How to Buy Camber Energy Inc. (NYSEAMERICAN: CEI) Stock

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Contributor, Benzinga
December 28, 2022
$0.1664
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Open-Close-Vol / Avg.0 / 5.197MMkt Cap24.784MDay Range- - -52 Wk Range0.150 - 1.675

Camber Energy is a stock that may appeal to traders seeking volatility. Its aggressive price movement is attributable to fluctuating gas and oil prices, as well as its reverse stock splits. 

This independent oil and natural gas company held its most recent stock split on Dec. 21, 2022. 

Leading up to the event, the stock price surged more than 150%. After the 1-for-50 reverse split, the stock lost all of its gains and continued to form lower lows, eventually setting a new all-time low (ATL).

Whether you’re bullish or bearish on this stock, you’re bound to find a trading opportunity. Beginners need not stress about missing out on potential profits as this guide provides details of how to open a trade on the CEI stock.

How to Buy Camber Energy Inc. (NYSEARCA: CEI) Stock

Below is a detailed step-by-step guide on how to trade Camber Energy stock.

Step 1: Pick a brokerage

Choosing the right broker requires you to do due diligence by checking customer reviews to gauge the standard of service the broker provides. 

Compare the fees to other brokers and ensure you have access to a large selection of stocks in case you want to trade other securities. 

Ensure that the broker is regulated and has a proven history of completing timely withdrawals. 

Step 2: Decide how many shares you want

To avoid blowing your account, you should risk only 2% of your funds on each trade. Assuming your total capital is $1,000, you should allocate only $20 to each trade you open.

Divide $20 by Camber Energy’s current stock price ($2.40) to determine the number of shares you can buy. If your broker enables fractional ownership, you could buy 8.3 shares. Otherwise, you can open a position for 8 shares.

Step 3: Choose your order type

The most common order types are market, limit and stop orders. A market order means opening a position at the market’s current best available price. Opening this position is ideal for traders who believe that the present quote is favorable and an immediate execution is required. 

Placing a market order when the market is closed will result in the trade opening at the next market open.

A limit order enables you to restrict the maximum price you’ll pay or the minimum price you’ll receive to fulfill the order. This order type is suitable in conditions when you believe you can buy a stock at a lower or sell at a higher price than the current quote.

There is no guarantee that an order will be fulfilled because it has to reach a specified limit price or preferably better.

A stop order opens a position when the market price trades at or through the stop price. When the price reaches the stop price, it executes a market order. If the stop price is not reached, a position will not be executed.

Let’s assume the current stock price trades at $100 and a stop (buy) is at $110 and a stop (sell) is at $90. A buy position would be executed when the price reaches $110, but it’s possible for the order to be executed at a higher price. 

The same applies to a stop (sell), with the order executing at $90 or a lower price.

The main reason to opt for this order type is to protect your position if you’re profitable in a position and then the price reverses.  

Step 4: Execute your trade

The order is executed when it gets filled. Your online broker receives and completes the order by sending it to an exchange or a market maker. 

Where to Buy Camber Energy 

Part of managing your portfolio risk is choosing the right broker. Besides being regulated, a broker should offer transparent, low fees and a broad range of stocks.

CEI Stock History & Value

Camber Energy Price Chart via Benzinga Pro

Camber Energy had seven stock splits, with the latest one held on Dec. 21, 2022. It was a 1-for-50 reverse stock split, resulting in the share gaining 150% leading up to the event. But the stock lost those gains after the reverse split and continued making lower lows.

This stock has been in a strong downtrend since October 2021 and has set a new ATL after its latest reverse stock split. 

The latest financials (unaudited) posted on the company’s website show a net loss of $23.2 million for Q3 2022. The only positive aspect that can be extracted is that its loss in Q3 2021 was $264 million.

The stochastic relative strength index (RSI) indicates that the price is oversold on the weekly chart. For the last three years when the price had reached the current level on the RSI, the stock was a buy.

Camber Energy: What Analysts Are Saying

The latest analyst ratings available for the Camber Energy stock are limited.

American Association of Individual Investors (AAII): Bearish Case

Camber Energy’s net losses for the last 12 months mean that investors cannot use the company’s P/E to gauge the stock. The stock received a growth grade of D, which means that its sales for the last five years are weak.

Stocks that have high relative levels of momentum usually outperform expectations and low-level momentum stocks usually underperform. AII graded Camber Energy’s momentum as an F, which is very weak.

Pros and Cons of Camber Energy

Trading Camber Energy has several benefits and drawbacks.

Pros

  • Highly volatile stock
  • Had seven stock splits 

Cons

  • Unaudited financial statements
  • Significant net losses realized regularly

Is Camber Energy Stock a Buy, Sell or Hold?

Finding analyst ratings on Camber Energy is challenging, especially ones that make a bullish case.

The company’s fundamentals look weak, and the few analyst ratings available for the stock are bearish. The only upside case that could be made is that the stock is trading in oversold territory. Most indicators on charts are lagging indicators.

Frequently Asked Questions

Q

Who owns CEI stock?

A

The majority of the stock is owned by retail investors, with a 90.16% share. Institutional investors make up about 4.52% of the stock ownership and Camber Energy insiders own 5.32%

Q

What does Camber Energy do?

A

This independent oil and natural gas company acquires, develops and sells crude oil and natural gas from various known productive geological formations. Its operations mainly focus on Central Oklahoma, South and West Texas.

About Goran Radanovic

Equities, Forex, Crypto