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This was our pick
for August 10, 2021,
Camber Energy, Inc. ran for as much as a
900% gain. |
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Below is an
exact copy of our
penny stock pick
report from August 10,
2021.
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In our
"Conclusion" at the
bottom of the
report, we stated:
"We
believe we will see
CEI at $1.00 or more
fairly soon - the
next few weeks to a
month or two for a
100% gain. We
believe there is
more that is
possible, but the
overhang of
convertible shares
at $1.25 might slow
any rise for a short
while."
The stock doubled on
September 7 and ran
as high as $4.85 - a
900% rise. |
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Penny Stock Pick for
August 10, 2021
Symbol:
CEI
Camber Energy, Inc.
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Company Location
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Stock Information
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1415 Louisiana
Houston, TX 77002
Phone: 210.998.4035
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Current Price:
$0.4825 (Close on Monday, August 9, 2021)
Short Term Sell Target:
$0.65 - $0.75
Long Term Sell Target:
$0.75 - $1.00+
Exchange: NYSE American
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News Update: September 7
Congratulations! CEI has now posted a double -
100% - hitting $1.04 today.
While we do expect more gains to come from CEI, everyone should consider
booking your profits. We do believe CEI will be higher later and momentum continues,
but there is a risk of a pullback since it has doubled so quickly. Please consider taking at least some profits here.
News Update: August 24
This morning, CEI announced its majority-owned subsidiary, Viking Energy Group, Inc., entered into an Exclusive Intellectual Property License Agreement with ESG Clean Energy, LLC regarding ESG's patent rights and know-how related to stationary electric power generation, including methods to utilize heat and capture carbon dioxide. The license is exclusive for all of Canada (unlimited number of systems), and non-exclusive for up to twenty-five locations in the United States.
The ESG Clean Energy System is designed to generate clean electricity from internal combustion engines and utilize waste heat to capture
- 100% of the carbon dioxide (CO2) emitted from the engine without loss of efficiency, and in a manner to facilitate the production of precious commodities (e.g. distilled/ de-ionized water; UREA (NH4); ammonia (NH3); ethanol; and methanol) for sale.
This is excellent news for CEI and is giving the stock the attention it deserves. This should help bring investors back into the stock and give it a bounce today and that attention should help drive more momentum which is what we've been waiting for! CEI traded over $0.45 in the pre-market hours and looks to open around $0.42. If the stock can hold on here, more attention will be coming.
Company Profile
Camber Energy, Inc., an independent oil and natural gas company, engages in the acquisition, development, and sale of crude oil, natural gas, and natural gas liquids in the Cline shale and upper Wolfberry shale in Glasscock County, Texas.
As of March 31, 2020, its total estimated proved reserves were 133,442 million barrels of oil equivalent comprising 54,850 barrels of crude oil reserves, 43,955 barrels of NGL reserves, and 207,823 million cubic feet of natural gas reserves.
The company was formerly known as Lucas Energy Inc. and changed its name to Camber Energy, Inc. in January 2017.
Camber Energy, Inc. was incorporated in 2003 and is based in Houston, Texas.
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Majority Interest Acquisition
This morning (Monday, August 9), CEI announced the acquisition, through its majority-owned subsidiary, of a majority interest (60.5%) in Simson-Maxwell Ltd. Other shareholders include Simmax Corp., an existing shareholder of Simson-Maxwell for 20+ years, and Remora EQ LP, another strategic stakeholder.
Simson-Maxwell is a leading manufacturer and supplier of industrial engines, power generation products, services and custom energy solutions. The company integrates innovative technology with superior products to contribute to global energy sustainability. Operating for over 80 years, Simson Maxwell's diverse group of employees at seven branch locations service over ⁓ 4,000 maintenance contracts and assist with satisfying the energy and power-solution demands of the company's entire customer-base.
James Doris, President and Chief Executive Officer of Camber, commented, 'We are very excited to be working with Remora and the entire Simson-Maxwell team, and look forward to further strengthening an already-established platform and recognizable brand to position the company for additional expansion throughout North America through the remainder of this year and beyond.'
Daryl Kruper, Chairman of Simson-Maxwell, commented, "Our team is thrilled to partner with Remora and Viking. Having Camber as a stakeholder allows us to enhance our unique, customized service offering and to expedite our growth strategy."
Who Is Simson-Maxwell?
Simson Maxwell has been selling industrial solutions for over 80 years and is a leading Western Canadian Company in manufacturing, sales and service of standby and prime power generator systems. Today, Simson Maxwell serves over 6000 customers across Western Canada from 7 branches. Simson Maxwell is a respected distributor and major Original Equipment Manufacturer for many of the world’s largest engine and power generation manufacturers.
Simson Maxwell is internationally recognized in the power generation industry for expertise in the custom design, engineering, sales and service of quality power generation and electrical control equipment under the Simmax brand name.
Additional Equity Investment in Viking Energy
At the end of July, CEI announced the completion of another deal with its majority-owned subsidiary, Viking Energy Group, Inc., pursuant to which Camber purchased $11 million worth of common stock of Viking.
The proceeds from the transaction are to be used by Viking to facilitate the potential acquisition of an approximate 60.5% interest in a company engaged in the manufacture and supply of industrial engines, power generation products, services and custom energy solutions; facilitate the potential execution of an agreement with respect to the license of a patented carbon-capture system for exclusive use in Canada and for a specified number of locations in the United States; and for general working capital purposes.
$15,000,000 Investment from Institutional Investor
Also in July, CEI announced it closed a $15,000,000 equity transaction from an Institutional Investor. The Company plans to use the funds for working capital, new acquisitions, and other purposes.
In a separate transaction, the Company extended the maturity date of existing promissory notes from December 11, 2022 to January 1, 2024, and incorporated a conversion feature in each of the promissory notes entitling the holder to convert all or a portion of the principal amount(s) into shares of common stock of the Company at a fixed conversion price of $1.25 per share, which equates to an approx. 117% premium from the closing price of the common shares on July 9, 2021.
James Doris, President and Chief Executive Officer of Camber, commented, 'These transactions serve as significant catalysts for advancing Camber's growth initiatives. The $15M commitment by the institutional investor is encouraging and seemingly reflective of the confidence in Camber and our operations both short and long term. We are excited about the Company's future and remain focused on forging a path toward profitability and increasing shareholder value.'
CEI's Majority-Owned Subsidiary Announces Q1 Results
Back in late May, CEI announced its majority-owned subsidiary, Viking Energy Group, Inc., an independent exploration and production company focused on the acquisition and development of oil and natural gas properties in the onshore Gulf Coast and Mid-Continent regions, announced on May 24, 2021 Viking's financial results for the quarter ended March 31, 2021.
James Doris, President and Chief Executive Officer of both Camber and Viking, commented, "We are pleased with Viking's Q1 results, especially following the unprecedented conditions experienced in 2020. We are extremely encouraged with the foundation we have established, and are intensely focused on pursuing growth opportunities."
Viking's Revenue for the Quarters Ended March 31:
1st Qtr Revenue
2019 2020 2021
$9,346,592 $11,787,952 $10,494,079
Record Annual Revenues
CEI announced on March 25, 2021, its subsidiary, Viking's financial results for the year ended December 31, 2020.
James Doris, President and Chief Executive Officer of both Camber and Viking, commented, "We are pleased with Viking's results given the challenges faced in 2020. In many respects the year was about survival for E&P companies given the unprecedented price environment and market conditions, and not only did we endure thanks to the commitment and perseverance of our entire team we also managed to improve in key areas, including increasing overall revenues and reducing debt at the Viking level. We remain focused on executing on our strategy and forging a path toward profitability."
Viking Energy Group, Inc. Revenues:
Revenues:
2018 2019 2020
$7,967,972 $34,529,850 $40,266,780
Management
 James A. Doris
Chief Executive Officer, Director
Mr. Doris has over 28 years of experience negotiating a variety of national and international business transactions, and has been the driving force behind Viking’s growth. He has assembled a sophisticated and talented operational and technical team and closed several acquisitions and financing transactions to enhance Viking’s profile in the oil and gas sector and will play an integral role in formulating and executing Camber’s strategic plan going forward. Formerly a lawyer in Canada, Mr. Doris represented domestic and foreign clients regarding their investment activities in Canada for over 17 years. Mr. Doris graduated cum laude from the University of Ottawa. Mr. Doris has been the Chief Executive Officer of Viking since December 2014.
Conclusion
This is a riskier play than we normally do, but we believe that CEI is at or near a bottom and the market is missing something big. The market is the boss, but sometimes, it's not so smart. Sooner or later, it will catch up. That's how folks find undervalued plays and get in early.
CEI is an energy company that has been around for quite a while. It's had management and complete business changes and there's plenty to not be so proud of over the years. But, this is the energy sector afterall. Just like financial companies (our exprience)... Lehman Brothers, MF Global, Thornburg Mortgage, ... we've seen many buried in the graveyard with many others almost die, but to have their assets taken over and reworked. That's kind of like CEI. It's survived, and it is certainly not the same company it started out as. Even the CEO took the helm just last December.
What makes us like CEI? A company that's had numerous chances for many years? Well, the current management for one. Many might say that they're chasing the new, "shiny" object. But no, they've invested in it - and not the object itself, but a company that helps that shiny object work. We're talking about crypto-currency, of course. No, CEI and it's investment (Simson-Maxwell) are not in the crypto business, but they provide specialized energy solutions which now include the crypto miners and other financial exchange businesses.
Simson-Maxwell provides power system solutions that are optimized for cryptocurrency mining projects. Efficient, durable, and reliable systems provide maximum uptime to ensure that productivity and revenue streams are maximized. Mining certain currencies (like Bitcoin) takes an immense amount of power. Large, professional miners require huge, uninterrupted streams of electricity. On top of that, large backup power in case the lights go out.
The crypto-currency markets are going through a consolidation phase. We see it, even when others don't - yet. Just like the gambling & online sports gambling consolidation that is happening right now - literally this week. DraftKings just this week purchased Golden Nugget for $1.56 Billion. That's after Penn National Gaming announced plans to acquire betting powerhouse The Score.
Right now, we think that Rush Street Interactive (Symbol: RSI) will be the next to get acquired - perhaps by FanDual or even MGM. But, as of the time of this writing, RSI is just under $13.00, so we cannot profile it. We think RSI will soon be acquired and if the valuation of Golden Nugget and The Score hold up, $25+ could be expected.
We're not saying CEI will be acquired, not in the least. But, we're saying that major crypto miners are consolidating (or being acquired) and the larger they get, the larger CEI's Viking energy's customers become. Winning one large order will propel Viking to become a major player. Once that happens, others will follow.
On the technical side, we've noticed that every time the Slow Stochastic crossed up when the stock is in an oversold condition, it has spiked. Below, we've noted each time that has happened recently and you can see the result. It just recently happened again.
We've also noticed a lot of new chatter on social media and traders' channels. The interest with professional day/momentum/swing traders is ramping up fast. We could see a move soon and if it's quick enough, we may see a bit of a short squeeze. More than 20% of the freely tradeable "float" shares is currently shorted. There is also just 25 million shares in float right now.
CEI has extended the maturity date of its promissory notes from December 11, 2022 to January 1, 2024. These notes can be converted in part or in whole into shares. That would of course be dilutive, but they have a fixed conversion rate of $1.25 per share. So, until we reach at least $1.25, these notes will not be converted into shares and sold. We have plenty of room.
We see the interest in CEI ramping up, the stock is at or near a bottom and technical indicators are perking up quickly. To stay on the NYSE, CEI will need to trade at over $1.00. Management has already stated they believe there is no need for a reverse split to make that $1.00. In other words, they're confident they will reach the $1.00 minimim bid price soon. So do we.
We believe we
will see CEI
at $1.00 or
more fairly
soon - the
next few weeks
to a month or
two for a 100%
gain. We
believe there
is more that
is possible,
but the
overhang of
convertible
shares at
$1.25 might
slow any rise
for a short
while.
As mentioned, this is a riskier play than we normally profile. However, the risk/reward ratio is very much in our favor. CEI has a 52-week low of $0.43 and we believe a stop-loss at $0.41-$0.42 should be considered.
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