CHK Stock Analysis

I Know First supplies financial services, mainly through stock forecasts via their predictive algorithm. The algorithm incorporates a 15-year database, and utilizes it to predict the flow of money across 2000 markets. The self-learning algorithm uses artificial intelligence, predictive models based on artificial neural networks, and genetic algorithms to predict money movements within various markets.

The algorithm produces a forecast with a signal and a predictability indicator. The signal is the number in the middle of the box. The predictability is the number at the bottom of the box. At the top, a specific asset is identified. This format is consistent across all predictions. The middle number is indicative of strength and direction, not a price target. The bottom number, the predictability, signifies a confidence level.

I Know First published a bullish article on Chesapeake Energy, a natural gas and oil exploration and production company, on Seeking Alpha. Having explained how I Know First’s algorithm works, it is worthwhile to see if the algorithm agrees with the bullish fundamental analysis of the company. The three-month and one-year forecasts for Chesapeake Energy are included.

Chesapeake Energy is among the top stock picks for both time horizons. The stock has a strong, bullish signal for both, indicating that the stock is currently very undervalued. Over the predicted time horizon, the stock price will rebound and continue climbing, which is in agreement with the fundamental analysis. With improved operational efficiency, assets to hold the company up until oil prices increase, and robust future cash flow, the stock price is currently at a level that investors should start buying the stock.

Positive signal strength does not mean investors should automatically buy the stock. Dr. Roitman, who created the algorithm, created rules for entry for a stock such as Chesapeake Energy. Using this trading strategy, an investor should buy a stock if the last 5 signal strength’s average is positive and if the last closing price is above the 5-day moving average price. When both of these conditions are met, it is a good time to initiate a position in the stock.