New Round of Smaller Pumps for Red Giant Entertainment, Inc. (PINK:REDG)
After Red Giant Entertainment, Inc. (PINK:REDG) was devastated by a $500 thousand pump job run by offshore promoters Victory Mark Corp., pumpers abandoned the failed effort and let REDG slip down to under 2 cents per share in the absence of emails. Yesterday pumping resumed after two long weeks with no new touts and REDG closed nearly 22% up.
This time around the promotion is running on a much lower compensation of $75 thousand disclosed by pumpers Chatter Box Stocks and Awesome Stocks. The new pumps once again accuse shorters for bringing the price down over 90% and state that there could be millions of shares shorted between 15 and 20 cents that need to be covered just now. Even if we assume someone would let short sellers hold OTC stock for over two weeks, covering now would mean shorters still profiting, even if REDG keeps climbing, so this argument is largely irrelevant.
The new pumps still tout REDG‘s announced printing deal with Active Media Publishing that would save REDG millions in terms of logistics and printing costs. In theory, the deal could ensure free printing as Active Media was founded and is still being run by Benny Powell, REDG CEO, who could negotiate with himself whatever terms he desires.
The company came up with another press release timed along with the new pumps, after keeping quiet on the day the previous round of pumps ended. This time the news was related to the addition of a new ‘property’ to REDG‘s lineup of comics, named ‘Medusa’s Daughter’.
Awesome Stocks, the new arrival to the REDG pump bandwagon, previously touted Colorado Gold Mines, Inc. (OTC:CGLD), arriving fashionably late to pump a stock that was already dropping. CGLD never took off after Awesome Stocks’ alert and, after an intra-day surge over the next session, went to drop over 80% to its last close of $0.03 per share.
Even though REDG closed green yesterday, the price was hugely volatile, swinging between $.017 and $.031 and offering little chance for profit for new entrants who got in on the new pumps. Considering the short-lived success of the previous pump that operated on a much higher budget, the new round of promos can potentially have a devastating effect on REDG. As with all promoted stocks, investors are advised to be extra careful.