Shares of Chesapeake are the biggest gainers on the New York Stock Exchange today, jumping more than 26% following the company's earnings report earlier this morning. For the third quarter, CSK reported earnings of 16 per share, or 34 cents per share on a continuing operations basis. Sales surged 7.5% to $266.4 million from $247.9 million in the same quarter last year.
Pessimism was rife on the stock heading into this morning's report, as CSK's short-interest ratio indicated that it would take 13 days to buy back the 1.42 million shorted shares. Furthermore, the 3 analysts that bothered to cover the equity rate it a hold. While upgrades and short-covering could benefit CSK, the stock has earned its bearish following, having lost more than 51% since the beginning of the year. Additionally, today's surge following earnings still leaves CSK capped by short-term resistance at the 8 level and long-term resistance at its 10-week moving average, making an extended rally on unwinding bearish sentiment quite unlikely at this point.