Camber Energy, Inc. (CEI), an independent oil and natural gas company has increased 4.14% in the premarket trading session and is changing hands at $1.76 at the time of this writing. On Tuesday, CEI closed the day at $1.69 after surging 22.46% during the mid-day session. The reason for this continuous increase in CEI stock is a push by Twitter’s “FinTwit” community, as the stock is highly popular among the community. Let’s discuss some recent developments related to CEI stock.
Claims of securities fraud
Recently, several law firms have been investigating claims of securities fraud against CEI. On 5th October 2021, Kerrisdale Capital released a report. The report alleged that Camber had failed to file its financial statements with SEC since September 2020. The report said that CEI stock is in danger of getting delisted next month. Due to the same reason, CEI fired its accounting firm in September. Further, the report highlighted that the company only has one real asset, which is a 73% stake in OTC traded company having a negative book value. Kerrisdale Capital also said that the market is mistaken about the company’s share count and doesn’t know its terrible capital structure as evident from the fact that its fully diluted share count is about triple the widely reported number. As a result of the allegations, CEI stock fell a monumental 50% and law firms started investigating the claims on behalf of its investors.
CEI subsidiary Viking Q2 2021 financial results
On 17th August, the majority-owned subsidiary of CEI, namely Viking Energy Group Inc., reported the financial results for the second quarter of the fiscal year 2021 which ended on 30th June. Camber owns approximately 73% of the issued and common outstanding shares in Viking. The company generated a record revenue of $10.69 million against the revenue of $9.54 million for the same period of 2020 and $8.73 million for the same period of 2019. James Doris, President and Chief Executive Officer of both Camber and Viking, commented on the results that Camber is pleased with Viking’s outstanding results. Further, he said that the company is excited about the steps it has taken to for strengthening the organization, the prime among them being Viking’s acquisition of a major interest in Simson-Maxwell Ltd.
Future for CEI
The recent developments, however, haven’t much affected the performance of CEI stock. During the last three months, CEI stock has burgeoned by more than 200%. Analysts believe that the recent boom in oil prices could provide Camber with a chance to improve its business model.
