The company recently announced the acquisition of Lineal Star Holdings, a pipeline development and maintenance company with its hands in various areas of the energy industry.
In the energy industry, a big problem is aging infrastructure. Oil pumps that aren’t working, pipelines in dire need of repair and other aging areas of the infrastructure are not only unsightly, they are locking down what could be important production.
As a result, there is always a need for the services offered by Lineal Star, and should CEI make the right moves, it could quickly grow this business to be a revenue generator far and beyond what it already is.
It’s also worth mentioning that reverse stock splits are rarely taken lightly by investors. When Camber announced their reverse split and the effectiveness of the move, the stock fell. Nonetheless, this was a very important move.
Through the reverse split, the company maintained access to an important area of the financial market at a time that couldn’t be better. With the acquisition of Lineal Star putting CEI on a stronger foundation and setting the stage for growth, maintaining its NYSE American listing is key.
All in all, Camber has been working to get through probelms with financing and its own operations. However, it seems as though we are reaching a turning point. With the stock being so oversold and undervalued, and the company making moves that will likely lead to growth, CEI is a stock to watch.
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