Basic Materials

Chesapeak Energy Corporation CHK Stock News

Chesapeake Energy Corporation (NYSE: CHK)

Chesapeake Energy is having an incredibly rough time in the market today, and for good reason. The company is falling victim to lower oil prices. Recently data came out with regard to US oil reserves that’s sending the value of the commodity tanking. Today, we’ll talk about the data, how the market is reacting to the news, and what we can expect to see from CHK moving forward. So, let’s get right to it…

Trade smarter and make more money with Tradespoon!

CHK Tanks On US Oil Data

As mentioned above, Chesapeake Energy is having an incredibly hard time in the market. The stock is falling in tandem with oil, as recent US data surrounding the commodity is causing concerns. A recent study was released today, showing that US oil reserves are becoming a big issue.

According to the data that was released earlier today, the United States now holds larger oil reserves than Saudi Arabia and Russia. This is the first time in history that this has happened. According to Rystad Energy, the United States is estimated to hold about 264 billion barrels of oil. This is a huge reserve when we compare it to Saudi Arabia’s 212 billion barrels or Russia’s 256 billion barrels. This is sending the value of oil downward, and CHK is following the trend.

On top of the news that the United States is now holding more oil than Saudi Arabia and Russia, investors are also concerned about rig counts in the country. In fact, during four of the last five weeks, US rig counts have been heading upward. Over this period of time, 10 more rigs have come on board, adding to the global supply glut. Today, the US has 431 operational oil rigs. That number is up by 10 over the past 5 weeks. This, unfortunately, is more bad news for CHK and its investors, as it insinuates further declines in the commodity to come.

How The Market Reacted To The News

As investors, one of the first things that we learn when we get started in the market is that it is very important to watch the news. After all, the news causes movement in the market. When good news is released about a publicly-traded company, we can expect to see gains in the stock associated with that company. Adversely, negative news leads to declines. Unfortunately for Chesapeake Energy, the news that was released was overwhelmingly negative. It shows that supply glut issues in oil are continuing in a big way, which will weigh on the company’s profits. As a result, we’re seeing sharp declines in the value of the stock today. Currently (2:09), CHK is trading at $4.22 per share after a loss of $0.38 per share, or 8.17%, thus far today.

What We Can Expect To See Moving Forward

Moving forward, I have an overwhelmingly bearish opinion of what we can expect to see from CHK. The company’s profits are largely derived from oil. Therefore, it is highly susceptible to changes in the price of oil. Unfortunately for Chesapeake Energy, and its investors, the landscape with regard to oil simply isn’t looking great at the moment.

First and foremost, the supply glut surrounding the commodity continues to grow. This will only cause oil to continue to fall in value. In return, CHK is likely to yield lower revenues and diminishing profits. However, that’s not where it stops. Another big key here is the fact that the global economy isn’t looking great. With the Brexit in mind, China struggling, and the US barely staying above water, economic conditions around the world are very concerning. This means that consumers are likely to work to use less oil, reducing their expenses. Unfortunately, reduced demand is likely to lead to more declines in the commodity and more hardships for CHK.

Don’t waste your time! Click here to find winning trades in minutes!

What Do You Think?

Where do you think CHK is headed moving forward and why? Join the discussion at TalkTRENDZ from CNA Finance!

[Image Courtesy of Wikipedia]

Vista Gold Corp VGZ Stock News

Vista Gold Corp (NYSEMKT: VGZ)

Vista Gold has had an incredible time in the market as of yet. The good news is that if you think you’ve missed the opportunity here, you couldn’t be more wrong. At the end of the day, the stock has plenty more room to climb. Today, we’ll talk about why VGZ is headed upward and why there’s plenty more room for the stock to head upward.

Why VGZ Has Had Such A Great Time In The Market Lately

As mentioned above, Vista Gold has had an incredibly strong time in the market as of late, and for good reason. The story surrounds a recent vote out of the UK.

For some time, there have been politicians in the UK that have argued that its relationship with the EU is causing economic pain. As a result, these politicians argued that the best move for the UK would be to leave the EU. However, there are plenty of politicians that argued the opposite.

On the other side of the fence, some politicians argued that leaving the EU would cause more economic pain for the UK. While they didn’t disagree that the relationship is leading to struggles, they warned that leaving the EU wouldn’t be the best way to handle things.

Soon, it was up to the British people. They recently voted to exit the UK. As a result, the UK and the European economies were called into question. This was great for VGZ.

Why The Brexit Was Great For The Stock

To understand why this sent VGZ upward, it’s important that you understand what the company’s product is. As the name of the company insinuates, Vista Gold is a company that is solely focused on gold. They mine, prepare, and sell the precious metal on the open market.

The Brexit was great news for gold. After all, the precious metal is considered to be a safe-haven investment. Therefore, when market or economic conditions are called into question, we can expect to see gains in gold as investors look to the precious metal to keep their money safe. Unfortunately, the Brexit has incredible implications for the economies of the UK and Europe and could lead to global economic hardship. As a result, gold is climbing in value as investors look to keep their assets safe. This is sending VGZ skyward.

What We Can Expect To See Moving Forward

Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from Vista Gold. At the end of the day, the company has the right product at the right time. At the moment, global economic conditions are concerning to say the least. No one knows the extent to which the Brexit will lead to economic hardship in the UK, Europe, and around the world. This is leading to incredible market uncertainty and causing investors to look for ways to keep their money safe.

Today’s safe-haven climate is very different than what it was in the past, which also benefits VGZ. The reality is that bonds are no longer a great option due to low interest rates and other stimulus. The Swiss Franc lost its safe-haven status a while ago. So, at the moment, the two strongest safe havens are gold and silver. So, we can expect to see more gains in these commodities moving forward. Naturally, this will send the value of VGZ skyrocketing.

What Do You Think?

Where do you think VGZ is headed moving forward and why? Join the discussion at TalkTRENDZ from CNA Finance!

[Image Courtesy of Pixabay]

Stone Energy SGY Stock News

Stone Energy Corporation (NYSE: SGY)

Stone Energy Corporation is having an incredible time in the market today. The gains are following up on what we saw yesterday and come for good reason. Yesterday, the company announced that it had terminated one agreement and signed another. Today, we’ll talk about the news, how the market reacted, and what we can expect to see from SGY moving forward.

Trade smarter and make more money with Tradespoon!

SGY Terminates Ensco Contract

The first part of the announcement that was made yesterday surrounded the fact that Stone Energy has decided to terminate a long-term contract. The contract was with Ensco, surrounding deep water rigs. In order to terminate the contract, the company has agreed to pay penalties.

First and foremost, SGY will pay $20 million to Ensco. It is estimated that $5 million of this total was already given to Ensco pursuant to the drilling services contract. Also, the company has agreed to provide Ensco with the opportunity to perform certain drilling services. Finally, the company has paid Ensco a $5 million deposit that will be used as credit against future drilling activities initiated before March 31, 2017.

Stone Energy Enters Agreement With Williams

Also in the press release yesterday, SGY announced that it had entered into a new agreement. The agreement is an interim gas gathering and processing agreement with Williams. The gathering and processing will take place at the Mary field in Appalachia. This new contract provides SGY with near-term relief, as it allows the company to resume production at the Mary field. In return, the company will be able to provide greater volume to Williams.

It is expected that volumes out of the Mary field will come in around 45 MMcfe per day in the beginning. However, by July, that volume is expected to climb to 60 MMcfe per share, and by August, it should climb to 100 MMcfe per day. According to the release, the above volumes are in addition to the approximately 20 MMcfe per day of production from the Heather and Buddy fields. In a statement, David Welch, President and CEO at SGY, had the following to offer:

We are very pleased to reach agreements with both Ensco and Williams on these two important contracts. The termination of the Ensco contract eliminates a long term obligation, which provides Stone with additional financial flexibility. The interim contract with Williams allows us to resume profitable production and positive cash flow at our Mary field in West Virginia. We appreciate Ensco’s and William’s willingness to work with Stone during this difficult period of sustained low commodity prices.”

How The Market Reacted To The News

As investors, one of the first things that we learn is that the news moves the market. Anytime positive news is released with regard to a publicly-traded company, we can expect to see gains in the value of the stock associated with the company. In this particular case, the news released by SGY was overwhelmingly positive. As a result, we saw strong gains in the market yesterday. Today, these gains are continuing as the stock rockets upward. Currently (12:31), the stock is trading at $13.73 per share after a gain of $1.67 per share, or 13.85%, thus far today.

What We Can Expect To See Moving Forward

Moving forward, I have a relatively mixed opinion of what we can expect to see from SGY. In the short term, I’m expecting that more gains will come as the company works to make it through a rough time for those in the basic materials sector. With the cancellation of one contract and signature on the new contract, the company has made a way to survive.

However, investors don’t just like to see survival. They like to see companies thrive. Given the current market conditions, thriving simply doesn’t seem like something that’s going to happen any time soon. So, there is quite a bit of long-term downside risk. Therefore, if you decide to move on an SGY trade, please do move with caution.

Don’t waste your time! Click here to find winning trades in minutes!

What Do You Think?

Where do you think SGY is headed moving forward and why? Join the discussion at TalkTRENDZ from CNA Finance!

[Image Courtesy of Wikipedia]

Amyris AMRS Stock News

Amyris Inc (NASDAQ: AMRS)

Amyris is having a strong day in the market today, and for good reason. The company recently announced that it entered into an agreement surrounding cosmetic ingredients. Investors are expecting that this agreement will lead to big gains in revenue and profits. Today, we’ll talk about the details of the agreement, how the market is reacting to the news, and what we can expect to see from AMRS moving forward. So, let’s get right to it…

Trade smarter and make more money with Tradespoon!

AMRS Enters Collaboration Agreement

As mentioned above, Amyris is having an incredibly strong day in the market today as the result of a collaboration announcement. Early this morning, the company announced that it would be teaming up with Givaudan. Givaudan is a leading flavors and fragrances company that does business around the world.

The agreement surrounds a research and development project. According to the news, AMRS and Givaudan will team up to develop proprietary fragrance ingredients. The new agreement is expected to stay in effect for several years.

This is an incredibly important agreement for AMRS. While the companies have worked together in the past, the partnership is now significantly expanded. Ultimately, the partnership reinforces the diversity and underlying value associated with the company’s research and development platform and manufacturing capabilities.

Under the agreement Amyris will be taking advantage of its industry-leading strain engineering platform. The platform will be used to design cosmetic active ingredients and help to scale them for global commercialization. The goal here is to launch several target products over the coming years that offer significant performance, cost, and sustainability advantages to their customers.

Following the announcement, we heard comments from both the CEO of AMRS and the President of Givaudan’s Fragrance Division. Here’s what they had to say:

We are excited to be working with Givaudan to solve supply challenges and deliver sustainable innovation in cosmetic activities. We are very pleased with the Givaudan commitment to innovation and its leadership in delivering breakthrough advancements in Active Cosmetics… The collaboration validates, once again, our belief that Amyris offers its customers the fastest time to market from target identification to production of multiple tons of high quality ingredients via its disruptive approach toward meeting partners’ requirements. We are making our planet better, delivering consumers cultured ingredients that are better for them while improving our partners’ business performance.” – John Melo, AMRS President and CEO.

We are very pleased with our ongoing partnership with Amyris. As our company continues to look for innovative and sustainable solutions to availability and cost challenges, we are expanding the relationship to apply Amyris’s technology to a whole new field… The partnership will derive synergistic benefits from Givaudan’s deep understanding of Active Beauty area and Amyris’s world class biotechnology platform.”

How The Market Reacted to The News

As investors, one of the first things that we learn is that the news moves the market. Any time positive news is released with regard to a publicly-traded company, we can expect to see gains in the value of the company as a result. Adversely, when negative news is released, we can expect to see declines. In this particular case, the news that was released with regard to AMRS was overwhelmingly positive. So naturally, we’re seeing strong gains in the value of the stock today. Currently (1:09), the stock is trading at $0.39 per share after a gain of $0.04 per share, or 10.71%, thus far today.

What We Can Expect To See Moving Forward

Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from Amyris. The company has proven its capabilities in the development of new ingredients for cosmetic applications. As a result, they have earned yet another collaboration agreement. All in all, it seems as though things are headed in the right direction for the company. So, I’m expecting to see gains in AMRS moving forward.

Don’t waste your time! Click here to find winning trades in minutes!

What Do You Think?

Where do you think AMRS is headed moving forward and why? Join the discussion at TalkTRENDZ from CNA Finance!

[Image Courtesy of Pixabay]

Gevo GEVO Stock News

Gevo, Inc. (NASDAQ: GEVO)

Gevo has been an incredibly interesting stock to watch as of late. Recently, the company’s shares have been soaring in price. However, it is racing the clock. If share values don’t get to $1 each by July 25th, the company faces being delisted from the NASDAQ. Nonetheless, I have to say that I’m not concerned. In fact, I see no reason why the company wouldn’t be able to reach this mark. Today, we’ll talk about why I, along with many others, maintain such a bullish opinion of GEVO.

Trade smarter and make more money with Tradespoon!

GEVO Has The Right Product At The Right Time

Let’s face it, it doesn’t matter what company you’re talking about, a company really isn’t a company without a product to sell. When it comes to Gevo, the company has the right product at the right time.

The company is focused on the manufacturing of biofuels and other renewable chemicals. One of the most notable chemicals is called isobutanol. To create this, GEVO came up with a technology that includes metabolic engineering, synthetic biology, chemical engineering and chemistry. Through their technology, they have been able to create isobutanol and other renewable fuels from discarded feedstock.

At the moment, the global view on how energy and fuels are generated is changing. Over the years, we have noticed the effects of greenhouse gasses on our planet. Unfortunately, the effects have been anything but positive. As a result, governments, businesses, and even consumers are looking for ways to reduce their carbon footprint on our planet. This falls right in line with the goals and products at GEVO. As a result, the company is perfectly positioned for big gains to come.

Customer Contracts Make The Stock Appealing

Gevo hasn’t just been sitting around creating renewable fuels. Let’s face it, having a great product is awesome, but you have to sell that product to make money. Well, the company isn’t lacking in this area either. In fact, since 2011, the company has been creating agreements with some great customers. One of them is the United States Military. Outside of the military, here are some of the other agreements we’ve seen since 2011:

Companies That Signed Agreements With Gevo In 2011

  • Mansfield Oil Company of Gainsville
  • Land O’Lakes Purina Feed LLC
  • The Coca Cola Company
  • Northwest Advanced Renewables Alliance

Companies That Signed Agreements With Gevo In 2014, 2015 and 2016

  • Total Additives & Special Fuels – 2014
  • Alaska Airlines – 2015
  • BCD Chemie – 2015
  • Musket Corporation – 2016

As you can see from the list above, GEVO has compiled an incredibly compelling list of customers to date.

This Test Could Send Sales Skyrocketing

Most recently, we’ve seen quite a bit of news about Alaska Airlines when looking up Gevo, and for good reason. Under the agreement Alaska Airlines signed with the company in 2015, when Gevo’s jet fuel made it through the regulatory process, it would be used in test flights. Two test flights were recently run using the renewable jet fuel.

At this point, we are awaiting the results of these test flights. Obviously, the jets that were used in the tests landed safely, but we do not know key details. Details including how the fuel performed, how the jets reacted to the fuel, and more are expected to become available relatively soon.

This could be absolutely huge for GEVO. If the two test flights went well, we can expect that Alaska Airlines will start using the renewable jet fuels in commercial flights. This would send the company’s sales of renewable jet fuels skyrocketing.

This Could Just Be The Tip Of The Iceberg

However, I don’t think it would stop there. If Alaska Airlines does start using Gevo’s renewable jet fuel, it will be able to say that it is the first airline to fly on renewable fuels. This would be great for Alaska Airlines, as it will make the company more appealing to consumers.

Of course, when competition sees one company making money on something, they want to jump in too! In this particular case, if the test flights prove to have gone well, and Alaska Airlines does start to use the renewable fuel, leading to increased sales, other airlines will likely start to create agreements with GEVO as well. The implications with regard to sales potential could be absolutely massive!

Isobutanol Agreement Also Supports Growth In GEVO

Another major factor to consider here is a recent agreement surrounding isobutanol. As mentioned above, isobutanol is a renewable fuel the company created using proprietary technology. Now, it looks like this product is going to climb in a big way too. Recently Gevo signed an agreement with the Musket Corporation.

Under this agreement, the Musket Corporation will be using isobutanol in gasoline blends. At first, the blends will be designed for marine and off road indications. Nonetheless, this is expected to expand further.

One of the most important parts of this agreement is who the Musket Corporation is. You see, they are one of the larger distributors in the Love’s Family of Companies. Love’s is massive and gives GEVO great reach into the fuels market. In a statement, Dr. Patrick Gruber, Chief Executive Officer at Gevo, had the following to say with regard to the agreement:

We believe Musket is an excellent partner to expand the use of isobutanol in gasoline blends, as our isobutanol production at Luverne builds. Musket and Love’s are significant players in fuel distribution and retail in the U.S., so they have great reach to get our isobutanol into the market…”

The Bottom Line

At the end of the day, I can understand why some are concerned about GEVO. If the stock doesn’t reach $1 per share soon, it faces being delisted from the NASDAQ. Nonetheless, it’s got a month to get there, and with recent gains and fundamental news, I see no reason why it wouldn’t reach this mark. All in all, the company is well positioned for growth as its products fall in line with global needs. I’m expecting to see long-run gains in the stock.

Don’t waste your time! Click here to find winning trades in minutes!

What Do You Think?

Where do you think GEVO is headed moving forward? Join the discussion at TalkTRENDZ from CNA Finance!

[Image Courtesy of PEXELS]

Vista Gold Corp VGZ Stock News

Vista Gold Corp. (NYSEMKT: VGZ)

Vista Gold Corp is having an incredible time in the market today, and for good reason. While the global market crashes, demand for the company’s flagship product is gaining in a big way. Today, we’ll talk about why poor global market conditions are sending the stock upward, what we’re seeing from the stock today, and what we can expect to see from VGZ moving forward.

Why Global Market Declines Are Leading To Big Gains For VGZ

The global market is a tough place to be at the moment. That is, unless your core product is gold, as it is at Vista Gold Corp. You see, the global market is declining in a big way after the British people voted to leave the European Union. This decision may have severe global economic implications.

Because the UK is leaving the EU, Europe no longer has the strength and stability of the UK economy to fall back on. So naturally, we’re going to see some pain in Europe. On top of that, after leaving the EU, the UK will be forced to renegotiate many of its global trade agreements. This will lead to economic pain for the UK. As a result of global trade, this will likely lead to big economic issues around the world. While this is horrible for the market, it’s a great thing for VGZ.

The reality is that the flagship product at the company is gold, and gold is considered to be a safe-haven investment. This means that when global economic or market conditions are called into question, investors look to the metal as a way to keep their money safe. This leads to massive gains in demand and, ultimately, big gains in the price of the precious metal. At the end of the day, that’s great for VGZ.

What We’re Seeing In The Market Today

As mentioned above, VGZ is having an incredible time in the market today, and for good reason. With the British people voting to leave the EU, economic and market conditions are both concerning at the moment, to say the least. This is leading to gains in gold demand, and ultimately gains in the value of the precious metal. Because gold is the flagship product at Vista Gold Corp, the stock is skyrocketing at the moment. Currently (1:18), the stock is trading at $1.86 per share after a gain of $0.30 per share, or 19.23%, thus far today.

What We Can Expect To See Moving Forward

Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from VGZ. The reality is that there is a very good reason for the gains we’re seeing in the stock at the moment. With global economic concerns and poor market conditions, gold is going to skyrocket. This will help Vista Gold climb as well.

While I would love to say that we’re seeing the worst of the global economic struggles at the moment, that’s simply not the case. The truth is that I believe what we’re seeing is merely an introduction of what is to come through the next year or so. As a result, I’m expecting to see continued gains in the value of gold and, naturally, VGZ.

What Do You Think?

Where do you think VGZ is headed moving forward and why? Join the discussion at TalkTRENDZ from CNA Finance!

[Image Courtesy of Wikipedia]

Thought Leader Discussions

Gevo, Inc. GEVO Stock News

0 3784
Gevo, Inc. (NASDAQ: GEVO) Before we get into this interview, I'd like to extend a special thanks to my friend Joey who both set up the...