At first glance, diversified energy and power solutions company Camber Energy (NYSEAMERICAN:CEI) might seem like a great business in which to invest. After all, CEI stock is cheap, and value hunters might think that it could turn itself around.
Yet it’s important to temper our fantasies with a healthy dose of realism. When a stock slips below the crucial $1 level, it can encounter problems, and sensible investors probably don’t want to become involved with toxic shares.
Maybe Reddit traders can save CEI stock by triggering an epic short squeeze in the stock. However, buying a stock in the hope that social-media traders will come to its rescue. is not an ideal strategy.
Besides, as we’ll discover, Camber Energy is in desperate need of a financial makeover, to put it politely. All in all, it’s fine to watch Camber Energy from the sidelines, but there are better places to park your hard-earned capital now.
A Closer Look at CEI Stock
In much of 2021, meme-stock trades were in fashion and Camber Energy may have been the target of a massive short squeeze.
Otherwise, it would be difficult to justify the jaw-dropping move of CEI stock from 34 cents in August to $4.85 in September. Those were exciting times, but the rally wasn’t meant to last.
After peaking, Camber Energy’s shares plunged below the key $1 level in October. Fast forward to today, and the stock is trading at around 65 cents.
To be honest, CEI stock is probably too volatile for cautious investors to consider. It might be fine to take a small, speculative position in the name. But anyone who does so will be fighting against a powerful, downward trend.
A Lack of Reliability
Just recently, InvestorPlace contributor
Camber Energy, according to“failure to meet deadlines” and, consequently, a “concerning lack of reliability.”
Exhibit A is Camber Energy’s description of a letter that it received not long ago.
Apparently, in the letter the NYSE warned Camber Energy that the company is “not in compliance with the continued listing standards… given the Company did not hold an annual meeting for the fiscal year ended December 31, 2020 by December 31, 2021.”
I have to side with
Camber Energy probably won’t be delisted based on this one infraction. Nonetheless, Camber’s flouting of the NYSE’s listing rules shows “arrogance and disrespect,” as
Opaque and Dismal
With its venture into clean-fuel alternatives, Camber Energy may be able to effectively exploit the future of the energy market. That might just be an idle fantasy, however, if the company continues to withhold (or alternatively, just doesn’t possess) essential financial information.
On the other hand, multiple SEC forms filed by Camber show that the company has been unable to file all or parts of SEC disclosures in a timely manner. The firm’s lack of transparency, stemming from its inability to provide available financial information, is frustrating.
Meanwhile, Camber’s most recently reported fiscal results, which cover 2020’s Q3. are rather dismal. During that quarter, Camber Energy incurred a staggering net earnings loss of $22,3 million.
The Bottom Line
Camber Energy appears to be in a terrible financial mess.. There’s no way to be sure, since the company is withholding its recent financial data or simply doesn’t have that data.
Either way, that’s bad news. Plus, Camber’s friction with the NYSE is an added source of consternation. There are plenty of clean-energy investment opportunities. So CEI stock, while certainly cheap, isn’t one of your best bets for 2022.
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.