Be Wary as Camber Energy Stock’s Quick Gains Belie Bigger Issues

Stock Market

Over the last few weeks, Camber Energy’s (NYSEAMERICAN:CEI) stock has shown impressive growth. It dipped below 70 cents per share on April 12. That marked an inflection point from which it rose to price levels around $1 a week later.

What investors should know is that a lot of what is driving shares higher is tenuous in nature. That means it’s difficult to predict because it could change quickly. Thus, a bet on CEI stock is exactly that, a bet. But for betting men and women it makes sense to understand those factors. 

The overarching reason that 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. In regards to oil, brent crude began the week of April 18 at $113 and outages in Libya caused some pundits to become bullish.

The Joseph Biden administration announced that it would release 180 million barrels of oil from the Strategic Petroleum Reserve over the six months beginning March 31. That temporarily sent prices lower. But analysts voiced concerns that the structural deficit will remain in place. That has led to prices rebounding, a positive for Camber Energy. 

On the natural gas side, U.S. prices recently hit 14-year highs. Below normal temperatures and export strength are driving the market. Europe is seeing rising demand as it seeks to purchase non-Russian sources of natural gas in the wake of the Russian invasion of Ukraine. This too bodes well for Camber Energy.

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

On the date of publication, Alex Sirois 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.

Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks.Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.

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