On Friday, investors' hopes for the company's new business mode and the estimations about the increased consumption of natural gas in the United States rushed Universal Bioenergy Inc (PINK:UBRG) stock.
Last week, when the company announced the dismissal of its independent registered public accounting firm, the share price remained red for the last time.
In the official disclosure, Universal Bioenergy Inc stated that by terminating its relationship with the previous consultants it takes alternative actions to improve the timeliness and reliability of its financial statements.
This was the first positive signal on behalf of the company this month. The company's 10-Q disclosure for the three months ended March 31, 2011 and 2010 followed almost immediately.
In the report, the company's management presented a new business mode of UBRG related to the future company's growth throughout mergers and acquisitions. The plans are Universal Bioenergy Inc to acquire 5 to 10 additional new companies in the next 2 to 3 years.
The potential of the natural gas market in the United States has been the other piece of impressive and encouraging information. Managers of UBRG made a reference to a report released by the Massachusetts Institute of Technology which stated that “Natural gas will provide an increasing share of America’s energy needs over the next several decades, doubling its share of the energy market to 40 percent, from 20 percent.”.
Though, to a large extent the information in the recent 10-Q form of Universal Bioenergy Inc. sounds Majeure, still, some of the financial data there raises questions about the company's ability to implement its “new business mode”.
For the three months ended March 31, 2011, UBRG reported revenues of $22.24 million.
In addition, at the end of March Universal Bioenergy Inc. reported an accumulated deficit of $17.3 million.
At the end of the week, the promising future outlook reflected the wild performance of the company's shares. On a heavy trading volume, the price of UBRG soared 4.51% between the sessions to close at $0.051 per share.