Pumping Continues for RJD Green Inc. (OTCBB:RJDG)
The large-scale pump effort targeting RJD Green, Inc. (OTCBB:RJDG) that launched Wednesday is still going, with more emails coming through as the stock managed a green close yesterday. However, price action saw a much smaller swing up and share volumes went down almost four times compared to the first day of pumped hype.
The first day of promotions saw pumpers disclosing compensation reaching $500 thousand, received by Stock Mister, with The Bull Exchange pocketing $200 thousand. Yesterday the pumpers fanned out, with new outfits sending virtually the same promo materials into circulation. Despite the widened front of the pump, things were relatively slow in volume and the price did not manage to repeat its wild run. Volatility was also significant, with a gap between the daily high and low of over 25% of the stock’s closing price.
We covered RJDG yesterday, listing what we perceive as the major issues with the company and the pump. The story behind this pump is the recent merger with a certain Silex Holdings, Inc. Considering the fact that prior to the merger RJDG was a shell that had never generated revenues from operations and had $1 thousand in total assets, it would have been very nice of the company to file a consolidated Super 8-K to reflect the financial changes brought about by the exchange. Sadly, while an 8-K detailing the share exchange agreement has been posted, traders have no way to know how RJDG‘s dismal financial situation changed.
It also bears repeating who was until very recently at the helm of RJDG. It was Mr. Zahoor Ahmad, a name pump players had a chance to get to know back in February, when Primco Management, Inc. (OTCBB:PMCM) turned into one of Q1’s biggest pump disasters. The similarities between PMCM and RJDG go beyond the fact that they are pumped. Mr. Zahoor Ahmad was CEO and controlling shareholder in both companies. Both companies did a forward split before they started trading actively and before the pumping began. The pump performance of PMCM can be seen on the chart to the right.
Even though the pumping goes on for RJDG, the action is slowing down significantly and there’s no way to tell when the heavy selling is going to start. Traders are advised to watch out around pumped stocks, especially considering the past performance of promoters currently on board such as The Bull Exchange, and the similarities between RJDG and previous failed pumps.
