Shares of oil and gas producer Chesapeake Energy (CHK - Free Report) fell hard on Wednesday, closing down over 37%.
Chesapeake has been one of the hardest hit energy stocks in recent weeks, as crude prices plunge and the coronavirus pandemic has curbed demand. In just the past three months, the stock has plunged roughly 80% as of Tuesday.
In order to remain financially viable, Chesapeake announced a 1-for-200 reverse stock split, which means that for every 200 shares of CHK investors currently own, they’ll get only one share back.
The move ensures that CHK will keep trading on the New York Stock Exchange.
However, recovery will be difficult for Chesapeake even after a reverse split. Low oil prices is making it hard for the company to generate revenue, and it is on a tight deadline to pay down hundreds of millions of dollars in debt.
In just the past three months, the stock has plunged roughly 80% as of Tuesday
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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Shares of oil and gas producer Chesapeake Energy (CHK - Free Report) fell hard on Wednesday, closing down over 37%.
Chesapeake has been one of the hardest hit energy stocks in recent weeks, as crude prices plunge and the coronavirus pandemic has curbed demand. In just the past three months, the stock has plunged roughly 80% as of Tuesday.
In order to remain financially viable, Chesapeake announced a 1-for-200 reverse stock split, which means that for every 200 shares of CHK investors currently own, they’ll get only one share back.
The move ensures that CHK will keep trading on the New York Stock Exchange.
However, recovery will be difficult for Chesapeake even after a reverse split. Low oil prices is making it hard for the company to generate revenue, and it is on a tight deadline to pay down hundreds of millions of dollars in debt.
In just the past three months, the stock has plunged roughly 80% as of Tuesday
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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