Red Giant Entertainment, Inc. (OTCMKTS:REDG) Squirms Up Again
Every once in a while, a company that has been slammed into the dark recesses of double-zero land after a pump job gone terribly wrong will resurface and make a bit of a splash once in a while, propped by a press release or other event. This is also the case with Red Giant Entertainment, Inc. (OTCMKTS:REDG) who came up as a blip on the radar once more, closing 210% up yesterday, still firmly locked in double zeroes, closing at $0.0028 per share.
The company was the target of one of the worst pump jobs of early 2013. We covered the pumping extensively and warned investors before it all went downhill in early March 2013. Promoters compensated with various amounts of cash, the highest-paid one bagging $500,000 to tout REDG, sent a barrage of emails advertising the stock and the company’s business of printed comic books. The company came out with an announcement it was in no way related with the pumping campaign but curiously waited until the pump had first inflated then dragged the share price six feet under before making this statement.
Sadly, there was little substance behind the promises of greatness and REDG crashed and burnt horribly, evaporating the investment of many traders. The company’s last press release is dated March 06, 2014 and speaks of their ‘giant-size’ line of comic books and the ‘inaugural’ advertisers for it. Interestingly, almost a year ago, REDG posted another PR announcement, speaking about its ‘giant-size’ line of comics once again. Even if time may be a relative notion to the company, at least the new PR predicted humbler print runs of 400,000 copies, instead of the 4-5 million per month from the 2013 release.
The company’s latest financial report covers the quarter ended November 2013 (REDG‘s fiscal year end is in August) and contains some truly dire numbers:
- $39 in cash
- $705 thousand in current liabilities
- $3 thousand in quarterly revenues
- $365 thousand in quarterly net loss
Those numbers, combined with the past promotional history of REDG should be enough of a red flag for careful investors. The company was reportedly highlighted by certain investor groups on Twitter but those alone can hardly account for all the volume generated yesterday. As usual, doing your own due diligence before putting money in any stock is advised. Plays that may look like bottom bounce may still drill a hole in your wallet, provided they have a way to go to $0.0001.
REDG is currently up another 214% in early trading.
