Sierra Resource Group Inc (OTCMKTS:SIRG) Resurfaces Again
When a company’s stock is traded publicly, the communication between the management team and the shareholders is really important. Most enterprises understand that, but some don’t and as a result, the OTC is full of tickers that can’t attract any investors at all. Sierra Resource Group Inc (OTCMKTS:SIRG) seems to be an exception to the rule.
On the one hand, the company hasn’t filed any financial reports for almost two years. When we last heard from it, it said that the 2013 10-K will be out within the extension period which, as you can see, didn’t happen. Instead of coming out and explaining what the problem is, SIRG‘s management team simply decided to go quiet and leave investors in the dark.
Despite this, people are still willing to throw money at the stock. There was a massive spike back in June when SIRG almost hit $0.002 and another jump pushed it all the way to $0.003 last month. Although it later stumbled back into triple zero land, it surged upwards again yesterday and it reached a close of $0.0013.
The volumes are unstable which is to be expected from a sub-penny stock that hasn’t issued any financial statement in a while, but the number of people who seem ecstatic about the company’s future is absolutely massive. But what are they so enthusiastic about?
Well, as you probably know, penny stock investors tend to get all fired up for the smallest of reasons, so message boards posts such as this one are bound to be playing a role in the peaks experienced by the ticker. More serious attention is drawn by the bankruptcy proceedings the company went through a few months ago, though.
It was dismissed and a plan of reorganization was approved which stated that SIRG should merge with a South American company called Orotecno. Apparently, many people reckon that this is just the ticket SIRG needs in order to send the stock flying high. But is it?
We simply don’t know. The documents say that the merger should have been completed before the end of June, but since SIRG can’t be bothered to put out an official press release, nobody can say for sure whether it has been closed or not. The lack of news does appear to open the floodgates for the people who will tell you that everything is going according to plan without actually having a way of proving their claims.
Links to web pages that are in Spanish are flying around which doesn’t really help investors in any way while the aforementioned people are trying to convince you that the hosting provider for Orotecno’s website is about to decide the faith of SIRG and the thousands of dollars that are being invested in it everyday.
Of course, you are the one who should decide who you want to trust. We probably don’t need to tell you, however, that the complete lack of official information turns the stock into a very risky proposition.
A few minutes after today’s opening bell, SIRG is sitting at $0.0012 (7% in the red).