Benzinga
Published Dec 19, 2022 18:44
Updated Dec 19, 2022 20:10
Camber Energy More Than Doubles Ahead Of 1:50 Reverse Split: What's Going On?
Benzinga - Camber Energy Inc (ARCA: CEI) was skyrocketing more than 100% at one point on Monday after announcing it bumped up the date of its 1-for-50 reverse split to Wednesday, Dec. 21.
After the reverse stock split takes place, Camber Energy’s common stock will be reduced from 1 billion shares to 20 million shares outstanding. The greatly reduced float could tip the scale of supply versus demand in favor of investors.
Reverse stock splits aren’t usually a good sign, however. A reverse split can be a sign that a company is struggling financially and in Camber Energy’s case, the company could have been in danger of being delisted due to the stock price falling almost 100% since Sept. 29, 2021, to reach a low of 6 cents on Friday.
Although shareholders’ equity in Camber Energy won’t change based on the reverse split, the event could kick off a short period of high volatility. Traders and investors who aren’t already in a position may choose to wait until Camber Energy settles into a new pattern after the split takes place.
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The Camber Energy Chart: When Camber Energy surged on Monday, the stock negated its long-term downtrend which began on March 9. For a new uptrend to occur, Camber Energy will eventually need to retrace lower to print a higher low above 6 cents.
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