Personal Finance
CQP

Weak Earnings and Short-Sellers Combine to Send Cheniere Energy's Stock Plummeting in May

LNG Chart

LNG Chart

LNG data by YCharts .

Another reason why Chenere's stock seemed to struggle so much is that famous short-seller Jim Chanos continued to make bearish comments about Cheniere's business model, and its current valuation. Cheniere Energy's stock has been in Chanos' sights for several months now, and he continues to say on any occasion given to him that the stock is wildly overvalued considering the amount of time it will take for the company to generate any real profits. So far, Chanos' short position has paid off rather well, as Cheniere's stock has tumbled precipitously since Chanos went public with his position a little less than a year ago.

LNG data by YCharts .

Now What: New CEO Jack Fusco certainly has his hands full. Now, rather than simply managing the construction of the new facilities, Cheniere has to prove that it can be an efficient operator. Anyone who is considering investing in Cheniere Energy has to remember that this is still a bit of an unknown with the company, and it will take a long time before the investment thesis Cheniere has presented plays out. So for the time being, it's probably worth not looking too much into this past month's stock swing, and waiting to see how the company performs as it brings more of its LNG export capacity online.

A secret billion-dollar stock opportunity

The world's biggest tech company forgot to show you something, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology. And we think its stock price has nearly unlimited room to run for early in-the-know investors! To be one of them, just click here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

CQP LNG

Other Topics

Stocks

The Motley Fool

Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Learn More