Will Pumpers Manage to Lift Buyer Group Intl Inc (OTCMKTS:BYRG) Off the Ground?

If there ever is a competition called “The Most Spectacular Stock Promotion Failure For The Last Couple of Months”, there will be quite a lot of contenders. We are in absolutely no doubt that the pump from March on Buyer Group Intl Inc (OTCMKTS:BYRG) will be ranked pretty near the top.

How bad was it? Well the first emails from a host of promoters were received around March 15 when the stock was traded at around $0.07 per share. Throughout the next few days the trading volume was breaking records reaching as much as 8 million shares and with it came the colossal losses. We saw the ticker wiping out nearly 60% in a single day and within just four trading sessions, the price stood at around $0.01. As you can see from the chart, BYRG never managed to recover since then.

Yes, it was that bad and now there is a new wave of promotions led by pumpers hoping to lift the stock off the ground once again. A number of paid newsletters, including NYC Marketing, MicroCapPro, Gold Medal Penny Stocks, Stock Cabin and Titan Stock Alerts sent out their emails after the end of yesterday’s session and early this morning. Is there anything to suggest that their efforts will have a different effect on the ticker this time, though?

Well, there is a new financial statement for the first quarter of 2013 and we were quite eager to open it and see if it’s any different compared to the last time we covered them. Here’s what we found:

• cash: $0
• total assets: $1.1 billion
• total liabilities: $262 million
• quarterly revenue: $0
• operating expenses: $0
• quarterly net loss: $0

Basically, nothing has changed in terms of the financial situation. The current portion of the liabilities still stands at around $13 million which for a company that hasn’t generated any revenues in a while is quite a lot.

The fact that there haven’t spent a dime on any sort of operations during the first three months of 2013 also suggests that proceeds are unlikely to come around soon. Is that the case, though?

BYRG try to persuade us to think otherwise by issuing tonnes of press releases every few days and the fact that some of the pumpers are urging us to follow the news closely today suggests that a new announcement is due soon. But what do the press releases tell us?

BYRG said on May 6 that they have received a confirmation that $120 million of their assets are indeed backed by cash. What does that mean? It means that one of the Top 25 banks (according to the press release, anyway) has sent them a letter which is supposed to confirm that some of their assets are indeed real which, in turn will help them securing financing for the start of the exploration process. Sound good, but why are they reluctant to name the bank in question?

They also said recently that they have closed agreements for the acquisitions of some interests in properties located in Texas and Greenland. Since they have no cash, we’re ready to bet that the deals were closed with the issuance of a large amount of stock.

On the plus side, BYRG‘s CEO decided to cancel the 25 billion common shares that we talked about in our previous articles, but will that really be enough to prevent a failure similar to the one we saw in March? Make sure that you consider that question carefully before jumping in on the hype created by the paid newsletters. Taking a peek at the charts on the right for Colorado Gold Mines f/k/a Cascade Springs Ltd (OTCBB:CGLD) and Hokutou Holdings International Inc (OTCMKTS:HKTU) might also be a good call. They will give you some understanding of how badly pumps initiated by Stock Cabin usually end up.