Nonstop Action for BUYER GROUP INTL INC (PINK:BYRG)

It would seem that BUYER GROUP INTL INC (PINK:BYRG) won’t be left in peace any time soon. The latest promotional effort started on March 11 and we have been receiving emails about them virtually every day. BYRG themselves are also trying to keep the flame burning by issuing press-releases by the dozens. But are there any real reasons to get excited?

Well, if the emails and the announcements are to be believed, yes there are. The latest headline that came out of BYRG‘s HQ states that they have published their drilling program test results. Indeed they have. The reports can also be found among BYRG‘s filings on the OTC Markets website. We read through them and we see that there are 12 ounces of gold per ton in one of their properties. Whether that’s enough, we’re not sure. The problem for BYRG is that these reports were done a while ago, and they are not comprehensive enough, which means that they will soon start negotiations for a newer, more detailed testing. They say that the sampling and the compiling of an up-to-date report will cost them between $300 thousand and $500 thousand but, they reckon, it’s worth it. So, do they have the money?

In a word, no. The latest financial statement is the annual one for the fiscal 2012 and it’s safe to say that it’s not the most informative piece of documentation that we have ever read through. Still, there are some figures and we have summarized them for you:

• cash: $0
• current assets: $395 thousand
• total assets: $1.15 billion
• total liabilities: $262 billion
• revenue: $39 thousand
• net income: $0

$1.15 billion in assets is quite a lot, indeed and BYRG say that they consist of anything from mining claims to feature film catalogues, but it turns out that all these assets have managed to produce only $39 thousand in revenue and no positive cash flow.

With that in mind, they have a startling amount of liabilities and a whopping $13 billion of them are classified as current which means that they will have to be satisfied during the next twelve months. BYRG‘s CEO, Mr. David Bryant is in for a lot of sleepless nights.

Speaking of Mr. Bryant, we should point out that he owns a whopping 25 billion shares of BYRG common stock. He acquired them back in 2008 and unfortunately, the 10K was not scanned properly, which means that we’re not sure why he got all this stock. According to the terms, these shares should be restricted, but that doesn’t stop them from diluting the shareholders.

And the dilution to come could be even worse. A couple of years ago, they amended their article of incorporation and now they say that the number of authorized shares is unlimited. In addition to this, they have already converted quite a lot of debt into freely tradeable common stock at par value. Imagine the profit that could be made out of these shares.

If the people holding them at the moment decide to sell, BYRG‘s price will fall down like a rock and it will leave a lot of angry investors behind. We’ve seen that happen a lot. A recent example is DMH International Inc (OTC:DMHI) who got pumped by pretty much the same newsletters at the end of February. The chart on the right shows the devastating results of the promotion.

BYRG could follow in their footsteps any moment now, which is why you should be extremely careful when making your investment decisions.