Universal Bionergy Inc.(PINK:UBRG) has formed a downtrend over the past week. On Friday, the stock crashed even harder by 
losing 25% of its price, on a traded volume of over 7 million shares.
What is more peculiar here is that UBRG has released a bunch of positive news on its business lately. However, none of the announcements managed to pump up the stock price.
The last piece of news reported that Universal has set a new all time peak and record in sales revenue for the fiscal year ending December 31, 2011. Though, these revenues are preliminary and unaudited yet.
Maybe that was the main reason for Universal to find another way to jump up. Namely, by promotions.
The records show that UBRG got promoted yesterday for a compensation of $18,000. The alert featured the company’s record fiscal year revenue to break up the current downtrend of the stock. Though, the result is still to be seen.
The primary business focus of Universal Bioenergy, Inc. is the production, marketing and sales of natural gas, oil and alternative energy. Last year, the company used to trade significantly higher, however, since October the stock price has been moving down progressively.[BANNER]
In connection with the price fall, UBRG issued a letter to its stockholders last month. According to it, the team is very dissatisfied and unhappy about the stock price and think the primary reasons for the decline may be due to the late filing of their financial reports. The management claimed they planned to have all of their reports filed in a timely matter with the SEC in 2012 and beyond.
Unfortunately, there are some other factors that should bother UBRG and its shareholders even more. The main issue is the company financials.
As of September 30, 2011 Universal had no cash in its balance, and its liabilities were not covered. In addition, both the stockholders’ deficit and the accumulated deficit of UBRG flew up.
Nevertheless, the management stated that despite the company’s losses, they had positive cash flow and working capital each month to meet their capital requirements. Still, they should reduce the net losses down to zero first, and then move the company toward solid profitability.
