Sierra Resources Group Inc (OTCMKTS:SIRG) Plummets Down The Chart

On Friday Sierra Resources Group Inc (OTCMKTS:SIRG) suffered another horrendous crash. The company saw nearly a third of its value getting obliterated and by the time of the closing bell the stock was sitting at $0.0012. Over 182 million shares got dumped on the market during the session, nearly four times the monthly average volume. Compared to its high of $0.00795 posted at the end of August SIRG is now close to 85% lower. Is such a rapid drop warranted though?

Well, frankly nobody can tell. SIRG have not issued a single official PR while their official website is not active anymore. What about the financials of the company? The picture is absolutely the same – the OTCMarkets profile page of the company carries the OTC Pink No Information stop sign because SIRG have not submitted a single quarterly or annual report for nearly two years. The last one covers the quarter ending September 30, 2013.

And the recent financials couldn’t have been that impressive having in mind that earlier this year SIRG actually decided to look for bankruptcy protection. The court, however, dismissed their case.

All the excitement around the stock in the several last sessions was sparked by the rumor that an Ecuador corporation called Orotecno wants to merge with SIRG. Orotecno allegedly generated more than $80 million in revenues in just six months. In fact, as we told you in our previous article, the deal was supposed to be completed a couple of months ago. The fact the there hasn’t been any official confirmation more than likely means that the merger didn’t happen. Is it going to? Nobody knows.

The wild swings up and down the chart may offer some traders an opportunity for quick gains but the risks are simply enormous. 

In early trading today SIRG are still crashing currently sitting 16% in the red at $0.001.