Bill, et al,
There should be little doubt re: scope and purpose of the share expansion, outlined here from December, 2012 filing:
"Management believes that the shareholders would likely receive greater potential financial rewards by means of increased revenues, earnings, a significant increase in the price of the stock, greater market value of the Company, increased assets and more liquidity. The Company is aggressively preparing for rapid growth and expansion through some planned major mergers and acquisitions. Additionally, based on the type and size of transactions that the Company is working on, it needs to have the shares available to it and the flexibility to meet those need and goals. The purpose of increasing the number of shares of common stock is to use them for business and financial purposes, including raising capital, for mergers and acquisitions, acquiring products or services in exchange for stock, attracting and retaining employees, increasing our shareholder base, and being able to respond rapidly to opportunities that arise in the marketplace. The raising of additional capital through the sale of equity may result in a dilution of the current shareholders interests. However, management anticipates that the shareholders would likely receive greater potential financial rewards by means of a significant increase in the price of the stock, greater market value of the Company, and more liquidity. "
This share expansion was terribly dilutive BUT BUT BUT we see it all the time. In a capital and equity based world it is exactly WHY shares are created and shareholders are sought after. From the very beginning of time, (businesses who sought expansion beyond their capital resources) businesses would seek out stakeholders (shareholders) to fund such endeavors and benefit from gains or offset the financial risk.
I've no heartburn with most any company issuing shares.
The key here with UBRG is that their blatant misrepresentations of all other promises to shareholders casts severe doubt on virtually anything they say. Cry wolf one too many times and pretty soon, should a real wolf appear, no one will care. This company has made so many hollow promises that its nearly impossible to distinguish fact from fiction which is the sole reason I believe the stock should be avoided.
Despite grandiose PR's, the stock sits at record lows and the long term trend in the share price tells me that with the exception of some retail folks, Wall Street broadly ignores the claims, and the stock.
What shareholders need from the company is simple. They need to see actual, bonafide, audited results. The company has, it seems since inception, simply used shares to bankroll Ali, Guest, and Martinez with absolutely ZERO benefit to shareholders who've invested v. traded the stock.
In my experience, the constant dilution and never-ending "all words, no walk" PR stream spells scam.
Scam stocks are well documented and defined and UBRG fits comfortably into the definition. Constant stock issuances, zero results. Constant distant promises, zero results. 8 NT filings (huge red flag... Tough to find the right "pay to play " auditor). Murky PR's and even murkier management behavior (accepting calls from individual investors, disclosing tantalizing material info to them but failing to back it up with SEC filings), and withholding material information. It all spells scam.
Don't get me wrong... I'm not against buying the stock of a company with questionable history if there's upside. Who am I to turn down a profitable trade. But the price has to be right and UBRG Captains (Ali, Guest, and Martinez) have made it virtually impossible to determine which price would be right.
These guys at UBRG have hurt so many people... They've ruined some investors. AND THEY DON'T CARE. Not one little bit. I read as ProUBRG makes desperate pleas to mgmt and I feel bad because I know what he doesn't: They're not listening. They're too busy scheming up the next scam to ensure their way of life continues uninterrupted.
