6 November Watchlist 👀
Today we are watching…
1. Chesapeake Energy (#chspeak)
From leading the shale boom to facing bankruptcy at any moment, Chesapeake Energy has fallen a long way. The company ruled the roost before 2008 as a natural gas pioneer, getting in early on fracking. However, the company has never been in control of its own destiny. It lives and dies by the price of natural gas, which, due to a US oversupply, is very depressed right now. Chesapeake tried diversifying, sure, but it completely missed the point by getting into Brent Crude. A mountain of debt once supercharged this firm to new peaks, but now it’s throttling it towards disaster. Chesapeake needs a miracle. Do you believe in miracles?
2. CVS Health Group (#cvs)
CVS Health, you’re up! Analysts are looking for $1.77 in profit per share on $63 billion in revenues, and the market will trade on any surprises. The pharmacy chain must have taken something strong this month as shares have risen 8%. The company also raised its full-year guidance, which is to say that it expects to make more money than investors assumed at the start of the year. The downside is that Wall Street may be getting ahead of itself. CVS Health has a complex business model and is under pressure in a reforming healthcare sector. Investors will be keen to hear more about that in today’s earnings release, as well as the impact of drug price changes.