Shares of the CEI stock were popping high in the premarket trading session today on October 7, 2021, after facing a huge decline in the previous market. CEI stock price saw a surge of 34.28% to reach $1.22 a share as of this writing. The stock saw a downtrend of 40.62% bringing down the per-share price to $0.91 at the previous closing. Let’s try to understand the reason behind this bull.
Kerrisdale Claims Regarding CEI stock:
Two days ago, Kerrisdale Capital made several claims related to Camber Energy. Kerrisdale claimed that CEI stock is in danger to be delisted in the next month. Kerrisdale asserted that CEI stock owns only a real asset of a 73% stake in an OTC-traded company with negative book value. Furthermore, Kerrisdale also alleged that the market is not aware of the Camber’s horrified capital structure and pointed to the heavy dilution over the last few years.
Due to these allegations, various law firms started an investigation against Camber stock that resulted in a huge decline in per-share price.
CEI stock response:
In response to the allegations made by Kerrisdale Capital, CEI stock made it clear that the company is not involved in any wrong act. The president and CEO of the Camber stock said that the company’s business relationships are legitimate, and the management is striving hard to ensure the capitalization of the firm and execution of its growth strategy.
How Camber stock again bounced back?
It is the common thing that every action brings the reaction, and this seems to be fit with CEI stock so far. Huge declines in the per-share price created the opportunity for investors and as a results bulls have fought back. Moreover, investors in the social media platform are siting that this stock will further move up, creating the stock bullish in today’s premarket.
Camber’s Subsidiary News:
Viking Energy Group Inc, which is the subsidiary of CEI stock announced second-quarter 2021 financial results on August 17, 2021, according to which
- Revenue increased from $9.55 million in Q2,2020 to $10.69 million in Q2,2021.
- Net loss improved from $16.56 million in Q2,2020 to $13.31 million in Q2,2021.
- The company reported an adjusted EBITDA of $4.29 million in the second quarter of 2021.
- Stockholders’ deficit improved by $1.25 million since December 31, 2020.
- The company had $13.31 million in current assets by the end of December 2021.
The short squeeze phenomenon is driving the CEI stock price high in the premarket today. However, one must understand that the stock’s upward price movement comes back quickly after the short squeeze. Hence investors must be aware of all facts and figures before making any decision.