Penny Stock Heroes Snatch $0.5 Million to Pump Red Giant Entertainment Inc (OTC:REDG)
If you came across half a million dollars, how would you use them? You could put them on a bank deposit or, alternatively, buy bonds and stocks if you are looking for higher returns and willing to take on more risk. However, there is yet another option – to launch a large-scale paid promotion in favour of a penny stock you might have a stake at.
Obviously, this is exactly the case with Red Giant Entertainment Inc (OTC:REDG) as REDG shares are currently being pumped by Penny Stock Heroes and Select Penny Stocks for a hefty compensation of $500,000. Ironically enough, the party that has provided the money has remained undisclosed. In this situation, we asked ourselves quite a simple question, namely: Who will benefit the most out of the promotion?
It didn’t take a rocket scientist to focus our attention to Benny Powell, the company’s sole officer and director. Why do we think that Powell might have a vested interest in such a campaign?
Let’s go back to June 11, 2012 when Castmor Resources, Ltd. acquired 100% of the issued and outstanding shares of Red Giant Entertainment, Inc. owned by Mr. Powell. The latter received 40 million newly-issued restricted shares in return. Following the acquisition, the company adopted the name of Red Giant Entertainment, Inc. and executed a 6-for-1 forward stock split, thus raising Powell’s stake to 240 million.
According to REDG‘s latest 10-K report covering the fiscal year ended Aug. 31, 2012, Powell owns in excess of 311 million shares of common REDG stock, or 71.50% of the company’s total O/S. The report also revealed that he was not paid any executive compensation and that this situation was likely to change to a monthly salary of $5,000 in the future.
To sum it up, Powell is currently working for free, yet he has hundreds of millions of shares at hand. We looked everywhere to see when exactly all the restrictions on his stock will be lifted to no avail. In this respect, there are two possible scenarios: either the restricted stock is no longer restricted, or it is still the other way round. Either way, the promotion has achieved something that had not been present before – an established trading market for the stock.
Last but not least, the fact that staying away from pump jobs such as this one still goes without saying in the light of the poor market performances of other penny stocks which used to be promoted in the past. Check out Penny Stock Heroes’s historical track record, as well as Select Penny Stocks’ past failures to get a more concise picture.
