Camber Energy (CEI:Nasdaq) perhaps ended its bull run on Tuesday October 5, 2021. For the last many days its going vertical, breaking old highs. In the last three days its come crashing down based on news about a short squeeze.
Camber Energy management was intentionally misleading investors about their prospects. Their production numbers were fudged, they could not service debt and there were no profits in sight because the entire company was a fraud.
The investors have lost confidence in them which has led to this fall. The stock price fell from $6 to $1.90 at the end of trading today which is an instant 60% loss for shareholders who are rushing to sell out. We suspect that CEI will soon delist itself from Nasdaq as it will be unable to achieve the required market cap of $35 million. We expect its volume with fall drastically since nobody would want such a risky stock on their portfolio anymore even if it is available at dirt cheap prices.
Camber Energy had been the darling of the Wallstreet Bets crowd, and a favorite of the social media meme stock phenomenon. If memory serves right, its history repeating. If the last 14 months are any indication of meme stocks, then lets not forget Gamestop (GME: NYSE). It went froma $2 stock to $400.
Such big moves are prevalent these days. Perhaps the stimulus checks are on Wall Street.