Camber Energy Inc (NYSEAMERICAN: CEI) is having an incredibly strong start to the trading session this morning, and for good reason. The company announced that it has entered into a Letter of Intent, exciting investors and sending the stock for the top. Today, we’ll talk about:
- The Letter of Intent;
- what we’re seeing from CEI stock as a result; and
- what we’ll be watching for ahead.
CEI Announces Letter Of Intent
As mentioned above, Camber Energy is having a great day in the market today after announcing that it has entered into a Letter of Intent. The announcement came by way of press release early this morning.
In the release, CEI said that Lineal Star Holdings, the acquisition target that it is working to take over, has signed a non-binding letter of intent to purchase a Houston based Engineering and Procurement firm.
The company said that it has been advised that the acquisition is designed to expand Lineal’s current service offering to a full range of engineering, procurement, specialty construction, upstream, midstream and downstream field services.
In a statement Louis G. Schott, Interim CEO at CEI, had the following to offer:
Camber is excited about this planned acquisition by Lineal of a well-respected engineering firm with experienced industry leaders. This acquisition, if completed by Lineal, is expected to be accretive to Camber as a result of Camber’s acquisition of Lineal, and will expand their collective product offerings and potential for growth after closing.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. When it comes to Camber Energy, the news proved to be incredibly positive.
After all, while Lineal is in the center of this acquisition, CEI has a Letter of Intent with Lineal to acquire the company. So, the moves the make will likely directly reflect on the long term value of CEI. As a result, it’s not surprising to see that excited investors are pushing the stock up.
As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:46), CEI is trading at $0.32 per share after a gain of $0.081 per share or 33.89% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on CEI. In particular, we’re interested in following the story surrounding the company’s continued work to expand value for investors. In particular, we’re following the planned acquisition of Lineal closely. Nonetheless, we’ll keep an eye on the story and bring the news to you as it breaks!
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