Sierra Resource Group Inc. (OTCMKTS:SIRG) Surges On Wild Rumours

Sierra Resource Group Inc. (OTCMKTS:SIRG) exploded 210.00% up the charts on Friday, under mysterious circumstances. Moreover, it managed to maintain its gains in the first session of this week – so what is happening there?

A seasoned OTC markets investor that looks just at SIRG‘s charts would probably guess that the company has been targeted by an extremely successful paid pump campaigns. However, the truth of the matter seems to be much more bizarre.

There is no paid pump targeting SIRG. Instead, all the ticker’s sudden jump seems to have been caused by a wave of hype that burst out on the company’s message boards. Unconfirmed rumors that SIRG is to make a reverse merger with an entity known as Orotechno from Guayaquil, Ecuador ran wild and drew entirely too much attention and enthusiasm. Twitter touters soon added fuel to the fire, and then the whole ordeal got out of hand. But do investors really have anything real to be hyped up about?

Let’s look at some facts. First and foremost – SIRG hasn’t filed a single financial report in OVER 22 MONTHS. Last time it did so, it had next to no current assets, it was making no revenues and it was racking net loss at a staggering pace. This is probably why it was later declared in bankruptcy. How it managed to get out of that situation is anyone’s guess – and so is its current financial outlook. However, judging by its history to date and the lack of news and filings, it looks extremely unlikely that it has made any steps forward. Which means that it most likely still burdened with liabilities and horrendous losses.

Further, next to nothing is know about Orotechno, except the fact that it has a picture of a gold ingot on their Facebook profile and that its web site doesn’t work. Does the company really mine or deal in gold? What are its business credentials and financial standing? And, does it really intend to merge with SIRG?

That last question is perhaps the most important of all, but just like the others it remains unanswered.

Long story short – there is no definite proof that SIRG is doing well. There is no proof that it will make a reverse merger with Orotechno. And even if it is – there is no proof that said merger will create investor value. The red STOP sign that is stamped on SIRG‘s OTC Markets profile page is well deserved. Let the buyer be ware.