Red Giant Entertainment, Inc. (OTC:REDG) $500,000 Pump Rolls Out
On Friday Red Giant Entertainment, Inc. (OTC:REDG) climbed another 16% up the charts to a close of $0.15 per share. The movement was helped along by a promotional campaign run by pumpers Penny Stock Heroes and Select Penny Stocks, who disclosed a compensation of $500 thousand to promote REDG.
REDG was formerly known as Castmor Resources, an unsuccessful mining exploration venture that was abandoned. In mid-2012 Castmor merged with Red Giant Entertainment, an entity 100% owned by Benny Powell, who was also Castmor’s CEO, CFO, accountant and president. That is to say, Mr. Powell merged his existing entertainment entity into his then-cashless public company that was generating loss.
How do the financials of REDG look as per their most current quarterly filing following the merger? Here’s a short rundown:
- $2 thousand in cash
- $29 thousand in liabilities
- $105 thousand in sales income
- $32 thousand in net income
To the company’s credit, REDG is now logging quarterly net profit, even if a negligibly small one for a public enterprise valued at over $67 million at their last closing price. The pumps for REDG that arrived in subscriber inboxes in the small hours today tout the addition of Chris Crosby to REDG‘s board of directors. Crosby is the co-founder of comics web portal Keenspot. According to the promotional emails as well as a press release by REDG, Crosby will be bringing the major advertisers he worked with over the years to REDG‘s business, including names like Disney, Activision, Dell Computers and GameStop.
Sadly, when we opened a Keenspot page exhibiting the cover of one of REDG‘s comic properties, we didn’t see any of those big names advertised on the page. There were however advertisements for independently published video games and other web comics. Not exactly Activision and Disney, but close enough for a pump, it seems.
Even though REDG has managed to scrape a profitable quarter, investors should be able to tell the difference between web comic companies with 5+ million Facebook likes such as Marvel Comics and REDG, whose Facebook page sports a total of 120 likes.
Considering the high budget of the pump, it will probably run for quite a while and REDG may run higher, as the hype snowball picks up speed. For those wondering how the promoters currently touting REDG performed in the past, to the right is a chart of VuMee, Inc. (OTC:VUME). Penny Stock Heroes first touted VUME on Jan 9, disclosing another $500,000 in compensation for the advertising campaign. VUME stock is currently nearly 90% down from the spike of the pump campaign.
