Camber Energy (NYSEAMERICAN:CEI) Stock Sees High Volatility After The Big Jump

In this day and age, social media has become a very popular but largely unreliable resource for stock recommendations. Last month a popular Twitter account had raised the price target for the Camber Energy (NYSEAMERICAN:CEI) stock to $10 a share.

Market Stats

On Thursday, CEI stock increased 3.64% to $1.14 with more than 24.31 million shares, compared to its average volume of 205.4 million shares. The stock has moved within a range of $1.0800 – 1.1700 after opening the trade at $1.09.

Key Updates

However, nothing of the sort happened and the stock has in fact tanked by as much as 61% since that tweet. The company is involved in the oil and gas space and investors who are looking into penny stocks in this particular space could do well to stay away from the Camber Energy stock at this point.

First and foremost, the company has not actually reported its financial results since June last year and on top of that the numbers of common outstanding shares have also gone up at a remarkable rate.

Due to that sort of dilution, it appears quite difficult for the Camber Energy stock to hit $10 a share any time soon. In June 2021, the company had revenues of $33,689 and that was way lower than the $121,351 that it had generated in 2020. Hence, it might be a good idea for investors to look into other penny stocks from the same sector rather than Camber Energy.

Traders Corner

CEI stock is trading below the 20-Day and 50-Day Moving averages of $1.35 and $4.55 respectively. Moreover, the stock is trading below the 200-Day moving average of $3.99. The stock is down 30% in the past 3-month.