One fascinating business that has come into the spotlight in 2021 is diversified energy and power solutions company Camber Energy (NYSEAMERICAN:CEI). Lately, the trading volume in CEI stock has ramped up. Investors may now be wondering what all the fuss is about.
Much of the buzz here is due to the price action. Suffice it to say that higher prices can lead to, well, higher prices. After all, short sellers have to cover their positions.
Like with other stocks, it’s entirely possible that Reddit traders have influenced the price of CEI stock. However, you don’t have to be a social media trader to participate in this powerful rally.
Besides, Camber Energy is getting the buyers excited with some clean-energy investments as well. With that, the run-up could continue for a while — and you certainly don’t want to be on the wrong side of the trade.
CEI Stock at a Glance
One feature that makes CEI stock attractive to Reddit traders is the low price. Currently trading a little over the $3 mark, CEI is one of the penny stocks.
Investors with perfect timing would have purchased the shares back in mid-August, when they were just 34 cents apiece. They would have enjoyed a nearly 10 times rally in just a month and a half.
But just as social media traders likely helped push CEI stock up from $1 to $2 in early 2021, they might have squeezed the stock above $3 in late September. In early-hours trading on Sept. 30, the share price approached $4. Without a doubt, short sellers were feeling the heat.
Perhaps they didn’t understand the basic principles of trend trading and what can happen when you bet against a good company. In any case, $6 will now be a significant level to take out, followed by $7.25.
And if you’re thinking that CEI stock has gone too far? Just remember that some short sellers probably felt the same way back in early September, before this name propelled much higher.
Powering Up Through ESG Investments
Camber Energy is interesting for several reasons, but the company’s diversification efforts are especially compelling. Basically, Camber is acquiring interests in high-potential companies. For example, it recently announced an acquisition of 60.5% interest in Simson-Maxwell through its majority-owned subsidiary. The press release stated the following about Simson-Maxwell:
” The company integrates innovative technology with superior products to contribute to global energy sustainability. Operating for over 80 years, Simson Maxwell’s diverse group of employees […] service over ⁓ 4,000 maintenance contracts and assist with satisfying the energy and power-solution demands of the company’s entire customer-base.”
So, taking a majority interest in Simson-Maxwell demonstrates that CEI stock is highly appropriate for ESG (Environmental, Social and Governance) investors. But this acquisition is not the only move that Camber has made.
On top of this, Camber Energy has also purchased a majority interest (60.5%) in Viking Energy (OTCMKTS:VKIN). Viking has an oil and gas division with interests in properties in Louisiana, Mississippi, Texas and Kansas.
A Clean-Energy Concept
In the aforementioned transaction, Camber purchased $11 million worth of Viking’s common stock. Further, some or all of those proceeds may be used to “facilitate the potential execution of an agreement with respect to the license of a patented carbon-capture system for exclusive use in Canada and for a specified number of locations in the United States.”
That means CEI stock investors can experience the upside potential of more than one clean-energy-focused business here.
Specifically, Viking Energy entered into an Exclusive Intellectual Property License Agreement with ESG Clean Energy. This deal involves the latter’s “patent rights and know-how related to stationary electric power generation,” including methods to utilize heat and capture carbon dioxide” via the ESG Clean Energy System. The press release states the following:
“The ESG Clean Energy System is designed to generate clean electricity from internal combustion engines and utilize waste heat to capture ⁓ 100% of the carbon dioxide (CO2) emitted from the engine without loss of efficiency […]”
All told, this deal adds a lot of value for Camber Energy and CEI stock. The license will be exclusive for all of Canada with an unlimited number of systems as well as non-exclusive in the U.S. for up to 25 locations.
The Takeaway on CEI Stock
All told, CEI stock could continue to move higher, creating financial distress for the short sellers. Meanwhile, shareholders in this penny stock should stay tuned for further developments.
Camber Energy is diversifying its business and ramping up its value-added, clean-energy investments. It has made a few interesting acquisitions which could mean good things for both the company and investors.
As such, shareholders should prepare for more potential profits in the coming months.
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On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
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