Promoters Dredge Up Red Giant Entertainment, Inc. (PINK:REDG)

Red Giant Entertainment, Inc. (PINK:REDG) turned out to be one of the worst percentile pump disasters of the first quarter of 2013. After the stock was pumped to high heaven in early March, on a budget of $500 thousand, and then crashed 96% to Wednesday’s close of $0.009 per share, promoters are now dredging the penny shoreline and pushing REDG back into action.

We covered the original $500 thousand pump for REDG as it unfolded, crashed, then simmered down quietly, slumping to under a cent. After pumpers went silent on March 27, they returned in force late last week. Starting Friday morning, twenty new email pumps for REDG have come through, with a large number of promoters hooking up.

Compensations handed out this time round range from $5000 to $16,000, paid by Flip Ventures LLC and Micro Cap Consultants, to various pumpers. It seems promoters saw the 1 cent mark as the floor for the stock and decided to go for another push, touting last month’s worst percentile failure, hoping investors would either not remember what happened or still hold shares purchased at the ridiculously inflated prices of early March.

The company followed through with another grandiose press release chiming in about two hours ago, announcing that their projected 52 million yearly print run of comics would consist of “giant-size” graphic novels, sporting a stunning volume of 64 pages each – twice the size of most regular comics. This volume comes at a ridiculous content-to-ads ratio of roughly 1:1, or 32 pages of ads, compared to most comic books’ ratio of 3:1, or 8 pages of ads in a 32-page comic book. The advertisers who are obviously willing to pay so much that REDG will be able to distribute its comics for free are still not named and investors have been hoping to see some big names for quite a while now.

Considering the effect the first round of pumping had on the stock, the current minor surge may prove to be more of an escape route for people sitting on a pile of loss than a lucrative entry point for newcomers. After all, fool me once, shame on you…

Volume and price action are both furious in early trading, the stock taking off vertically, then charting a series of jagged spikes. Our only advice would be to do your own research and make sure you don’t end up sitting on that pile of loss when this one settles down.