Shares of Continental Resources Inc. took an afternoon dive from its highs, dipping briefly into negative territory, before bouncing, after noted short-seller Jim Chanos said the fracking company was one of his favorite short plays. The stock was up 3.0% at around $35.21 around 3 p.m. ET, just below the intraday high of $35.53, the sold off sharply after Chanos’ comments to trade down 1.3% at an intraday low of $33.75 around 3:04 p.m. The stock was recently up 1.2%. Chanos said at CNBC’s Delivering Alpha conference that Continental Resources was “indicative of problems in the industry,” which he said investors were viewing through “rose-colored glasses,” given the industry’s high levels of debt and low cash flows. Continental Resources’s stock has tumbled 33% year to date, while the SPDR Energy Select Sector ETF has shed 13.2% and the S&P 500 has gained 11.4%.
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