Red Giant Entertainment, Inc. (OTCMKTS:REDG) Firmly Locked in Slide
The race back to the bottom is on for Red Giant Entertainment, Inc. (OTMKTS:REDG) and there are no signs of slowing down so far. Yesterday the ticker dropped another 33%, to a stop at $0.004 per share. Share volume increased further and 207 million shares changed hands as REDG dove down the charts.
As of yesterday’s close the company’s share price is a whopping 70% down from its artificial spike, allegedly created by heavy buying by a certain ‘investor group’ with an active Twitter account and a relatively large following. The company denied any connection to this event and the solicitation of a promotion but this does not change the fact that the raid inflated the price dramatically, with the so-called investor group starting its buying spree at $0.0009. With the selloff starting at $0.0136 per share, traders should be able to do the math on their own and calculate potentially how much said ‘investors’ stand to profit.
There are still wildly delusional posters on trading discussion boards who set their own made-up price targets of REDG reaching as high as $5.00 per share, basing their predictions on non-existent revenues and lots of wishful thinking. The reality of the situation is best reflected in REDG‘s last published official report, covering the quarter ended November 2013:
- $39 in cash
- $705 thousand in current liabilities
- $3 thousand in quarterly revenues
- $365 thousand in quarterly net loss
Traders are best left to decide for themselves whether those numbers warrant a market cap much higher than REDG‘s current $2 million. If they can’t do that, they may be better off contacting a certified investment advisor before making any rash moves. They may also want to know that REDG was the target of one of 2013’s most vicious pump jobs run by promoters Victory Mark who bagged $500,000 for touting the ticker. The aftermath of that pump was REDG dropping from $0.20 to $0.01 per share within a month, flushing the hopes and money of many who bought in on the pump down the drain. Despite the many optimistic announcements the company has made since then, its price spent months on end locked in double-zeroes.
REDG‘s next quarterly report is due next week, unless of course the company files for a delay and gets an extension of another couple of weeks. If this report delivers dreary numbers despite REDG‘s reassurances that sales are progressing ‘well’, this may be the final blow that will wipe all hopes for future recovery.