Orofino Gold Corp (OTCMKTS:ORFG) is Still Buzzing with Activity

Orofino Gold Corp (OTCMKTS:ORFG)’s management team announced their intentions to change the company name and business plan at the beginning of January and it would appear that this was enough to draw investors attention towards the stock. The new direction was certainly a breath of fresh air for the shareholders, but there are some things to suggest that the ticker ran too high for its own good.

How strong was the surge? ORFG started 2014 deep in double zero territory, but with the announcement of the new name it really took off. Less than two weeks later it broke through the $0.01 per share barrier with ease and although it has displayed a few corrections, the performance has been remarkably strong. Yesterday’s session was particularly impressive. Nearly 21 million shares changed hands in just six and a half hours bringing the dollar volume to $1.6 million. ORFG started the day with a gap up and about an hour after the opening bell, it hit its 52-week high of $0.095 per share. It eventually subsided a bit, but it still managed to close the day at $0.082 which commands a market cap of around $21 million.

That may not sound like much, but we reckon that it is quite a lot for a company that doesn’t appear to have a functioning website. It might also be a bit of a stretch for an enterprise that uses a virtual office as the address of their headquarters. The same suite, by the way, is also occupied by Sierra Resource Group Inc (OTCMKTS:SIRG), Silver Stream Mining (OTCMKTS:AGSM), and the infamous Xumanii Internation (OTCMKTS:XUII).

The market cap seems downright ridiculous when you bear in mind that after four years of digging for gold, ORFG presents us with a financial statement that contains the following figures:

• current assets: $5,796
• current liabilities: $1,937,840
• no revenue
• net loss for the six months ended November 30: $312,661

In fact, the only thing keeping the market valuation so high is the hype surrounding the company which is also aided by some of the promotional outfits who are, apparently, touting the ticker for free.

The buzz, it seems, is created by the recent announcement of a letter of intent that ORFG signed according to which they should soon acquire a private enterprise called Nations Oil and Gas LLC. The press release says that the merger is going to have a significant effect on ORFG‘s balance sheet.

That’s about all the information we can gather about the future transaction. The management team don’t deem it too necessary to tell their shareholders how they are going to complete the acquisition. They do quote some reports according to which Nations Oil and Gas’ wells contain millions of barrels of oil, but they don’t say if they have the money to explore them.

What’s more, try as we might, we couldn’t find Nations Oil and Gas’ website which leads us to believe that they simply don’t have one – rather strange for an operating oil and gas company.

You can see that there’s plenty of due diligence to be done and that the risks should be carefully considered before putting any money on the line. And while you’re doing that, you might also want to keep in mind that over the last three years, ORFG has issued more than 120 million shares as a conversion of notes.

3D Eye Solutions, In (OTCMKTS:TDEY) too had a great session yesterday. Its management team announced that they’re now looking at the opportunities presented by the bitcoin marketplace and it seems that this was more than enough to send the ticker on a remarkable run. TDEY gained no less than 263% while shifting around $1.9 million worth of shares.