What happened
Shares of Camber Energy (CEI 0.89%) climbed on Thursday, furthering the oil and gas company's torrid gains so far this year. By the close of trading today, its stock price was up 11.7% after rising as much as 27.8% earlier in the day.
So what
Camber's share price is being driven higher by three powerful catalysts. Like many energy companies, it is benefiting from surging oil and gas prices. Investors seeking to profit from the rally in commodity prices have bid up many oil and gas stocks in recent weeks.
Shares of Camber Energy rose sharply on Thursday. Image source: Getty Images.
Camber is also benefiting from investors' rising interest in businesses that could help to battle climate change. On Aug. 24, it reached an agreement with ESG Clean Energy. The deal allows Camber to secure an exclusive intellectual property license to ESG's patented carbon-capture system in Canada, as well as the right to use the technology in as many as 25 locations in the U.S.
By capturing carbon dioxide emissions from internal combustion engines, the system is designed to be a more environmentally friendly way to produce electricity. Camber says the technology could be used in a host of industries, including recycling facilities, data centers, and even cryptocurrency mining.
Now what
The third and perhaps most powerful driver of Camber's incredible stock price rally (shares are up 694% over the past month) is its surging popularity among investors on social media platforms. With more than 20% of its stock sold short, some traders view Camber as a possible short squeeze candidate.
However, attempting to compel short-sellers to exit their positions by bidding up a stock's price is a dangerous game, one that often ends badly for long-term investors. Traders who bought Camber's shares early in its recent rally have done well. But investors who buy the stock today should be aware that the company's steep ascent could quickly reverse, should traders decide to take profits and move on to the next hot meme stock.
