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Chesapeake Energy's stock went on a wild roller coaster ride yesterday. Over the past two days, the company's stock rose by nearly 500% in value. Trading of the stock was halted 22 times yesterday for volatility. Chessy stock hit an all-time low of $8.41/share on May 14, the equivalent of a pre-reverse split price of just 4 cents per share--essentially worthless. The company's shares rose over the past few days on the news that OPEC is extending its production cuts, boosting the price of oil. Right on cue, Bloomberg arrived early this morning with a story to throw cold water on Chessy's rekindled stock--a story that the company has a plan to declare bankruptcy and turn current debtholders into the new owners, making all of those red hot shares of stock worthless. Bloomberg's bankruptcy news sent the stock price down in pre-hours trading this morning.
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