summer/early autumn.
If the main market does see a multi-month rollover, CHK will be considerably lower. This will be the case regardless of oil/gas prices, and probably..even of the outcome of the ongoing legal battle.
Best case - from a buying perspective, $20. The mid/low teens seem unlikely, even if sp'1625/1575 - which remains my 'best bear case' for this year.