Oh, say it ain’t so. Chesapeake Energy Corp., buried deep in a 10-Q SEC filing on page 30 in early November, subtly raised a caution flag of “substantial doubt about our ability to continue as a going concern” if low commodity prices persist. The hint of the once-proud natural gas giant defaulting and potentially being sucked into a swirling vortex of bankruptcy prompted analysts to shout “Sell!” and investors to rapidly jump ship.
The company’s already battered stock price plummeted 57% over the course of a week, settling well below $1 per share for the first time since the last century.
Everybody, it seems, loves to cheer for Chesapeake. It’s a storied tale of a mighty champion that fell on hard times due to unforeseen forces mixed with self-inflicted largesse, yet with the hope for an epic, overcoming-all-odds comeback leading to a magnificent triumph.
Only we await the triumphant ending.