Market Getting Realistic Again?
- BTU approaching lows
- EXXI hovering at 50ma
- Spot crude completed head & shoulders?
- June 2016 crude put in series of lower highs
- ACI approaching lows
- LINE approaching lows
- CCC yield turning higher
- JNK weak after putting in lower high
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Why Chesapeake Energy, Tenet Healthcare, and JinkoSolar Slumped Today
Chesapeake Energy fell 10% as investors in both the stock and bond markets continued to lose confidence in the energy company due to continued weakness in crude oil and natural gas prices. Several of Chesapeake's short-maturity bonds fell by double-digit percentages on Thursday, and investors in the credit-default swap market saw prices on five-year swaps rise to 53.5%, suggesting a substantial likelihood that Chesapeake won't be able to meet all of its debt obligations in the future.
Chesapeake is far from the only energy stock to suffer from falling oil and gas prices, and the massive impairment charges that have resulted from those declines. Yet with analysts pointing to already substantial debt levels, and the possibility of drawing another $4 billion on a secured credit facility, Chesapeake's status as a junk-rated borrower is making many investors think twice before buying its stock.
Poor CHK.
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