Shares of Camber Energy (NYSEAMERICAN:CEI) are trending today following an update on a patent the company is seeking for a new medical waste treatment technology. CEI stock has gained 16% in the past five trading sessions.
Its subsidiary, Viking Energy, has secured the aforementioned patent to develop medical waste treatment systems and methods. However, while CEI stock has risen in recent days, the company’s share price has declined 52% year-to-date and currently trades at only 43 cents per share, putting it deep in penny stock territory.
What Happened With CEI Stock
In a news release, Camber Energy said Viking Energy is on its way to receiving a patent for its ozone-based treatments of medical waste. The subsidiary has reportedly received a favorable response from the U.S. Patent & Trademark Office regarding its pending patent application related to its ozone-based waste water treatment.
This news has been enough to send CEI stock higher. Camber Energy has been targeted by retail investors for a short squeeze in the past. The company’s stock spiked as high as $4.85 last September before crashing back below $1 per share. It is not clear whether the move higher in recent days is a sign that retail traders are executing a new short squeeze on the stock.
Why It Matters
CEI stock has not move significantly in many months. Camber Energy stock was trading at the same level it is at now in February of this year. News of a positive development related to one of the company’s subsidiaries seems to have attracted investor attention and is leading to renewed interest in the stock.
However, news that Viking Energy has moved closer to beginning treatments of medical waste could just be a pretext for investors to execute a short squeeze on CEI stock. If that is the case, then the share price is likely to rocket higher and then plunge lower, just as it did early last fall when it was targeted for a big run up by traders.
What’s Next for CEI Stock
Investors should keep an eye on CEI stock in the coming days to see in which direction it ultimately moves. A fast and furious rally is likely confirmation that the share price is again being squeezed by retail traders. Any sustained gains in this penny stock will likely come from more significant news or news that is directly related to Camber Energy.
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On the date of publication, Joel Baglole 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.