Chesapeake Energy To Gain From Activity In January

Chesapeake Energy Corporation is being considered as an energy company which has faced some major lows in the past year which seems to be forming crease between the eyebrows of the investors on bigger levels now. The oil digging company has not been showing much activity on the stock lately but analysts believe that despite the huge number of losses that it has made in the past few months, there might be a ray of sunshine looking out for the giant in the start of the new year. Analysts are of the opinion that investors in any company are always looking at the accumulative results that a company shows by the end of the year, which means that the same is being expected for the investors in the oil company now. Chesapeake stock has failed to sustain itself in the oil market for long and that is majorly due to the rise and fall of the oil prices in the international forum, which has made the company lose stock value by 75% in the same year only. This fall of the share and stock price is not something to be ignored, as it has turned things around in the worst possible ways for the oil field services provider. Analysts in the energy industry think that once the fiscal year ends for the company, the giant might turn out to show some much needed strengths which it has been holding back previously. Before the year ends on December 31, it is a common practice for investors to shed off their load in the stock market and to get rid of all the stocks that show no positive future in the industry. By that time comes, analysts believe that it will prove to be a turning point for Chesapeake shares as it could go either in the positive direction or in the negative one, something that only time will tell. This effect on the stock of the oil giant has been named as the January Effect, which will determine how the next year is going to be for the energy company. The share price that was traded off in the start of the year by the oil company was $21. However, it is not trading its shares on a share price of $5, which is indeed a sad state for the stock of the oil diggers to be in. Depending on the January Effect, analysts are expecting some positivity to hit the stocks despite bearishness.