Red Giant Entertainment, Inc. (OTCMKTS:REDG) Clings Onto the Charts
After a Thursday reversal that sliced a third of Red Giant Entertainment, Inc.’s (OTCMKTS:REDG) share price, the ticker once again changed direction abruptly and closed Friday 85% up, stopping at $0.0089 per share. The green session can be attributed to a press release issued by the company shortly before the open.
The company timed its press release quite well, following a sudden and unexplainable price surge that shot REDG from triple-zero territory to $0.007 in just two sessions. The company announced that its #0 issue, add-supported free comic books are now en-route to their U.S. distributor. The company also announced that sales of its other comic book lines are ‘progressing well’. Hopefully, ‘well’ here means ‘a lot better than during the last reported quarter’. Here is what REDG posted in its last public financial report:
- $39 in cash
- $705 thousand in current liabilities
- $3 thousand in quarterly revenues for Sep-Nov 2013
- $365 thousand in quarterly net loss for Sep-Nov 2013
The company’s Facebook page also contains photos of CEO Benny Powell inspecting color proof copies at the printing facility in China. While there’s no specific mention of the printer’s name, one assumption could be that this is actually Active Media Printing, the company with printing facilities in China that REDG announced a deal with back in early 2013. We covered that bit of news back then and it turned out that the deal that should ‘save millions’ was really a deal with a company closely associated with REDG CEO Benny Powell.
Newcomers looking up REDG for the first time should also bear in mind that roughly a year ago the ticker was targeted by a vicious and very expensive pump campaign (with promoters bagging up to $500,000 in compensation) conducted by now-defunct stock pumper outfit Victory Mark, through its children branches Select Penny Stocks and Penny Stock Heroes. REDG came out with a statement that it had absolutely nothing to do with the pump but it was too little, too late, as many investors were already burned by the crash from $0.20 to $0.01 in a single month.
There seem to be many people who believe REDG are really about to take off in light of the recent PR. Those people may also want to keep in mind that the company came out with claims that sounded equally bold in the spring of 2013, including ordering a print run with a retail value of $0.25 million and planning to produce up to 4 million comic books per month. Traders can probably weigh those announcements against the last financials REDG published and draw some conclusions on their own.
