Universal Bioenergy, Inc. (OTC:UBRG) Promoted Again, Slides on Fears
Universal Bioenergy, Inc. (OTC:UBRG) is a ticker you want to stay with- but not too long. The past few days held interesting news for investors, but Friday ended on a downward note, as the stock slid 9% to $0.003. Not even a promotional email and a release of annual data could help UBRG recover from the sell-off last Monday.
Last week, the company announced record natural gas sales in March through its subsidiary, NDR Energy Group. Let’s look at the updated financials and see if there is anything in the fundamental business results that explains the double-zero price:
- $2.274 cash
- $4.8 million total current assets
- $6.2 million total current liabilities
- $50.5 million revenues for 2012
- $3.5 million annual net loss
The company has enough business going on to keep it ahead of the game, although it accumulates losses and works with a capital deficit. But no amount of fundamental explaining could predict how a double-zero, very underpriced stock would move. Especially when said stock is taken by The Stock Brainiac, a pumper known for causing hype for all of its selections.
It’s strange that The Stock Brainiac advertises UBRG for its market performance back in the summer of 2012. Then, the pumpers remind, the stock jumped by 155% in a few days, reaching $0.025. What they forgot was that past performance is not an indicator of future events, and that later, the same ticker lost 90% of its value, where it stands now today.
The big slide for UBRG happened to coincide with the day of a record drop in the Dow Jones Industrial Average. The index slid 1.8% to 14,599 points. Oil prices also slid, abandoning the heights that propped the earnings of many energy companies. But the closer reason for the slump may be the investors’ decision to take whatever good fortune they achieved and not expose themselves to the risk anymore.
The Stock Brainiac was engaged in several of the loudest promotions of the past weeks. One of its previous picks, Trulan Resources, Inc. (PINK:TRLR) jumped briefly with the emails at the beginning of April, but went on to lose half its value, with large daily losses. In the case of UBRG, this may happen even faster, when trading happens at a faction of a penny. Despite the good record, keep in mind that if UBRG keeps underpriced, it would be capable both of strong climbs and deep falls.