Real Estate Communications, Inc. (OTC:REAC) Picks Up from The Lows
After a few days sliding down, Real Estate Communications, Inc. (OTC:REAC) hit a sweet spot with the right price, and the ticker shot up 114%, an easy achievement at such low levels. REAC now stands at $0.016, propped by a brief mention in an analysis of penny stocks. So far, REAC has not seen a major paid promotion, and the next few days will show if enough press data will keep investors riveted, or if the ticker will slide down again on failing enthusiasm.
REAC is promising a lot for its real estate software, planing to roll out a web video service. This business model has created somehow large expenses, and the sites are yet to show their popularity and generate revenues. The latest filing from REAC reveals the following financial situation:
- $21,863 cash
- $461,543 liabilities
- $3,379 revenues
- $1.1 million net loss
Currently, REAC is in its most active period of trading, as it started on and off activity on the OTC markets in 2012, gaining to 27 cents on low volume, but crashing to a penny in a short period. In the past month, the stock has yielded gains by swinging between 1 and 7 cents, and in its low position it could be ripe for a paid promotion. But the latest spike of REAC at the beginning of April was not enough, and currently the top promoters are busy with other selections.
Perhaps the biggest outreach for REAC would be the review by Small-Cap Specialists posted on a well-visited business news site. Such a mention is on par with a pumpers’ email, and it may be a one-off event. Still, it’s informative to look at the record of Small-Cap Specialists, because their selections hold interesting surprises once in a while. One of the selections, Discovery Gold, Corp. (OTC:DCGD) spiked in activity and price on March 19th, the day of the mailing, but went on to slide 50%.
The perk for REAC is a promise that the real estate sector may be reviving after it took a downward turn in 2008. But any larger developments would certainly lag the fast daily movements that this ticker is capable of, especially with a relatively low price. So it is best to know you can afford losing the entire investment with REAC, and realize that while spectacular gains happen fast, so do dizzying losses.