Dow Up Another 140
Markets were generally up in overseas trading. The Hang Seng led the day in gains with over 511 points, turning around a slow period and advancing nicely.
Chesapeake Energy (CHK) Steps on the GasIn a move that has some investors puzzled, Chesapeake Energy (CHK) actually raised their ongoing guidance in the face of falling oil prices. The company had an excellent quarter relative to the sector, although it was nothing to write home about. The decision to raise guidance was announced over an investors call reporting quarterly earnings earlier today.
The move is an odd one because the Energy Minerals sector as a whole is really struggling. Over the past three trailing months, Energy Minerals has contracted by nearly 18%. For any company to be so bullish in outlook under these conditions is a surprise.
Whether or not Chesapeake meets its goals, the fact is that it’s taking a big gamble by raising expectations. What’s good for the stock in the short term -- and this announcement was very good in the short term -- may not be tenable over time. In trading today, Chesapeake Energy added 14% of value and closed out the day at $9.00 per share.
TAP) was up big today on news that competitor Annheuser-Busch (BUD) wants a piece of the action. The news came early in the trading day today that Annheuser-Busch would tender a buyout offer to the smaller brewery. Whether or not the offer will be accepted has yet to be seen, but it wouldn’t be surprising to see the two struggling brewers join forces. Shares of Molsen were up by 14% on the news.
Published on Sep 16, 2015By Aaron Phillips