Diamonds and Dogs

4/12/16

The price of oil is up along with the oil stocks. Chesapeake Energy (CHK) has had a tough couple years and months with their founder dying in a recent car accident, but today the stock jumped over 30% on new favorable revolving loan limits. The new amendment provides short-term relief for the company, which may allow it to weather the era of lower-for-longer energy prices, but the company still has a debt load nearing $10 billion that it must contend with. With almost 30% of their debt coming due in the next two years, Chesapeake has more storms to weather in the coming months and years.  

The Horizon is looking fuzzy at Horizon Pharma (HZNP). The pharmaceutical company dropped 26% on over 10 times its normal volume after the company announced 2016 first quarter revenue would come in a range between roughly $195 million and $210 million, below analysts' expectations for revenue of about $228 million. Additionally, Horizon Pharma confirmed its full-year revenue forecast for between $1.025 billion and $1.05 billion, which is in line with estimates for $1.03 billion. Let's hope the company can turn around the fundamentals in the second half of the year.