Eagle & Beagle
Here's a little piece of stock market trivia that may interest no one but me.
The Standard & Poor's 500 was down Friday, after finishing up Thursday. It was the 12th consecutive day that the index had reversed course — the first time that has ever occurred.
In a week when few Oklahoma stocks registered gains, our best-performing local issue was Chesapeake Granite Wash Trust with a 4.6 percent gain. Faithful readers may recall a couple of weeks ago, CHKR's price fell after a critical online column, which also suggested that the decline might create a good buying opportunity.
A later online column by a different author on the same Seeking Alpha website contended CHKR was “a screaming buy.”
The market, much like those who write about it, can quickly change course.
Our beagle has fallen and it can't get up.
Oklahoma City energy company GMX Resources filed for bankruptcy protection last week, which is about the worst news there is for a shareholder.
The stock, already beaten down, was delisted and nearly deactivated. The shares, with a new ticker of GMXRQ, sank 81 percent to close at 42 cents on the over-the-counter bulletin board. Because this column covers only Oklahoma stocks that trade on major exchanges, this will be the last appearance of GMX unless it somehow rises from the ashes of this bankruptcy.
The company, which has significant assets but crushing debt, hopes to reorganize. But bankruptcy typically wipes out the holdings of shareholders, who stand at the back of the line of creditors.
GMX stock recovered once before from penny stock territory. But investors likely won't recover from this event.
Eagle & Beagle is a weekly look at the state's high-performing (eagle) and low-performing (beagle) stocks by Business Editor Don Mecoy.