Camber Energy (NYSEMKT:CEI) has finally completed a long-standing deal, but it isn’t doing much for the price of CEI stock today. The company has been one of 2023’s biggest losers, shedding more than 50% of its value year-to-date (YTD) and more than 95% for the past one year. Currently, CEI trades at less than $1 per share, proving unable to garner any momentum even when it has good news to report.
Camber kicked off the month of August by announcing that it has completed its acquisition of fellow energy company Viking Energy (OTCMKTS:VKIN). While this should have been a positive development, CEI stock has been highly volatile since markets opened today. As of this writing, shares are about 2% in the green. However, the stock could slip back down just as quickly.
What’s Happening With CEI Stock?
The fact that CEI stock is struggling to garner real momentum isn’t surprising. A highly unstable company, it has stayed relevant throughout its 2023 losing streak primarily due to its meme stock status. However, even its retail investor following hasn’t helped shares escape their overwhelmingly negative market momentum.
Of course, shares rose in July 2023 on reports that Camber shareholders had approved the Viking merger. But the actual deal going through hasn’t helped CEI stock. This type of development is reminiscent of stocks like Mullen Automotive (NASDAQ:MULN), which have managed to fall even on days with positive growth catalysts.
Camber’s problems aren’t all company-specific. It’s also battling macroeconomic headwinds. Specifically, it has the misfortune of being a small-cap oil and gas company operating in an economy that’s quickly transitioning toward clean energy. As InvestorPlace contributor Alex Sirois notes, this puts significant strain on many companies, but particularly on firms with financials as questionable as Camber’s. The fact that the company’s market capitalization is only $21 million should make any investor nervous as well.
Now, Camber has reached the only positive catalyst it had left on the horizon. Given how CEI stock is reacting to this news, it’s clear the company is on its way out. Larger oil producers may hold their own as the clean energy transition continues, but for struggling small caps in the space, the outlook is dismal.
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On the date of publication, Samuel O’Brient did not hold (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.
