Even though oil and natural gas company Camber Energy (NYSEAMERICAN:CEI) is small, CEI stock has been heavily traded in 2021. What exactly is going on here?
Surely, I don’t need to inform you that meme stock mania has become a major force in the financial markets. Members of Reddit forum r/WallStreetBets plucked a number of tiny businesses out of obscurity and pumped up their share prices.
CEI stock may have been the target of a Reddit-fueled short squeeze earlier this year. And recently, there’s been social media chatter regarding the possibility of another huge rally in share price.
That’s an exciting story which we will certainly delve into. At the same time, it’s important to learn about the company itself – and with that, we’ll discover an ESG (environmental, social and governance) angle to pique your interest.
A Closer Look at CEI Stock
Informally, we can call CEI stock a penny stock as it trades below $5. It currently trades for about $1.50, but was under $1 earlier this month.
A year ago, Camber Energy shares were even cheaper at just 50 cents apiece.
Then in early 2021, the meme stock phenomenon grabbed hold of the markets, and hardly anyone could have predicted what would happen next.
With unbelievable fury and frenzy, the buyers pushed CEI stock up to a 52-week high of $3.10 on Feb. 18.
There wasn’t any company-specific or industry-related news catalyst to justify a share-price move of that magnitude. Therefore, it’s entirely possible that social media traders were involved.
The problem with meme stock pumps is that they are often followed by sharp price declines. CEI stock provides a textbook example of this.
After topping out in February, the Camber Energy stock commenced a multi-month slide. On Aug. 19, the stock bottomed out at a paltry 34 cents.
But now, CEI stock is showing signs of life again, soaring back over $1. Could Camber Energy be back on social media traders’ radars?
Retail Traders Are Talking
Just recently, InvestorPlace contributor William White reported on the latest social media activity surrounding Camber Energy.
White bore witness to than 191 million shares of CEI stock changing hands in a single trading session.
“That’s a massive jump from its daily average trading volume of about 27.7 million shares,” he observed.
White wasn’t the only commentator taking notice, apparently.
For example, @Nickswinging enjoined, “listen everyone, there’s ALOT of short interest in camber right now. If you want a REAL short squeeze NOW is your chance.”
@LadeBakk, meanwhile, had a “pro tip” for CEI investors: “Stop selling in the morning when the bell rings and losing your shares, just to watch the stock spike back up and go green. It keeps happening. Oh yeah, it’s happening.”
With similar enthusiasm albeit fewer words, @ACInvestorBlog tweeted, “$CEI too strong to ignore !!”
From Memes to ESG
That detour was fun, but let’s get serious now.
As it turns out, Camber Energy is more than a possible short squeeze target.
The company has a majority-owned subsidiary named Viking Energy Group. Furthermore, that subsidiary has entered into an exclusive intellectual property license agreement with ESG Clean Energy.
This agreement concerns ESG Clean Energy’s “patent rights and know-how related to stationary electric power generation, including methods to utilize heat and capture carbon dioxide,” known as the ESG Clean Energy System.
Reportedly, the license is exclusive for all of Canada, and non-exclusive for up to 25 locations in the U.S.
The ESG Clean Energy System is a carbon-capture platform that’s designed to generate clean electricity from internal combustion engines.
It can be applied to plastics recycling operations, nitrogen removal, micro-grids, data centers and even cryptocurrency mining operations.
The Bottom Line on CEI Stock
Clearly, access to ESG Clean Energy System could be a highly valuable addition to Camber Energy’s business.
I suspect that some of the more hyped-up meme stock traders aren’t aware of the ESG angle with Camber Energy.
That’s perfectly fine. As an informed investor, you can choose your reasons for taking a position in CEI stock – with or without the memes.
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On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.