Camber Energy (NYSE:CEI) has not filed its 2021 financials and has until May 20 to do so according to a recent filing. But this has not stopped the company from making a series of acquisitions that have pumped up CEI stock.
Camber’s main subsidiary has announced the acquisition of a renewable diesel production over the past few months. Its market valuation is now over $313 million according to Yahoo! Finance. This is despite the fact that investors don’t know exactly how many shares are outstanding.
In fact, on March 25, the company disclosed that its previous financial statements regarding its investment in Viking Energy should not be relied upon. Camber Energy has to release financial reports before investors are no longer in the dark. They need to know how much dilution has actually occurred with its new acquisitions.
I wrote about this on Sept. 30, when CEI stock was at $3.82. Since then it has cratered to 87 cents as of April 15, although it has been as low as 47 cents in February. Since then there has been very little detail about the proposed business plans of the company and how it will be able to make money from its recent acquisitions.
Investors in CEI Stock Face Dilution
In fact, as one Seeking Alpha analyst recently pointed out, Camber Energy increased the number of shares it can issue up to 1 billion from 250 million. The dilution associated from its capital raises and acquisitions is likely to use much of the 1 billion shares.
As a result, investors are likely to stay on the sidelines for the time being. They may want to read through all the required disclosures of the company in its required 10-K filing.
This also has to include recent developments. That way investors can see what is actually the present state of play in terms of dilution.
On the date of publication, Mark Hake did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.