Camber Energy CEI Stock News

Camber Energy Inc (NYSEAMERICAN: CEI) is making a run for the top in the market this morning, following up on the strong gains that we saw from the stock last week. Interestingly, the company has issued no news that would generally act as a catalyst to this type of movement.

In fact, the growth in volume and share price was so unusual that the company issued a press release stating that they are unaware of any material cause for the movement. Nonetheless, reading between the lines in the CEI release tells us that something is likely coming. Here’s how I see it:

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Is Something Big Going To Send CEI Stock Soaring Further?

First and foremost, it’s important to keep in mind that anything I say here is going to be speculation. At the end of the day, Camber Energy has said that they are unaware of the reason for the gains, and I’m going to attempt to uncover that reason for you.

With that said, I believe that recent gains in CEI have to do with short sellers abandoning ship. Due to recent dillutive transactions and reverse splits, the stock has been the subject of quite a bit of shorting.

However, no matter what stock you’re looking at, there’s just about always a floor somewhere, and it seems as though this one has found it. As such, as the stock started moving up, short sellers are racing to cover their positions, sending it further.

Noentheless, I don’t believe that we’re nearing the end of the tremendous gains in CEI. This view has nothing to do with shorts, but everything to do with the statement the company made when it said that it is unaware of any material information that is sending the stock upward.

In a press release issued last week, CEI said:

Camber confirms that although it is customarily involved in ongoing discussions with multiple parties regarding potential transactions, it is not currently aware of any material undisclosed information which is binding on the Company, that may be contributing to the recent increase in trading volume and increase in market price. The Company is continuing to undertake those plans and efforts outlined in its Quarterly Report on Form 10-Q for the quarter ended September 30, 2019, including, but not limited to under the section entitled “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations” – “Liquidity and Capital Resources”.

Reading this note from the press release tells us a couple of things. First and foremost, Camber Energy is in discussions with a number of parties with regard to potentail upcoming transactions. What these transactions might be, well, noone knows quite yet, but most deals announced are positive and it’s clear that these discussions have the potential to lead to catalystic news.

It’s also worth mentioning that CEI made it clear that the company is continuing to work on initiatives that were outlined in its most recent financial report.

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The Bottom Line

The bottom line here is simple. While there is no clear catalyst for the movement that we’re seeing in CEI at the moment, the company is likely working on multiple deals that could act as catalysts ahead. So, as shorts continue to abandon the ticker, there’s an opportunity for strong gains ahead should the company close one or more of the deals that are likely sitting on its desk at the moment.

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