Eagle & Beagle
This week's eagle is a company that may be gaining a bit of altitude amid the downdrafts of heavy scrutiny.
Oklahoma City's own Chesapeake Energy Corp. is no stranger to the headlines, many of which have been skeptical of the firm's leadership and direction in recent months. But over the past two weeks, CHK shares gained 8.2 percent. The stock closed Friday at $20.81.
The stock's best day over the last 10 came on the same day CEO Aubrey McClendon appeared on CNBC with legendary shouter Jim Cramer. McClendon continued to tout his company's plans to improve its governance, sell assets and cut debt, and shift more production toward oil and liquids and away from low-priced natural gas.
While Chesapeake shares remain down for the year, the chart is reflecting some upward momentum in recent weeks after bottoming out in mid-May.
Next big event for investors: A Nov. 2 earnings call and operational update.
Our beagle, Oklahoma City-based energy firm GMX Resources, is making a move to boost its stock price.
Unfortunately, the proposed reverse stock split only changes the price — not the value — of the shares. Over the past two weeks, GMXR shares fell by one-third, closing Friday at 50 cents a share. On Thursday, the shares hit an all-time low of 45 cents.
The company has scheduled a special shareholders meeting to consider a reverse stock split ranging from 1-for-5 to 1-for-13. A 1-for-5 split, for instance, would boost the current price of the shares to $2.50. But the underlying value of those combined shares would not be affected.
The company in a regulatory filing noted that artificially boosting the share price will help it regain a level needed to maintain its listing on the New York Stock Exchange.
GMX also hopes a higher price will boost investor confidence. “Lower-priced stocks have a perception in the investment community as being risky and speculative,” the company said.
Eagle & Beagle is a weekly look at the state's high-performing (eagle) and low-performing (beagle) by Business Writer Don Mecoy.