However, traders and promoters might not be too proud of themselves. SRGZ traded yesterday the highest number of shares in its entire trading history, but the 7.69% increase in the share price looks rather minor. According to the publicly available promotional disclosure, the promotional newsletters were not paid for, but the promoter states to be receiving fees or shares as compensation from the profiled companies.
After market close on Wednesday, the company also announced that a presentation will be uploaded on its website, to provide an overview on SRGZ three current projects. Yesterday, over 7.29 million shares changed their holders and the stock closed at $0.70, five cents below the 52-week high. The prevailing effect is more probably to be attributed to the trading alerts though.
SRGZ has around $93,000 in assets and has so far only made some deposits for certain mineral rights. The current market cap is 1,666 times the current book value of the company. The company has just commenced its drilling program on the on the Excalibur Property. But still, there are no proven reserves in the mineral claims to be pointed out, and thus no revenues or profits are to be expected in the foreseeable future.
The shares remain thus only for experienced and aggressive traders, ready to lose large parts of their invested money, in addition dilution will also be an issue. Management’s plan to find funds for the future operations is explicitly to issue more shares of common stock.
