Why are Camber Energy stocks plunging back today?

Why are Camber Energy stocks plunging back today?

Kerrisdale Capital said the company’s only real asset is a 73% stake Viking Energy, “an OTC-traded company with negative book value and a going-concern warning that recently violated the maximum-leverage covenant on one of its loans.”

Short Report: Kerrisdale Capital called Camber Energy a “defunct oil producer.” The short report claims the company has failed to file financial statements with the SEC since September 2020. The report also warns that Camber Energy recently fired its accounting firm and “is in danger of having its stock delisted next month.”

Highlights

  • The stock is overwhelmingly popular among Twitter’s “FinTwit” community, where traders and investors use the Twitter platform to share ideas and discuss all things finance.

  • The report calls out “Camber pumpers” for focusing on the company as a play on carbon capture and clean energy, but notes that Camber Energy’s “‘ESG Clean Energy’ technology license is a joke.”

CEI Response: Camber Energy responded to the short report from Kerrisdale Capital:

“Camber has been a penny stock before – no more than a month ago, in fact – and we expect that it will be once again,” said Kerrisdale Capital.

“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,” said James Doris, president and CEO of Camber Energy.

Camber Energy is engaged in the acquisition and development of crude oil and natural gas from various known productive geological formations.

CEI Price Action: Camber Energy has traded as high as $4.85 and as low as 33 cents over a 52-week period. Story continues

The stock was down 17.30% at $1.26 at time of publication. See more from Benzinga

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