Universal Bioenergy, Inc. (OTC:UBRG) Revs Up on Record Purchases

Sometimes, more is more, shows the stock of Universal Bioenergy, Inc. (OTC:UBRG). The ticker, actively traded and offering dazzling climbs and sharp drops, attracted attention again with record buying volume. Nearly 50 million shares ended up in the hands of investors, outpacing the volumes of the promotional campaign in November last year.

The latest spike follows a recent press release, stating that UBRG is in advanced negotiations to export coal to China, riding on the wings of a potentially lucrative trend after the Asian country recently turned into a net importer of coal. The talks, of course, so far mean little, and the company shows little readiness to mount such large-scale operations:

• $6,158 cash

• $ 8.3 million total current liabilities

• $7.3 million total current assets

• $8.6 million revenues

• $1.9 million net loss

The promises of UBRG are large- the company expects between $300 million and $800 million revenues in the next three years, the intended duration of the eventual contract. Such a message gives great hope for the company’s future, should the price of the coal turn out right.

On Friday, the ticker jumped more than 62% to $0.0052, a downtrodden price which in itself is attractive for its potential to climb fast. The heights of the stock are at 9 cents. The OTC markets list the ticker as regular OTC, while previously the ticker has traded as a pink sheet. Currently, UBRG has a lowish market cap of $3.1 million, with above 606 million shares outstanding and a further billion shares authorized for future issues.

Formerly, UBRG was known as Palomine Mining, Inc. (POMM), a company that acquired some biodiesel assets, but as the SEC filings reveal, there is little effect.

In November, UBRG was the target of paid promoter The Stock Brainiac, which received $130,000 to spread the message. UBRG is considered an extremely underpriced company, given that the energy sector tends to be lucrative and it is rare for penny stock businesses to show such robust revenues. Still, this ticker holds great potential for volatility, for its extremely low price.

Energy companies are in these days, attracting attention with great potential gains and a more secure business model. Norstra Energy, Inc. (OTC:NORX) became a wonder out of nowhere, climbing sharply until the pumpers took it up, then correcting, but still keeping some of the gains. The next few days will show if UBRG is interesting enough, so that pumpers will repeat the work from last November. In any case, it is best to estimate your acceptable losses before investing in a stock that has shown great potential for erratic movements.