Expensive Pump for RJD Green, Inc. (OTCBB:RJDG) Already Caving In
In less that a week, over 50 tout emails have come through for RJD Green, Inc. (OTCBB:RJDG). However, the pump that launched the stock into active trading and inflated the price seems to be losing steam as RJDG slipped 7% yesterday and intra-day volatility was wild.
The pumping started on June 5, with significant compensations received by promoters. The promotional push extended in the next days but volume was significantly lower in the second and third day. Heavy volume came back Monday but this time it seemed people were more interested in selling, as after a morning spike to $0.25, the price dipped below $0.14, then recovered.
The pumps for RJDG kept coming yesterday, with disclosures of compensation received ranging from $35 thousand to $200 thousand. The pumps contain some questionable statements taken from a press release the company issued at yesterday’s market open, containing promises of revenues reaching $30 million per year. How the company intends to do that is not clear at all, considering the last official information available on RJDG‘s financial state as of February this year:
- $1 thousand in cash, comprising total assets
- $25 thousand in liabilities
- $500 in revenues since inception
The acquisition of a Silex Holdings, Inc. is supposed to be the trigger that should rocket RJDG into the abovementioned stellar yearly revenues. Sadly, the official filings of the company only reflect the fact that Silex received 375 million RJDG shares in the merger, but there is no Super 8-K posted that discloses the financial state of Silex and the consolidated financials of the post-merger entity.
The recent involvement of Mr. Zahoor Ahmad with RJDG is another potential red flag for investors. Mr. Ahmad was CEO of RJDG before the merger and the pump. He occupied the same post in Primco Management, Inc. (OTCBB:PMCM) – one of the ugliest pump jobs of Q1 but he vacated the spot prior to the pump. With both PMCM and RJDG there was a forward split of shares, then pumping started. PMCM is currently trading at half a cent per share.
The active pump for RJDG, the huge volatility and the downward swing in price yesterday, as well as the lack of sufficient transparency regarding the Silex acquisition may give traders some pause before they invest in RJDG. Remember to always do your own due diligence and never trade on someone else’s paid recommendation.
