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Plainly and simply, Camber Energy (NYSEAMERICAN:CEI) stock is for the bold. It is primarily a trading tool for those hoping to chase market movement spurred by volatile gas and oil prices.

Because it is such a small company it can appreciate in price rapidly. That ability was on display multiple times recently. The stock's price increased from 46 cents per share to 75 cents per share between Feb. 22 and Feb. 24.

Russia's invasion of Ukraine began on Feb. 24 so the price jump was, of course, no coincidence. Pundits eagerly watch global political events in anticipation of their effects on the market. They take positions in penny stocks related to the events and hope for the best.

That's very likely what happened with Camber Energy. Traders saw the looming invasion of Ukraine and acted.

Repeated Opportunity for CEI Stock

Camber Energy then cooled for more than a week between the onset of the invasion and early March. But it spiked again on March 3 and soared upward from 59 cents to $1.28 by March 7.

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Exciting times for bold traders to be sure.

But almost entirely unpredictable as well. The company rarely releases press releases, and even more rarely anything of substance. There's basically very little information circulating about the company.

Traders should beware that Camber Energy isn't exactly one to play by the rules. The company doesn't seem to value transparency. That assertion is based on the fact that according to NYSEAMERICAN:

The Company is not in compliance with the Exchange's continued listing standards as set forth in Section 1007 of the NYSE American Company Guide(the "Company Guide") given the Company failed to timely file (the "Filing Delinquency") the following reports (collectively, the "Delayed Reports"): (i) Form 10-K for the 9-month transition period ended December 31, 2020; (ii) Form 10-Q for the period ended March 31, 2021; (iii) Form 10-Q for the period ended June 30, 2021; and (iv) Form 10-Q for the period ended September 30, 2021.

The company's investor relations portion of its website is filled with many similar notices. This is quite a red flag for investors. And that makes me wonder what's going on with the company. Fundamental figures are key, so let's see what's there.

Fundamental Picture

Camber Energy last reported financial results in November of 2021. Those results covered the time ending Sept. 30, 2020. That's the most recent information investors have from which to form a picture of the firm.

Those financial results are too dated to get the exchange to stop sending the company notices. However, they do provide some clarity on Camber Energy and its operations.

Remember, Camber Energy shot up in price ostensibly based on its connection to gas and oil and its relation to Russia.

During the six month period that ended Sept. 30, 2020 Camber Energy realized $91,147 of revenue from crude oil, natural gas, and natural gas liquids. That led to an operating loss in excess of $1.5 million in the same period.

It's when investors discover that the firm posted a net loss of $29.6 million but a relatively small $1.5 million operating loss that things become clearer: Camber Energy is more of a gambler than it is an energy firm. The company chalked up a $25.95 million loss from derivative liabilities during those six months.

What to Do With CEI Stock

Camber Energy is itself a company run by a management team with a massive appetite for risk. That much is evident by the firm's derivative losses which ramped up toward the end of 2020. Given that investors don't have financial statements beyond then those losses could well be worse.

The company is also a gamble for traders who want to try and time the market around events in Ukraine. It's highly unpredictable, but it can make you a quick dollar. Beyond that ability, there's nothing else worth noting about the company.

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Read More: Penny Stocks — How to Profit Without Getting Scammed

On the date of publication, Alex Sirois did not have (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.

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