Please ensure Javascript is enabled for purposes of website accessibility
Free Article Join Over 1 Million Premium Members And Get More In-Depth Stock Guidance and Research

Why Camber Energy Stock Surged Today

By Joe Tenebruso - Sep 28, 2021 at 6:26PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Is this the next big short-squeeze candidate?

What happened

Shares of Camber Energy ( CEI 2.68% ) jumped 18.4% on Tuesday, as investors on social media sites ramped up their bets on the power solutions company. 

So what

Camber's majority-owned subsidiary, Viking Energy Group, owns interests in oil and gas fields in Texas, Louisiana, and Mississippi that collectively contain more than 145 active wells. Camber is also expanding into sustainable energy solutions to diversify its business and profit from the growth of alternative fuel sources.

Its stock is up a staggering 722% since it struck a deal with ESG Clean Energy on Aug. 24 to secure an exclusive license for its patented carbon-capture system. The system uses waste heat to capture nearly all the carbon dioxide emitted from internal combustion engines. In this way, it's designed to produce clean electricity without any efficiency losses.

"In my view, this transaction positions us as an industry leader in terms of being able to assist with the power generation needs of commercial and industrial organizations while at the same time helping them reduce their carbon footprint to satisfy regulatory requirements or to simply follow best ESG practices," Camber CEO James Doris said when the deal was announced. 

An upwardly sloping stock chart.

Shares of Camber Energy have soared over the past month. Image source: Getty Images.

Now what

Yet while this technology is intriguing, Camber's meme stock status is also contributing to its recent stock price gains. The company has become popular among traders on Twitter and other social media sites. With nearly a quarter of its stock sold short as of mid-September, according to Yahoo! Finance, many of these traders have identified Camber as a potential short-squeeze target. By bidding up its share price, they hope to force short sellers to close their positions.

This forced buying on the part of the bears can accelerate a rally in a heavily shorted stock's price. However, once a squeeze ends, the stock's upward price movements can quickly reverse -- and investors who buy late into the rally can suffer brutal losses.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Camber Energy, Inc. Stock Quote
Camber Energy, Inc.
$1.15 (2.68%) $0.03

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 12/08/2021.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Our Most Popular Articles

Premium Investing Services

Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.