Watch stocks you care about
The single, easiest way to keep track of all the stocks that matter...
Your own personalized stock watchlist!
It's a 100% FREE Motley Fool service...
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Just a matter of hours after investors cheered the move of Chesapeake Energy (NYSE: CHK ) stripping Aubrey McClendon of his chairmanship, the mood changed. A disappointing earnings report pushed shares 13% lower today and analysts started piling on as well.
So what: Chesapeake's loss fell to $71 million, or $0.11 per share, in the first quarter. On an adjusted basis the company reported a profit per share of $0.10, but analysts had expected $0.34 per share in earnings. Cash flow estimates were also slashed nearly in half to $4.4 billion-$5.3 billion.
Now what: Analysts also downgraded the stock, adding to the sell-off today. On top of all that, there are reports that McClendon also ran a $200 million hedge fund that traded the same commodities the company produces. The bottom line here is that Chesapeake is a mess. As I pointed out yesterday, the company's stock looks fairly attractive but I would wait for this McClendon mess to play out before buying in. His problems seem to be getting worse by the day.
Interested in more info on Chesapeake Energy? Add it to your watchlist by clicking here.