Ahhh, the “meme” stocks…
It has been a while since we’ve talked about them – but it may be time to circle back around to them – as something big seems to be brewing.
If you remember, last year saw the rise of the “meme” stock – which are the stocks of those companies that aren’t doing so well – but for some reason, the new generation of Millennial day trader latched onto certain stocks and made sure that they didn’t lose their value.
AMC Theaters (AMC), GameStop (GME), Blackberry (BB) and others were bought by day traders with “diamond hands” that were ready to take these stocks “to the moon.”
Some of them are still doing VERY well…
But until now, these stocks and the companies behind them, had very little to offer investors – they were almost whimsical in nature.
However…
That’s about to change – as it seems the Millennials have found their latest darling – and whimsical it is not.
It has PLENTY to offer investors – and you won’t believe what’s happened with this stock already!
While I can’t say I understand the whole “meme” stock craze…
The fact of the matter is – I don’t have to. These crazy kids these days find something that tickles their fancy and they run with it. So, trying to understand the “why” is just an exercise in futility.
So, let’s just take a look at what seems to be the latest meme stock that nobody is talking about.
Camber Energy (CEI) is a little-known, independent oil and natural gas company that comes straight to us from the heart of Texas – Houston, to be exact – and to say they’re a pretty basic resources company would be accurate.
While they have been estimated to have about 133,442 million barrels of oil equivalent and 207,823 million cubic feet of natural gas reserves – which isn’t shabby at all – the fact of the matter is…
It will never be able to play in the big leagues – as those numbers are just above those junior resource companies we used to read about in the 1980’s.
In fact, Camber Energy is one of the LEAST remarkable oil companies on the market….
There’s no disruption play… no alternative energy movement behind it.. nothing.
It’s simply a small oil and gas company that can provide a little bit of crude to the American public.
So, what made me bring up this totally unremarkable oil and gas company?
Well, it’s due to the fact that the CEI stock exploded more than 1,200% between August 21 and September 30…
That’s MASSIVE…
But it wasn’t the end of the rainbow as it then fell by 81% – then surged again by 95% just the other day!
Well, as you can guess, it’s all about sticking it to the short sellers.
This stock hasn’t traded above $1 since March – but in less than a month this thing exploded – and you can thank Twitter user MrZackMorris, a self-described “Master FURU” (fake guru) who focused in on CEI’s short status.
For those wondering, “short selling” is when someone borrows your shares of a stock, sells them and then waits to buy them back at a much lower price…
The short seller then returns those borrowed shares and keeps the difference. It should be illegal – but it’s not.
The fact is…
These traders get a real kick out of sticking to the shorters – as them buying up shares of the float (not even a big percentage at that) is enough to send shorters running for the hills and the stock to shoot up BIG.
This is what happened to CEI…
And personally, I’m all for it. I really have no love for shorters – as the fact of the matter is – they’re betting on a stock doing badly and the Gorilla thinks there’s enough negativity in this world that we can do without these folks.
Hopefully, the more this happens – the less likely these people will be willing to short stocks.
Regardless, my advice would be to stay away from CEI for now – as I wouldn’t trust it as far as I could throw an elephant…
But if you like to live dangerously – you may want to have some fun!
However, if living dangerously ISN’T your thing – you may want to give GorillaTrades a try…
We don’t worry about shorters or “diamond hands” or any of that – we simply use the hard data and numbers provided to determine whether a stock is worthy of our recommendation.
We’d love to have you on board for the next round of picks – but completely understand those that like to go it alone…
Regardless, do yourself a favor and keep an eye out for exploding meme stocks – they may not be safe – but they’re fun to watch!
“We’ve long felt that the only value of stock forecasters is to make fortune tellers look good. Even now, Charlie and I continue to believe that short-term market forecasts are poison and should be kept locked up in a safe place, away from children and also from grown-ups who behave in the market like children.” – Warren Buffett