The PR from Apr. 25 moved Universal Bioenergy Inc. (PINK:UBRG) up to $0.0589 in two sessions. Today the company published another announcement reporting record revenues for 2010.
The announcement claims NDR Energy Group LLC reported approximately $55.4 million revenue for 2010. UBRG acquired a 49% stake in NDR on April 12, 2010.
This information is preliminary and unaudited, and traders should keep that in mind. Until a formally audited financial report is filed with the SEC, the details and actual numbers will not be clear. This information may still move the price of UBRG further up, as demonstrated by the effect of the previous PR.
There is a lot of excitement about the 10-K still to be filed. In addition to detailed numbers for the financial results of the company, it could help UBRG get listed on the Frankfurt exchange, which would further increase the value of the stock for shareholders.
Apart from the PRs, the information about the dealings of the company available at the moment, can be found in their latest 10-Q. The report is quite impressive, keeping in mind this is an OTC Pink tier company:
The margin seems to be disturbingly small at this time, and the recorded loss may discourage some investors. On the other hand, if the reported revenue is accurate, it is still an achievement.
In the same report there is a paragraph stating the company plans to raise additional funds in debt or equity to fund its growth. The dilution resulting from potential equity funding could hurt current shareholders, but the management "anticipates" the potential benefits would outweigh this downside.
Another plan of the management revealed in the report is to reduce UBRG's debt by converting it to shares of common stock. This conversion could increase the outstanding shares of UBRG "to an amount exceeding 100 million shares."
Nevertheless, if these decisions are vital to the management's growth strategy, and that in turn works, the potential profits may prove to be worth it.
For now UBRG may still be too much of a speculative investment for some traders, but this is a defining trait of this market tier, and waiting for a "secure investment" may not be appropriate for the OTC Pink.