Market Overview

Why JC Parets Has Been Watching Chesapeake Energy

Why JC Parets Has Been Watching Chesapeake Energy

JC Parets is a weekly guest on #PreMarket Prep, a daily trading idea radio show hosted by Joel Elconin and Dennis Dick. Tune in to the daily broadcast live Monday-Friday at 8 a.m. ET here.

JC Parets is the founder of Eagle Bay Capital and discussed why he has been paying close attention to shares of Chesapeake Energy Corporation (NYSE: CHK) with a "well defined" low in March, which was a key Fibonacci extension.

Related Link: JC Parets: It's Hard To Find Something Not To Like In Facebook

Shares of Chesapeake Energy traded at new 52-week lows of $12.45 during Thursday's trading session and were lower by more than three percent by Thursday afternoon.

"Here we are just under $13 and change [during Thursday's pre-market trading session], if we can get above the March lows, I think we can get a margin squeeze," Parets said.

What Makes Chesapeake Energy Special

The trading pro noted that shares of Chesapeake Energy have the third largest short interest among all companies in the S&P 500. He also noted that there are very few analysts with a Buy recommendation and he would be a buyer only if shares can trade above Wednesday's highs of around $13.45.

"If we can stay above there, I'd be all over it," Parets concluded.

Just A Note...

Fadel Gheit of Oppenheimer downgraded shares of Chesapeake Energy to Perform from Outperform.

The analyst suggested that the company will report losses of $544 million this year, only to worsen to $833 million next year. In addition, the company is expected to realize a free cash flow deficit of $2.1 billion this year and $2.7 billion next year.

Image Credit: Public Domain

Posted-In: Benzinga #PreMarket Prep Dennis Dick Eagle Bay CapitalAnalyst Color Technicals Exclusives Trading Ideas Interview


Related Articles (CHK)

View Comments and Join the Discussion!

Latest Ratings

TORCCantor FitzgeraldDowngrades3.0
CIDMCanaccord GenuityMaintains1.5
TDGCanaccord GenuityMaintains620.0
DLPNCanaccord GenuityMaintains1.6
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

Why The Eagle Bay Capital Founder Has No Reason To Be In Nike

AUD/USD Little Higher