CHK - earnings were surprisingly good

Whilst the main market saw another day of minor chop, there was significant weakness in Chesapeake Energy (CHK) which settled -7.4% at $5.13. Q1 earnings were better than expected though, and the mid term outlook is unquestionably brighter. The first grand target remain the $12s... which is a long ways higher.


CHK, daily

CHK, monthly

Summary

First, see: http://www.chk.com/media/news/press-releases/Chesapeake+Energy+Corporation+Reports+2017+First+Quarter+Financial+And+Operational+Results+5+4+2017+ 

Also: https://finance.yahoo.com/news/chesapeake-energy-chk-beats-q1-130801836.html
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EPS of 23 cents was notably above expectations of 19 cents. Arguably, the increase in rev' to $1.4bn was the most impressive, and that was despite commodity prices seeing distinct weakness across Jan-Feb.

Technically, the stock is still a mess, and that is largely a result of ongoing weakness in the energy sector, that extends back to Dec'2016.


Speculative, but seemingly 'sound'.

Without question, Chesapeake is a particularly speculative stock. Its future as a listed company was in serious doubt in early 2016, but those dark days are now a faded memory.

CHK looks to have stabilised fundamentally, and so long as the economy just 'ticks along reasonably', another big push upward looks due. First soft target are the low $8s, and from there... the $12s, which have been a key level since late 2008.