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There are plenty of big movers in today’s session, with some bullish momentum clearly penetrating the markets to start this week. That said, certain stocks have absolutely exploded higher today, with Camber Energy (NYSEARCA:CEI) being among the key stocks on watch for many investors. Indeed, the impressive run up in CEI stock has caught some investors on guard.
As one might expect, there is some big news supporting this move. Camber Energy announced today that it is expected to buy a renewable diesel facility in Nevada. This $750 million purchase will result in Camber acquiring all interests involved in this plant, which is currently not yet operational.
Additional interest in CEI stock as a potential short-squeeze candidate is also surfacing today. This is a company with a relatively high short interest ratio, with nearly 14% of the company’s float sold short. Accordingly, given the rallies we’re seeing in other meme stocks today, Camber Energy is clearly in the cross-hairs of both speculators and long-term investors today.
Let’s dive into what to make of this rally.
Is Now the Time to Buy CEI Stock?
One of the more interesting elements of today’s rapid increase in CEI stock is the varying catalysts for this move. On the one hand, you have a fundamental catalyst that could drive positive cash flow growth over time, lifting the inherent value of the company (if analysts and investors are right in thinking Camber under paid for this acquisition.) On the other, there are speculators willing to make outlandish bets on any company that’s highly-shorted right now, and Camber fits that bill.
While I’m more of a fan of fundamental catalysts, taking a longer-term view on most stocks, CEI stock certainly has an interesting set up right now. I think this is a stock that could see a continued rally from here for some time given its incredibly low valuation and upside potential.
While the market could also turn bearish at a moment’s notice, this rally is one I think is worth keeping an eye on. If there’s one meme stock to bet on, it may be this one.
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.
Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.
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