Universal Bioenergy Inc. (fka UBRG)

[moneym8ker]

Wow!

That 10Q really paints a dark picture.

First, for those of you accountants unfamiliar with authorized and issued or outstanding:

The company has 3 billion shares authorized...
The authorized amount is a static number UNTIL some vote or executive action increases that amount.

So... Even if the company "repurchases" and subsequently "retires" 300 million shares, the authorized amount of shares doesn't change...

A share buyback or "repurchase" affects the issued/outstanding number.

UBRG's I/O number is impossible. It's impossible in the context that they supposedly repurchased 300 million shares BUT are edging ever closer to the A/S which means only one thing:

Either this company does a massive pump and dump to sell into and raise cash to pay debt OR their convertible notes and warrants will eclipse the A/S amount.

It's actually not uncommon for a company to issue Convertible Notes and have that conversion number exceed the A/S when you're dealing with penny fraud stocks. In fact... It's an enormous red flag and one I wrote about when this stock fell below $0.0033. At that price... With known math in the world we live in, there was NO WAY UBRG could convert its debt into shares without exceeding the A/S amount and then subsequently increasing the A/S.

Either this company pumps and dumps or whatever money you've got left will be diluted until it vanishes.


I for one know that Ali is a fraud. How he and his fraud squad have eluded regulatory spotlights is beyond me...that said, he has eluded criminal charges and so my guess is he will come back and try to milk this dead horse. (Haaaa @ milking a dead horse)

I expect a pump and dump.
When? How high?

I don't know...but it's either pump and dump it or dilute it by raising the A/S and then raising the O/S to cover recently described debts in their latest 10Q.