Orofino Gold Corp (OTCMKTS:ORFG) Falling On High Volume
Yesterday the stock price of Orofino Gold Corp (OTCMKTS:ORFG) plummeted 31% on heavy volume of over 2.8 million shares that switched hands.
ORFG opened lower than the $0.0098 they had the previous day at $0.0090, reached a high of $0.01 in the first minutes of trading and it seems that this was all the insiders were waiting for to start dumping stock. It went just like a classic one day pump as the majority of the trades took place in the first hour of trading.
In fact the company prepared investors for the pump by issuing 2 press releases, one of which was on May 29 and the second on June 4, which was enough to start the hype that was going to climax when the paid promoters sent the promotional emails.
Just so we have a clearer view of the company let’s take a quick peak at the numbers of prime interest from their latest quarterly report, which covers the period ended February 28, 2013 and was filed under the alternative reporting standard in the OTC Markets.
cash: $5.6 thousand
current liabilities: $2.25 million
revenue: $0
net loss: $52 thousand
It doesn’t really look like ORFG are set for mining gold and silver, which is what their press releases try to make you believe. The latest press release which was most probably put out there to prepare people for the promotional emails is full of geological terms which will confuse most people.
What we find strange in it is the fact that they are speaking of companies way above their level that are mining in the same region that ORFG are exploring. A funny thing is that they even made a mistake when speaking of “AUX Minerals controlled by Billionaire Ike Batista” who’s actual name is Eike Batista, but we decided it’s not such a big deal not to know the actual name of the owner of one of the leading companies in the industry you are trying to make a business in.
Having read this we advise you to do your own due diligence and then decide if you are going to put your money in ORFG. On the good side some of the experienced investors that knew the company was about to be pumped probably made some profits.
