In recent days, Camber Energy (NYSEAMERICAN:CEI) has spiked for the first time in months. Obviously, due to what’s playing out at present with oil prices. Crude oil prices are hitting levels they haven’t reached since 2008. Now investors are piling back into anything oil-related, which includes CEI stock.

But while this development is resulting in an unexpected boost for Camber shares, that may not be the most interesting thing with this low-priced energy stock. Instead, the catalyst that put it on many people’s radars last year (its move into clean energy) remains what could send it to much higher prices in the long run.

Right now, clean energy plays are seeing a bit of a boost. Some are starting to dive back into the sector. The Russia-Ukraine situation is helping the case for renewable fuels.

Better yet, as we may be only at the early stages of a rebound for this space, there’s plenty of time to give this under-the-radar “green wave” play a closer look.

The Latest With CEI Stock

For months, Camber Energy has been in the market’s graveyard. That’s largely due to it being on the wrong side of sentiment shifts in the market. As a result of these changes, it languished at sub-$1 per share prices. That was bad news for investors who bought in at or near its 52-week high of $4.85 per share.

But in recent days, CEI stock has again seen a sudden surge in interest. No longer trading for literal pennies, this penny stock is now back above $1 per share. Again, this is no shock, given the big inflow of capital into oil stocks, on the heels of it surging well past $100 per barrel.

Oil penny stocks in particular have seen outsized boosts. Along with Camber, other small-cap independent oil and gas exploration and production (E&P) companies have gone parabolic. Speculators are rushing back into them, due to the perception these names have greater upside than the larger E&P or integrated names.

No matter the reason, I wouldn’t get too focused on rising oil prices and what it means for Camber’s E&P assets. Instead, I would focus more on the factor that piqued interest in it five months ago. That would be the moves it’s making in the clean/renewable energy sector.

‘Green Wave’ Remains Main Catalyst for Camber

Through its majority ownership of Viking Energy Group (OTCMKTS:VKIN), CEI stock gives you exposure to recent developments in the energy market. I won’t get into the details about Viking’s oil and gas properties. But with oil up 65% year-to-date, and natural gas up a little over 25% year-to-date, Viking should see stronger results when it reports numbers for the current quarter later this year.

That said, tailwinds with its legacy business shouldn’t be your main focus. The potential for Camber to make a successful move into the clean/renewable energy space is it’s main long-term catalyst.

Right now, Camber’s “green wave” portfolio consists of two separate businesses, both held through Viking. First is its Canada-based unit Simson-Maxwell Ltd. This industrial engine/power generation products provider is an “old economy” type business. Yet by using carbon capture technology it has licensed from a third party, Simson-Maxwell intends to market this technology to its legacy clients, who must contend with Canada’s high carbon taxes and other regulations put in place to cut carbon emissions.

Second, is its renewable diesel endeavor. Late last year, the company (through Viking) entered a deal to buy a mostly completed renewable diesel plant in Reno, Nevada. Once operational, this plant will be able to produce up to 43 million gallons per year. Demand for this alternative energy source has been going up, as businesses look to reduce their carbon footprints. The above-mentioned rise in fossil fuel prices, if they’re here to stay, could further boost demand.

Bottom Line on CEI Stock

Earning a “B” rating in my Portfolio Grader, recent events have sparked renewed enthusiasm for Camber Energy shares. But while rising oil prices are good news for its legacy business, keep your eye on its long-term plans.

For now, the carbon capture and renewable diesel venture mentioned above are reasons for optimism. Down the road, perhaps, other new endeavors will become catalysts as it puts to work the $100 million in capital it raised at the tail end of 2021.

That’s not to say, of course, that this has become a less risky stock. If the recent oil spike ends up being short-lived, and crude prices fall back below $100 per barrel, we could see Camber again pull back to below $1 per share. There’s also the risk that its early stage clean energy ventures fail to deliver. This would also cause a big move lower.

Nevertheless, weighing the risks against upside potential, CEI stock remains a name to keep on your watchlist of clean energy stocks.

On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.

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