Camber Energy CEI Stock News

Camber Energy Inc (NYSEAMERICAN: CEI) is falling in the market yet again, trading on losses of more than 6%. While some may be on the edge of their seats, waiting on an exit opportunity, I view this as an opportunity for long-run gains at a discount with several catalysts ahead.

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CEI Tumbles After Announcing Regulatory News

In a press release issued early this morning, Camber Energy announced an update with regard to regulatory filings surrounding the Lineal Star Holdings acquisition.

In the release, CEI said that Lineal Star Holdings is working with the company’s auditors to prepare Linial’s financial statements. These statements must be filed with the SEC within 75 days of the closing of the Agreement and Plan of Merger.

In a statement, Louis G. Schott, Interim CEO at CEI, had the following to offer:

We are continuing to work towards completing the audit of the financials of Lineal as required by SEC rules and requirementsand anticipate it will be filed on a timely basis.

There Are Several Catalysts To Look Forward To Ahead

While Camber Energy has been on a downtrend since hitting highs on July 9, 2019, these declines may be nothing more than an opportunity to get in on long term growth at a discount. The truth of the matter is that there are multiple catalysts ahead.

First and foremost, once required financial filings are submitted to the SEC, the company will likely issue a new press release announcing the progress. As such, this press release will likely act as a positive catalyst.

Moreover, the recent acquisition of Lineal Star Holdings is a highly accretive one. Lineal has been in operations for more than six decades and is a strong revenue generator, as such, any reports surrounding revenue as a whole or from the Lineal Star acquisition could send the stock on a run for the top.

Investors are also likely to be happy once they see that costs are likely to drop. Lineal Star provides pipeline and other services, the same services that CEI needs in its operations. As a result of the acquisition, the cost of these services will likely be dramatically reduced, setting the stage for cost-cutting related catalysts ahead as well.

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The Bottom Line

It’s not uncommon to see the bears grab hold of a penny stock and drag it down after seeing tremendous gains. This seems to be just what’s happening here. However, that’s not a bad thing for two reasons. For the long term investors, the declines are opening the door to long term gains at a discount. For the short term traders, the bearish activity is setting CEI up for a short squeeze that could produce tremendous short term profits.

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