UBRG: a good trade, but a poor investment.
So those like d-trdr, nback and and Dave68723 have the right approach.
The point is that there is a difference between trading and investing. Trading follows the stock, without too much reliance on the underlying business. True investing is based on the opposite approach, and is concerned with the underlying business.
The gist of my posts is that UBRG is a good stock for traders, but, absent the evidence of a valid underlying business, it is not a good investment.
Some pointers:
1. The stock will always stay in the pennies (10k or no 10k);
2. It will not stay below $0.05 for long (because that does nothing for the Market Makers)
3. It will gyrate up and down on sentiment and speculation (that's what traders do to stock prices)
4. A bad 10k will not kill the stock, unless it kills the sentiment that it could become a valid business
Is this post bashing the stock? Of course not. Management's failure to release the 10k. bashes the stock more than any post on these boards possibly could.
Is natural gas a good play? Yes, it is - if you know anything about the natural gas business. The problem with this stock is that NDR knows the business, but UBRG does not.
Normally management takes over a company believing that it's better know-how can be used to squeeeze better results. That's not the case here. UBRG adds PRs but depends on NDR for revenues.
Would a take-over of UBRG be a good move? Yes and no. Yes, because it might bring in competent management. No, because the real target is NDR.
On balance a take-over would be good at the right price. But that price will not be high. Bear in mind that the UBRG take-over of UBRG was arranged with $250,000 of UBRG paper.
Does this make the stock a scam? No. There's no evidence that this is a traditional pump and dump. Ali and Guest have made themselves too visible for that. But they must find a way of releasing some shares if they are to realise their deferred profit.
So, the underlying thread of my contributions to this board is that traders should keep trading, but investors should not expect this stock to provide a nest egg. Simple.
