Chesapeake Energy Corporation (NYSE:CHK) was off by as much as 4.5% in morning trade before rallying to being down 1.22% as shares remain volatile given the low natural gas prices. With the price of the commodity trading for just $2.27/mcf at Henry Hub, natural gas spot prices are not as strong as the bulls had hoped as warmer weather and higher-than-expected inventories weigh on sentiment. Although Chesapeake Energy Corporation (NYSE:CHK) shares are down 66% year-to-date, shares remain attractive for long term investors given the cheap valuation. Carl Icahn’s Icahn Capital LP owned 73.05 million shares of Chesapeake at the end of June.
On a separate matter, ArcelorMittal SA (ADR) (NYSE:MT) is down by 5.6% as investors become less optimistic on the stock’s future. The world’s largest steel maker reported a disappointing $711 million loss for third quarter, as demand fell due to a weakening Chinese economy. ArcelorMittal SA (ADR) (NYSE:MT) management also cut guidance and suspended the dividend. Shares are down by more than 50% year-to-date. Bulls hope China’s economy can recover quickly so steel demand can come back.
Last but not least, shares of Derma Sciences Inc (NASDAQ:DSCI) has slid by 27% after the company announced it will terminate Phase 3 clinical trials that evaluate aclerastide for diabetic foot ulcers healing.
“This action is based on futility determinations conducted by the Data Monitoring Committee (DMC) for the planned, pre-specified interim analyses regarding the primary efficacy endpoint of confirmed complete wound closure of the target ulcer within 12 weeks of the start of treatment. The decision to end the studies followed the recommendation by the DMC to stop enrollment in the studies. … We are also halting all development work with DSC127 in scar reduction and radiation dermatitis. The development program termination eliminates a projected cash burn of approximately $5 million per quarter in 2016,” the company said in a statement.
Derma Sciences plans to focus its attention to grow its advanced wound care net sales and increase its margins. The company had $49.4 million of cash and $12 million of long-term investments as of September 30. Our data shows hedge funds are bullish on Derma Sciences Inc (NASDAQ:DSCI). A total of 17 funds owned $113.18 million of Derma Sciences shares at the end of the second quarter, accounting for 61.40% of the float.