Camber Energy Stock Price Fell for the 5th Consecutive Day As Investors Cut Their Losses

Practice Stock Trading Your capital is at risk
Simon Mugo
Updated: 6 Oct 2021

Camber Energy Inc (NYSEAMERICAN: CEI) stock was down 20.26% during premarket trading and was set to open lower for the fifth consecutive day as investors cut their losses and short-sellers pushed the stocks towards zero.


Yesterday’s massive 50% drop was triggered by a scathing report published by Kerrisdale Capital detailing the oil company’s wrongdoings, including not filing its financial statements for over an entire year.

The report also detailed how Camber Energy had misrepresented some critical facts about the company, including its ballooning share price driven by the impeding conversions into shares of outstanding convertible notes and other loans.

Camber Energy is also stuck with some bad loans that require it to pay an annual non-cash dividend of 24.95% due to a preferred share structure that gives significant control of the company to the Discover Growth Fund.

The company continues to issue preferred shares in exchange for debt, having accumulated convertible debt worth $20.5 million over the past year, further diluting shareholders after the conversion.

The report by Kerrisdale Capital also focused on Camber Energy’s primary subsidiary, Viking Energy, of which it owns 73%. The subsidiary had $15 million in negative shareholder equity, with 48% of its $101.3 million debt maturing in 12 months.

Viking is clearly in dire financial straits, but this was not all; Elysium Energy, a Viking subsidiary, is in violation of a secured debt covenant, which means that the debt is most probably due now.

Viking is also accused of having a fictitious CFO for several years between 2014 and 2016 in Cecile Yang, a Shanghai, China resident. Viking’s founder used to forge her signature to sign official documents whenever needed.

The report also faulted James Doris, the CEO of both companies, for letting the founder’s practices go unreported since he had no problem with the arrangement.

Investors who bought Camber Energy shares since the start of September driven by recommendations on social media and kept buying up to their prior high of $4.84 could be sitting on massive losses if they did not take profits on their positions.

Investors should carefully analyse the recommendations issued by influencers as they could lead to massive losses for those who buy at the peak of the meme stock rallies.

*This is not investment advice.

Camber Energy stock price.

Tradingview chart of Camber Energy stock price 06-10-2021

Camber Energy stock has fallen for the past 5 consecutive trading sessions as investors flee.

Should You Invest in Camber Energy Shares?

One of the most frequently asked questions we receive is, “what stocks are best to buy right now?” It's a wide-ranging question, but one that we have answered… Our AskTraders stock analysts regularly review the market and compile a list of which companies you should be adding to your portfolio, including short and longer-term positions. Here are the best stocks to buy right now

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage . 68 % of retail investor accounts lose money when trading CFDs with this provider . You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money .