Per yahoo finance, UBRG operates as an alternative green energy company, which focuses on the production and marketing of alternative energy products, including natural gas, solar, synthetic fuels, biofuels, wind, wave, tidal, and green technology products. The company was founded in 2007 and is headquartered in Irvine, California.
Universal Bioenergy Inc. (UBRG.PK) is an interesting penny play that was a chart request recently. Usually I just email back the chart requests or put them on the forums, but this is an interesting setup if it can gain more volume.
Per yahoo finance, UBRG operates as an alternative green energy company, which focuses on the production and marketing of alternative energy products, including natural gas, solar, synthetic fuels, biofuels, wind, wave, tidal, and green technology products. The company was founded in 2007 and is headquartered in Irvine, California.
Recently, UBRG was awarded a contract and increased its authorized shares from 200 million to 1 billion. That is definitely disturbing for long-term shareholders as it typically indicates dilution is on the horizon. Many self-proclaimed forum/online guru's will surely claim otherwise and "pump" out misleading information though so be careful not to fall into any of that group-thinking excitement/aggressive buying traps.
If you notice, the President carefully tip-toed around denying dilution by saying, "This is a long-term strategic move that we planned last year to expand the Company and benefit our shareholders. Some shareholders may view this action as a potential for dilution and a devaluation of their shares, however we believe there are many valuable benefits to our shareholders. The Board of Directors has no plans to issue all of these shares to the public. The shares will remain within the corporate treasury until we need to use them. Furthermore, the Board does not intend to use them for a reverse stock split." Does this mean a company that dilutes is a bad/manipulative company? No, of course not, the reason they are in the market is to be able to raise capital by doing so. However, dilution will likely hurt existing shareholders if they never sell any shares into the rallies, especially if things do not materialize as quickly for the young company.
UBRG has stated intentions of making acquisitions in the range of $10-25 million. They can not afford that without dilution and/or offering shares. This should create some great trading opportunities if you are quick and disciplined since they will likely ensure the stock is running up before hitting it hard with dilution. The higher the stock price they dilute at, the more money they effectively make. Make sure you use an appropriate strategy for this stock, as well as all penny stocks. They have days of extremely bullish volume followed by weeks and months of no volume and a downtrend turning to a sideways trend. Use that information to adopt the right strategy for yourself so you are not in a panic situation and you can tolerate many weeks/months of no volume. Obviously, only gamble with what you can lose here. See the chart below for more details on the trade setup. source www.istockanalyst.com...
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