Whilst the broader equity market saw a day of moderate chop, there was notable hyper strength in Chesapeake Energy (CHK), which settled +22.8% @ $3.39 (intra high 3.75). The news of the death of the ex CEO McClendon only adds to the uncertainty for what remains a company that looks set to disappear.
CHK had naturally battled higher - with the rest of the market, since the Feb'8'th low of $1.50, to the $3s.
This afternoon's news that the recently indicted (just yesterday) of the ex CEO Audbrey McClendon only adds to the tangled web that the company is now wrapped in.
Outlook - set to disappear
Regardless of the death of McClendon, the company remains in dire trouble... not least as Nat' gas prices look set to remain low across 2016.
Having imploded from $29.37 (July 2014), CHK looks set to disappear.... with the market already pricing it effectively as 'on the edge of bankruptcy'.
The only issue is how many months can the seemingly inevitable be delayed?