Real Estate Communications, Inc. (OTC:REAC) Slides Further
Real Estate Communications, Inc. (OTC:REAC) had its fifteen minutes of fame, and as we predicted, turned out to be a one-off wonder. The stock climbed too steep in the past week, and corrected again by more than 29% to $0.0128. Recently, the company released its 10-K form, showing an outlook for the next year. This may keep investors interested for a while, as the ticker lacks an active pump, but interest may also mean more active selling and a further drop in price. 
REAC is dedicated to making a website of advertorials for real estate deals, also offering video technology. To achieve this, the company has the following financial reserves: 
- $21,863 cash
- $461,543 liabilities
- $3,379 revenues
- $1.1 million net loss
For the whole of 2012, the net loss was significant, eclipsing the $158,356 loss of 2011. On the plus side, this means REAC is getting more active, but the development of its technology seems expensive, as well as the professional fees to file fully and on time. The new year will see more private stock placements, and REAC expects to supplement its cash reserves with revenues from its new web services, although it will still have to show stronger earnings.
In the past few days, REAC was a ticker ripe for promotion, starting strong from previously low activity. Strangely, paid pumpers did not take it up, while being busy with another web technology company, Ice Web, Inc. (OTC:IWEB). The ongoing promotion for this ticker takes it up or down every few days, creating both fast gains and losses.
But REAC is also supported by a series of mentions in blog posts and specialized comments on penny stock investment. OTCstockpicks.net is one of the generators of attention for REAC, mentioning a statistical probability that the ticker is bullish. But the messages are a few days old, and did not expect the sudden turn of fortunes.
Be aware that REAC will find alternative ways to target the interest of investors, and while this may mean resumed upward movement, it may also mean the chance of corrections, similar to those of the past days. Priced around one cent, the stock is affordable, but you must also decide for yourself if you could afford sharp losses.
