- A subsidiary of Camber Energy (CEI) recently disclosed an exciting carbon-capture technology patent.
- At the same time, prospective investors should monitor the $1 level as it could be significant for Camber Energy stock.
- Investors should weigh the benefits and the concerns, but the long-term outlook seems to favor a position in Camber Energy.
Fossil fuel prices have moved sharply to the upside, but investors shouldn’t dismiss the growth potential for clean energy. In this vein, diversified energy and power solutions company Camber Energy (NYSEAMERICAN:CEI) deserves a place on your watch list — but don’t buy CEI stock until you know all of the relevant facts.
Interestingly, the reviews concerning Camber Energy among InvestorPlace‘s contributor have been mixed. On one hand, Larry Ramer considers Camber Energy shares as a good way to hedge against oil-price instability.
In contrast, Will Ashworth was less enthusiastic about CEI stock. He mentioned specific price levels for the stock, which we’ll address in a moment.
Overall, it’s important to weigh the benefits and drawbacks of taking a stake in Camber Energy. As we’ll see, an intriguing patent could tip the scale in favor of a bullish outlook, and might even convince you to start accumulating the stock.
What’s Happening with CEI Stock?
Believe it or not, CEI stock has a 52-week range of 33 cents to $4.85. This should give you an idea of how volatile this stock can be sometimes. Consequently, it’s important to maintain moderate position sizing if you choose to invest in Camber Energy.
It’s possible that meme-stock traders targeted Camber Energy shares for a short squeeze in 2021. Those days are in the rear-view mirror now, though. Lately, the stock has traded between 75 cents and $1.
This is important because $1 is a key level from technical and psychological standpoints. Could $1 also have greater significance, though?
Ashworth broached this question when he pointed out that both the Nasdaq and the New York Stock Exchange have $1 closing bid-price requirements. As he explained, “Companies that close below a $1 minimum bid for 30 consecutive business days are sent a delinquency letter,” and it might only get worse after that.
Yet, this specific issue doesn’t seem to apply to CEI stock. That’s because it’s listed on the NYSE American exchange. That particular exchange “considers a low price of 20 cents, one-fifth of the NYSE and Nasdaq,” Ashworth observed. Hence, Camber Energy isn’t currently in danger of being de-listed based on price.
Another factor to consider is that Camber Energy’s majority-owned subsidiary, Viking Energy Group, owns interests in U.S.-based oil and natural gas assets. Thus, Camber Energy’s investors will definitely want to have a bullish outlook on future fossil-fuel prices.
New Patent, New Innovation
What could catalyze CEI stock and propel it above $1 this year? Just maybe, the driver of higher share prices will be a technology that will contribute to a cleaner Earth.
According to a recent press release, the U.S. Patent & Trademark Office issued Viking Energy a patent “in connection with the intellectual property and other rights licensed by Viking from ESG Clean Energy.” This patent covers a Bottoming Cycle Power System along with its related impact to carbon-capture technology.
Probably the most interesting part of the patented technology is the carbon-dioxide capture system. Apparently, when natural gas is used to make electricity, this system uses the waste heat from a carbon dioxide pump to “heat and regenerate the absorber” that enables the carbon dioxide to be safely contained and packaged.
In other words, this may be a new way to capture the emitted carbon dioxide from the use of fossil fuels, or at least from natural gas. Perhaps over time, this patented technology could provide a significant revenue source for Camber Energy.
What You Can Do Now
First and foremost, you’ll want to monitor the price of CEI stock as $1 could be a battle zone for a while. A sustained, high-volume breakout of that level would certainly give the shareholders more confidence.
Meanwhile, keep an eye on the prices of fossil fuels, as Camber Energy does have financial interests in that area. Yet, the company also has a strong clean-energy connection. So, feel free to make an investment if Viking’s carbon-capture technology piques your interest.
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.