Camber Energy (NYSE:CEI) shares are currently down 55% to trade at $1.36. The driver behind the slump is a short report released by Kerrisdale Capital. You can read the full report here.
The opening paragraph comments that “Camber is a defunct oil producer that has failed to file financial statements with the SEC since September 2020, is in danger of having its stock delisted next month, and just fired its accounting firm in September.”
More damning statements follow, seeing the stock plummet. We note a large retail following that has built up recently, and so the sell-off is likely being exaggerated due to this.
We note that similar moves have been seen this year in other retail heavy stocks, but feel this is different given the catalyst being the tangible report.
The good news: higher short interest could attract a different type of retail investor, one looking for a short squeeze.