Camber Energy Inc (NYSEAMERICAN: CEI) is flying early on in the trading session this morning, and for good reason. The gains come shortly after the company announced the closure of a key transaction and oil continues to climb in value. Today, we’ll talk about:
- The reason for the gains;
- what we’re seeing from CEI stock; and
- what we’ll be watching for ahead.
Why CEI Is Climbing
As mentioned above, Camber Energy is having an incredibly strong start to the trading session this morning. The gains following an announcement made on Thursday of last week that it has closed a strategic transaction. The transaction in question was the sale of assets to N&B Energy. This was a key transaction for CEI as it completely wiped the company’s debt with IBC off of the table, getting rid of the need to make more than $450,000 per month in debt payments.
While that news is starting to get stale, what it has done was set CEI on a solid financial foundation to take advantage of future opportunities, which leads us to why the stock is gaining today. As Camber Energy finds itself on a stronger financial foundation with the ability to capitalize on market trends, the trend in the oil market is starting to heat up.
At the moment, oil prices are climbing to four-year highs with the world paying attention to a key factor, Iran. Official sanctions against Iranian oil exports are expected to start in about a month. Exports from Iran have already fallen by around 30% and continue to do so. With one of the oil from one of the world’s largest oil producers being shed from the market, oil is climbing in value. Of course, that’s good news for CEI.
As the company continues to restructure, taking advantage of its stronger financial position, the market is ripe with opportunity. This sets CEI in the midst of a perfect storm, giving it the opportunity to take advantage of market trends in ways that it has not been able to in the past, and exciting investors.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn is that the news moves the market. In the case of Camber Energy, the news over the past few trading sessions has been great. Not only has the company wiped out a massive amount of debt, it is in a strong position to take advantage of the gains that we’re seeing in the price of oil. So, it comes as no surprise to see that excited investors are sending the stock on a run for the top. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. At the moment (10:58), CEI is trading at $0.33 per share after a gain of $0.039 per share or 13.22% 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 work to take advantage of its new financial position and the strong trends were seeing in the oil market. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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