CEI - CEI Stock Continues Its Brutal Plunge After Responding to Short-Seller Report
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Today, investors in Camber Energy (NYSE:CEI) are seeing another wave of selling. Today’s 20% decline in CEI stock continues a bearish trend for this stock in recent days. Indeed, over the past week, shares of CEI stock have lost approximately 70% of their value at the time of writing.
Those are some pretty hefty losses.
What was a small cap stock making big moves this past month, Camber Energy’s stock price has come back down, approaching the $1 level this stock was sitting at earlier in September. A beneficiary of rising sentiment among leveraged energy plays, Camber Energy has seen intriguing moves in recent weeks.
As we noted yesterday, much of this recent bearish sentiment comes from a short report issued by Kerrisdale Capital. In this rather hefty short report, Kerrisdale suggests there are real issues investors need to be aware of. Among these, the firing of the company’s accounting firm, a going-concern warning for the company’s core asset and high levels of leverage leading to risk of default are among the chief concerns of short-sellers right now.
Short-sellers can often times exaggerate claims and incite selling volume to serve their own purposes. However, they also provide the market with useful information upon which investors can base their decisions. In this way, short sellers can be viewed as a balancing mechanism for the euphoria that can seep into financial markets.
Let’s dive into what’s driving Camber Energy lower today.
CEI Stock Down on Response to Short Seller Claims
Today, Camber Energy responded to the various claims made by Kerrisdale. It appears investors haven’t been placated by this move. The CEO of this oil and natural gas player commented,
“We are not involved in, nor do we comment on, the day-to-day trading of the company’s common stock. I can say, however, that our business relationships are legitimate and that we are firmly committed to improving the organization’s capitalization and executing on our growth strategy. With respect to the Company’s public filings, our objective is for the Company to become current on or before the expiry of the Initial Cure Period as established by the New York Stock Exchange, which is on or about November 19, 2021.”
This rather short statement hasn’t done much to address the 25 pages of concerns highlighted in the Kerrisdale report. Rather, investors appear to be viewing this statement as an admission that the analysis performed by Kerrisdale holds water, to some degree.
Accordingly, this is a stock that’s likely to see more downside pressure from here. We’ll be sure to keep you updated with any additional information as it becomes available.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
More From InvestorPlace
- Stock Prodigy Who Found NIO at $2… Says Buy THIS Now
- Analyst Who Found Microsoft at $0.38 Names #1 Pick for the AI Boom
- America’s #1 EV Stock Still Flying Under the Radar
The post CEI Stock Continues Its Brutal Plunge After Responding to Short-Seller Report appeared first on InvestorPlace.