Real Estate Contacts, Inc. (OTC:REAC) Explodes 400%, May See Pump
Although the heat of real estate passed over years ago, and condo flipping gave way to a worldwide crisis of trust, the stock of Real Estate Contacts, Inc. (OTC:REAC) is forging forward like it’s the heyday of this business. It’s curious that our database still has not intercepted a promotion for this ticker, but a growth of 405% to 2 cents may be the result of directed activity. 
REAC also marked record buying volumes, after a very inactive period in the previous months. The ticker was barely traded before March 2012, and since then only sporadically, swinging between 27 cents and a price deep in the triple-zero hell. But let’s look at the financial data for REAC and try to gauge why the company is so market-shy. REAC did not manage to file yearly results in time, but here are the last quarter data: 
- $21,863 cash
- $461,543 liabilities
- $3,379 revenues
- $1.1 million net loss
REAC is clearly not into big real estate deals, instead focusing on an advertising website to connect buyers and sellers. It’s not an unseen business model in the later years, and this site seems to be taking only crumbs from the market, with very modest quarterly revenues, but also big debt from the development stage.
The rise in the REAC stock is also due to a series of press releases, the latest one announcing the launch of a “real estate TV channel”. But this turns out to be nothing more than a website carrying videos- also an old idea in 2013, and quite ubiquitous on the internet. All of the company’s promise hinges on page visits and web advertising revenue, which may turn out good, but is a highly uncertain bet.
The next few days will show how REAC moves after it sprung to life, but the momentum for bigger volumes may keep, and even invite a paid promoter. So far, investors are holding 75 million shares more, and with 232 million shares, there are enough potential sellers in the background, waiting for the right moment. REAC holds the risk of a major correction.
Insider transaction record for REAC shows a sale of 12,500 shares at $0.13 per share, an insignificant amount. Adding to the PR hype is a recommendation from a penny stock blog, Todayspickis.com. REAC has caught the attention with increased activity in the past two weeks, which perhaps led to critical weight of investors and a mass entry on Tuesday. REAC is very new to our record, and we will be following it in the next days and weeks, but be aware of the dangers that a fast mover holds, especially if the ticker sees a paid promotion, which could cause even more disproportionate swings in price.
A former promotion, Ice Web, Inc. (OTC:IWEB), spiked high on its promising web advertising business, but went on to trade erratically once the promoters abandoned it. To avoid the ill effects of such a movement, decide on your own what losses you could afford and mark your preferable time horizon.
