Camber Energy Inc. (NYSE: CEI) shocked investors with a surprising announcement in August which helped launch CEI stock from $0.48 per share to $4.32. In the announcement CEI shared that it has signed through its subsidiary an exclusive intellectual property license agreement with ESG Clean Energy. This agreement has brought notable gains to CEI’s shareholders because it gives CEI the rights to a system which captures 100% of the CO2 generated by internal combustion engines. 

CEI Stock Catalysts

If the system lives up to expectations, then this potentially groundbreaking technology could place CEI at the top of the carbon capture game. While other systems may reduce a part of the CO2 generated, CEI’s intellectual property could shape the industry as a whole. 

According to ESG, the Clean Energy System generates clean electricity directly from internal combustion engines. This process uses “waste heat to capture 100% of the carbon dioxide emitted from car engines without loss of efficiency”. This is definitely an incredible asset for CEI and its shareholders will likely see returns on their investment as the company utilizes its intellectual property in new ways. A lucrative byproduct of this system is the distilled or deionized water, ammonia, ethanol, and methanol which is created as a result. These are all valuable commodities which can be sold for additional profits. 

CEI’s technology is especially appealing because it can be applied to a range of industries such as plastics recycling, nitrogen removal, microgrids, data centers, and crypto mining operations. However new applications for the system are sure to emerge which could present additional revenue streams for CEI. 

It appears that the system will allow operations to run conventional gasoline or natural gas engines while reducing the operation’s carbon footprint to zero percent. Not only is this good for the environment, but given increasing regulatory pressure many companies could benefit from the services CEI now offers. 

CEI appears well aware of this edge as its CEO James Doris shared, “this transaction positions us as an industry leader in terms of being able to assist with the power generation needs of commercial and industrial organizations while at the same time helping them reduce their carbon footprint to satisfy regulatory requirements”. 

Momentum

However, momentum has also been a major factor of CEI stock’s success. The FinTwit and WallStreetBets community took CEI to the next level but Atlas trading group was particularly influential in CEI stock’s runup. Together, this combined momentum was enough to push CEI stock over the top. But, given CEI’s incredible 822% increase over the month of September, CEI has now become one of the most heavily shorted stocks on the market. In just two weeks, raw short interest in CEI stock jumped by a whopping 298% – from 6 million shares at the end of August to 24.4 million by mid-September. 

CEI Stock Short Squeeze?

Whether this creates a short squeeze remains to be seen. But shorts are now under significant pressure because CEI stock momentum did not die down as early as expected. In an undoubtedly illegal ploy- a fraudulent ‘draft prospectus’ from CEI was released and shared widely across social media. Discussing an offering of up to $150 million worth of shares at $1.80 a share, the fake press release triggered a massive selling frenzy among investors on September 29th. The perpetrators even took it a step further by creating fake FinTwit influencer accounts telling followers they were dumping their shares. 

CEI stock fake PR

CEI has already announced that this offering is fake and news of the deception is being shared between investors. This attempt to flush the stock was designed for the benefit of major shorts who appear to be becoming desperate. 

Media Sentiment

@MrZachMorris – a sharpshooter when it comes to stock picks and trips to Miami – is giving shorts a real run for their money.

Technical Analysis

CEI stock chart

CEI stock started the month at $0.48 before peaking at $4.32. CEI stock is currently trading at $3.94, with a primary support line at $3.19, and a secondary support at $1.75. Accumulation has been building but after the fake PR it took a tumble. Today CEI stock largely recovered as did accumulation. However CEI recently had a bearish crossover and its RSI is cooling off at 60.36.

Should You Buy?

While CEI stock is fundamentally overvalued now, like all momentum plays CEI could have a long way to go. Added momentum from its short squeeze potential may push the stock to a price target of $8 – but many are predicting a more bullish price target of $10. Still it’s important to note how volatile CEI can be and the risk this presents considering investors’ reaction to the fake PR stunt.

Yet in the long-term CEI has obvious potential. Fundamentally the company’s intellectual property presents a lucrative product that could generate a significant return on investment for shareholders bullish enough to hold it over the long term.

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