Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Stock Downgrades: Chesapeake Energy Corporation Told to Frack Off


Wall Street ratings agencies set the tone for today's stock market.

Way back in 1972, when the Miami Dolphins we just got around to honoring yesterday swept all before them, Clint Holmes had a novelty hit singing "My name is Michael, I've got a nickel." In our age of deflation, a humble Penney (JCP) was more than enough for Michael Ullman, who saw his long-suffering stock surge 5.98%. Shares rose as the CEO said "The response to our back-to-school marketing messaging which we launched late in the period has been promising." Well, bully for you.

Wayward Tony Hayward was also no stranger to putting his foot in his mouth while head of BP Plc (BP). He is now temporarily in charge of Glencore Xstrata (GLNCY) - down 1.88% on iffy earnings - after enduring a spell in Siberia. Far from the madding crowd didn't work nearly as well as Urban Outfitters (URBN), with that upgraded stock advancing an impressive 8.19%.

Today in economics, analysts expect an improvement in July existing home sales at 10:00 a.m. Eastern. At 2:00 p.m. the Federal Open Market Committee releases minutes to its July 30-31 policy meeting. On the earnings front, American Eagle Outfitters (AEO), China Telecom (CHA), Heineken (HKHHY), Hewlett-Packard (HPQ), J.M. Smucker (SJM), L Brands (LTD), Lowe's (LOW), Madison Square Garden (MSG), PetSmart (PETM), Staples (SPLS), Target (TGT), and Toll Brothers (TOL) are all due to release results.

Caterpillar (CAT): Daiwa Securities downgrades the key Dow (^DJI) component to Neutral from Outperform.

Chesapeake Energy Corporation (CHK): The company, which ex-CEO Aubrey McClendon once famously called "the biggest frackers in the world," is cut to Neutral from Positive at Susquehanna.

Fertilizer Firms: More bad news for the sector, battered of late on Russian cartel concerns. Today HSBC Securities inflicts Neutral-from-Overweight ratings reductions on Agrium (AGU), whose price objective goes to $95 from $117, and Mosaic (MOS) ($33 from $66). The 180 degree damage done to Potash (POT) (Underweight from Overweight and $22.50 from $48) is even more substantial.

GDF Suez (GDFZY): The giant French electricity firm gets downgraded to Neutral from Overweight at HSBC.

Greenhill & Co. (GHL): JMP Securities moves the investment outfit to Market Perform from Outperform.

Harmony Gold (HMY): UBS cuts the commodity company to Sell from Neutral, sending it lower this morning.

Sanofi-Aventis (SNY): Shares get downgraded to Market Perform from Outperform at Cowen.

Tupperware (TUP): BMO Capital Markets takes TUP to Market Perform from Outperform.

Velti (VELT): After yesterday's 8.77% market-bucking increase, RBC Capital Markets reduces its rating on the business software stock to Underperform from Sector Perform. Shares are slumping some 30% as I write.

(See also: New Stock Coverage: Trulia Inc Is on Easy Street and Stock Upgrades: Herbalife Ltd. Still Turning Bill Ackman's Hair 50 Shades of Gray.)
< Previous
  • 1
Next >
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Featured Videos