Real Estate Contacts, Inc. (OTC:REAC) Was a One-Off Wonder
There was rarely a day for Real Estate Contacts, Inc. (OTC:REAC) when a day of buying and a tentative increase was not followed by selling. Now, REAC has sunk further as investors moved out, abandoning the acquisitions, and wiping out most of the 400% gain from April 9th. 
The company has no new announcements since it promised the launch of web-based television in a bid to increase real-estate deals. The website for this service states only that video clips from agencies and sellers will come soon. REAC has accumulated some negatives in its preliminary process, although not too much, given the relative easy access into a web-based business model:
- $21,863 cash
- $461,543 liabilities
- $3,379 revenues
- $1.1 million net loss
The next few days will show how REAC will keep the interest of investors. Its yearly report is late and may land any moment, rekindling activity. Also, a drop of more than 40% to 16 cents may be an incentive for buyers to return, at least for a while.
Our database still does not have a promotion for REAC, and some noise may have come from a blog devoted to penny stocks, Todayspickis.com. In the last days, several otherwise obscure tickers shot up significantly, but only one was taken by pumpers. Otherwise, web publishing, advertising and other virtual activities remain attractive for penny stock companies, allowing relatively small initial investment and a potential for breakthrough.
So far, REAC has not posted any content-filled press releases beyond its SEC filings, but the first text containing future business promises coincided with the spike in price and volume. It is reasonable to expect that REAC may decide to boost its stock positions with new press releases.
Currently, one of the most active promotions for a company hoping to make money off Internet technologies is for Warrior Girl, Inc. (PINK:WRGL). The ticker shot up significantly in the first days, almost reaching 2 cents, but quickly slid to $0.003, its pre-promotion levels. Several tickers that bounce out of low prices and negligible volumes go on to thrive with a paid promotion, but others slide as more and more investors sell to realize profits. In the case of REAC or WRGL, it is best to decide upfont what your acceptable losses are, knowing that a stock so underpriced could wipe out its gains in a single day.
