With Today's Plunge in Natural Gas, It's Time to Rebuy Chesapeake Energy

Given today’s plunge, coupled with the warmer weather forecast and start of the shoulder season of weaker demand, MoneyShow's Jim Jubak is rebuying shares of the second-largest natural gas producer in the US with an initial target price of $19.
Back on February 3, I sold Chesapeake Energy (CHK)—my favorite stock for playing volatility in the price of natural gas—out of my Jubak’s Picks Portfolio.  The rally that had taken the share price from the December low of $16.71 to $21.01 was a bounce, I said, rather than the beginning of a sustained recovery. (See my post on the sell here.)
The stock closed even lower than that December level today, March 9, at $14.24. That’s near a new 52-week low for the shares and is closing in on the five-year low at $13.59.
I think it’s time to rebuy—maybe for another trade after a bounce, maybe for a more sustained recovery—we’ll see. Tomorrow, I’ll re-add these shares to my Jubak’s Picks portfolio. (more)

Please share this article