Red Giant Entertainment, Inc. (OTCMKTS:REDG) Gets Corrected

[[tagnumber 0]][[tagnumber 1]]The stock of Red Giant Entertainment, Inc. (OTCMKTS:REDG) has been struggling in double zero land for quite a while and has failed to attract investor interest in the past months. Lately, however, things changed.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]The stock was being traded at around $0.0013 per share in the middle of this month until, out of nowhere, it gained some 23.08% in last Friday’s session. Then, as this week opened it made an even bigger jump of 43.75% and investors became interested, which was obvious by the $478 thousand in dollar volume, the highest in more than six months.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]Still, let’s not forget that the latest quarterly report that [[tagnumber 10]]REDG[[tagnumber 11]] filed back in July wasn’t exactly promising. It covered the period ended May 31 and contained these numbers of prime interest.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 15]] [[tagnumber 16]]cash: $44 thousand[[tagnumber 17]] [[tagnumber 16]]current assets: $132 thousand[[tagnumber 17]] [[tagnumber 16]]total assets: $194 thousand[[tagnumber 17]] [[tagnumber 16]]current liabilities: $2.5 million[[tagnumber 17]] [[tagnumber 16]]quarterly revenues: $6,457[[tagnumber 17]] [[tagnumber 16]]quarterly net loss: $5 million[[tagnumber 17]] [[tagnumber 28]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]This meant that the gains that [[tagnumber 10]]REDG[[tagnumber 11]] experienced for no apparent reason couldn’t hold out for long. The ticker moved nowhere in Tuesday’s session, remaining at $0.0023 per share. Investor interest was still high and [[tagnumber 10]]REDG[[tagnumber 11]] recorded $425 thousand in daily trade value.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]On Wednesday, however, it gave into the pressure and lack of news and closed the session sitting 17.39% lower, while investor interest suddenly decreased and the 105 million shares that were traded as the ticker was headed for the $0.0019 at the final bell generated only $212 thousand in dollar volume.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]][[tagnumber 10]]REDG[[tagnumber 11]] tried to cushion the blow and came out with a press release after the statement, announcing that they will be hosting a live shareholder video on December 4 after the market closes in which they will discuss recent developments. Unfortunately, this didn’t manage to help [[tagnumber 10]]REDG’s[[tagnumber 11]] stock and after the market holiday the ticker gapped down in today’s session and is currently 15.79% lower from Wednesday’s close.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]Let’s not forget that the financials of [[tagnumber 10]]REDG[[tagnumber 11]] aren’t the only red flag of the company stock. The company’s outstanding shares count back in November 2013 was sitting at 457 million, while it managed to climb to a massive 2.17 billion in July 2014.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]We are anxiously awaiting the annual report of [[tagnumber 10]]REDG[[tagnumber 11]] which should be filed very soon as their fiscal year ends in August. Until then, be sure to do your due diligence and weigh out the risks before putting any money on the line.[[tagnumber 2]]