Sierra Resource Group Inc (OTCMKTS:SIRG) Wipes More Of Its Gains

If you take a look at the chart of Sierra Resources Group Inc (OTCMKTS:SIRG) you will see that on August 28 it opened at $0.0009 and closed at $0.0031. This means that in just a single session the company gained 210%. On the next day the ticker opened with a massive gap up at $0.00795 but such prices were far too unstable and it closed at $0.0033. Investors were also quite eager to jump right into the stock and the daily volumes surpassed the monthly average by quite a few times. What could explain the sudden change in sentiment?

Well, let’s ask another question – Why are investors even thinking about putting their money in the stock? SIRG has absolutely nothing to offer. There have been none official PRs coming from the company ,and we do mean none, for quite a while. And if you open SIRG‘s OTCMarkets profile you will be greeted by the OTC Pink No Information symbol in the right corner of the page. Opening the Filings and Disclosure tab will reveal the reason for the Stop sign – the last financial report filed by SIRG is close to two years old. On April 1, 2014, the company submitted a notification of late filing that gave them a 15-day extension to complete their annual report. Apparently they just couldn’t do it and decided to stop submitting reports altogether.

The only reason for the recent spike in activity are the rumours spread around investor message boards that an Ecuador mining company called Orotecno is going to do a merger with SIRG. Information about Orotecno is not exactly plentiful but apparently they managed to generate $80 million in sales in just six months.

Without any official confirmation, however, the merger remains nothing more than speculation. Coupled with the rest of the red flags around SIRG it is no wonder that the the positive momentum was rather short-lived – on Tuesday the stock wiped 30% of its value. Yesterday the losses weren’t as severe with the ticker closing 4.3% in the red at $$0.0022.

Even if SIRG manage to stabilize for now trading their stock will remain an extremely dangerous bet. Ultimately, it is up to you to decide if putting your money on the line based solely on speculations and rumours seems like a wise decision.

In early trading today the stock is once again crashing currently sitting 13.6% in the red at $0.0019.