Beware as Camber Energy Stock’s Rapid Gains Hide Bigger Problems

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Over the past few weeks, Camber Energy (NYSEAMERICAN:IEC) stock showed impressive growth. It fell below 70 cents per share on April 12. This marked an inflection point from which it moved to price levels around $1 a week later.

What investors need to know is that much of what drives stocks higher is tenuous in nature. This means that it is difficult to predict as it could change quickly. So a bet on CEI stock is exactly that, a bet. But to bet on men and women, it makes sense to understand these factors.

The main reason Camber Energy is important right now is that the company operates in the oil and natural gas industry. It sells crude oil and natural gas which is highly volatile given geopolitical tensions. As for oil, Brent started the week of April 18 at $113 and outages in Libya have some pundits getting bullish.

The Joseph Biden administration has announced that it would release 180 million barrels of oil of the Strategic Petroleum Reserve for the six months beginning March 31. This temporarily lowered prices. But analysts have expressed concerns that the structural deficit will remain in place. This led to a price rebound, a plus for Camber Energy.

On the natural gas side, U.S. prices have recently reached 14 year highs. Cooler than normal temperatures and strong exports are boosting the market. Europe is seeing growing demand as it seeks to buy non-Russian sources of natural gas following the Russian invasion of Ukraine. This too bodes well for Camber Energy.

But everything should be taken with a grain of salt. Camber Energy has not filed financial reports since September 2020. The company recently announced that it received an extension deposit from NYSE American stock exchange on which it is listed. This extension will allow Camber Energy to file its case by May 20. That means investors are largely guessing what all of this means in terms of Camber Energy’s fundamental performance.

At the date of publication, Alex Sirois did not hold (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to Publication guidelines.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.