Camber Energy (NYSEAMERICAN: CEI) is a hot stock right now, with shares up 13% in the last five days and a whopping 82% over the past six months.
What has caused all this excitement for CEI stock though? Well, there does not seem to be any specific company-related news coming from the oil and gas firm. But, that has not dampened sentiment. It looks like good ol' meme stock investor momentum yet again.
This flurry of excitement for the company kicked off when an SEC filing revealed that Camber Energy is not planning for a reverse stock split, which resulted in a market rally. Last week, the energy and power solutions provider was one of Yahoo Finance's trending tickers, proving how much interest has spiked.
This is quite a turnaround for the previous penny stock, which is currently trading at $1.44 -- considering that it sold for just $0.34 per share less than two months ago.
Meme stock investors are also pointing towards the recent success of Viking Energy (OTCMKTS: VKIN), which is a smaller subsidiary of Camber Energy, whose shares are up almost 68% in the last six months. However, it's important to note that Viking stock has since fallen 6% in the last month and almost 24% in the past year.
When CEI rebounded on its journey to the moon, meme stock investors said it had the ability to brush off the negative effects caused by a short report from investment firm Kerrisdale Capital. This report only drove up attention for the stock as meme investors are looking for companies with high levels of short interest. Basically, they love betting against Wall Street hedge funds. The investment firm apparently received so much hate on social media for the short report, that Kerrisdale had to tweet:
"We've received quite a number of angry msgs & mean DMs, emails, voicemails in the past few days, as well as dozens of 1-star google reviews. May we suggest online anger management counseling from the kind people at https://t.co/lIEhik3cvJ. Use coupon code $CEI for 10% off."
The short answer is no, CEI stock is not a good investment. It is a penny stock and the recent attention around the company is purely hype.
CEI is also classed as a meme stock, which means it is subject to severe volatility. While it may be on the rise, there's very little stopping it from plummeting. We must remind ourselves that a most of the people discussing these meme stocks are not professional stock analysts, so we advise you to do your own research before buying any stock.
CEI is not the only oil and gas company experiencing severe volatility at the moment either. The ongoing energy crisis is now global, which means that investors who expect these shortages to go on for a long time are turning to natural gas stocks. Clearway Energy and SolarEdge Technologies might just be better long-term energy investments that investors might want to consider instead of CEI.
Before investing, it is important that investors do their own due diligence on this stock to see if it is a good long-term investment.
If you want to skip those lengthy steps, alternatively, you can check out our shortlist of analyst-backed investments. Click here to start your free access so you can start accumulating long-term wealth.
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