cam power (New York America:the) It was a penny stock for some time. Penny stocks are risky stocks primarily because they tend to have a low market capitalization, and their stock price is highly volatile. While you can find penny stocks of diamonds in the rough — a stock with great prospects and strong fundamentals — CEI stocks are not one of them.
Back in October 2021, I wrote an article arguing that CEI stock is a volatile and risky game for the energy sector. I explained that the late reports are a trigger for the run and that massive inventory dilution has been bad for the stock price. The lack of strong fundamentals made this energy stock a poor candidate for growth and value investors.
You’ve also highlighted the risks of delisting the stock soon. Not much has changed in the months since my previous article, although there has been news regarding funding activities.
Continuing delinquency from cam
In my October 2021 article, I wrote that Camber Energy last published its Form 10-K in June 2020 and its latest 10-Q Report was filed in December 2020. Camber corrected this in November when it published its Form 10-K/A for the fiscal year ending in March 31, 2020 and form 10-Q/A for the quarter ended September 30, 2020.
Is this an improvement in its obligations as a general trading company to report information in a timely manner and file all necessary SEC filings? Look at the company’s latest press release to find out:
Camber Energy… announced that on January 4, 2022, it received a letter from NYSE American… in which it notified the exchange that the company was not in compliance with the criteria for continuing listing as set forth in Section 704 of the NYSE American Company because the company did not hold an annual meeting. for the fiscal year ending December 31, 2020 by December 31, 2021.”
However, the company said it plans to fix this delay by hosting an annual shareholder meeting after all required SEC filings are required.
Camper Energy has reassured its investors that this letter does not have any negative impact on its listing on the New York Stock Exchange, only that the “BC” index will be pasted on its trading symbol.
Another press release worth reading is one from October in which CEO James Doris says “Our business relationships are legitimate and we are deeply committed to improving the capitalization of the organization and implementing our growth strategy. With respect to the Company’s public filings, our goal is for the Company to become effective on or before the processing period ends. Initial as determined by the New York Stock Exchange, on or about November 19, 2021.”
What can we take away from this? First, the company’s failure to meet deadlines shows a worrying lack of reliability.
Second, this is an expression of arrogance and disrespect on the part of Kamber for the rules and obligations of publicly traded companies and for the integrity of the financial and capital markets. The stock market is not a circus. It has established rules, obligations and regulations to protect investors.
Camper’s latest fundamentals date back to 2020, and we’re now in 2022. What do investors know about the latest business and financial performance over the past quarters? nothing.
I don’t know why NYSE American has been so nice about this delinquency, and I’m surprised Camper hasn’t been taken off the list yet.
The bottom line on CEI . stock
Meanwhile, Camber Energy announced that it had closed a $100 million equity transaction with an institutional investor and that it had closed a $25 million equity transaction with institutional investors for a loan with a maturity date of January 1, 2027.
This will only further dilute the CEI stock.
For the quarter ended September 2020 (again, the most recent report reported by the company), the company reported a net loss of $22.31 million on revenue of $57,458. This is with a market capitalization of approximately $200 million.
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At the date of publication, Stavros Georgiadis, CFA (directly or indirectly) did not hold any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author, and are subject to InvestorPlace.com’s posting guidelines.
Stavros Georgiadis is a CFA Certified Equity Research Analyst and Economist. Focuses on US stocks and has his own stock market blog at the address thestockmarketontheinternet.com/. In the past he has written various articles for other publications and can be accessed on Twitter and on other sites LinkedIn.