Red Giant Entertainment, Inc. (OTC:REDG) Being Taken Off OTCBB, Pump Crashes Hard

Yesterday Red Giant Entertainment, Inc. (OTC:REDG) left many traders confused. The $500 thousand pump that started on Feb 28 and helped the stock out of its zero-volume status, almost doubling the price, tanked hard yesterday, with REDG dropping over 55% to a flattened close of $0.082.

Some monitoring platforms registered zero volume and price action for the stock yesterday, which left many traders confused. However, OTCMarkets.com, Yahoo Finance and QuoteMedia registered a huge crash on over 28 million shares traded.

The crash came together with an OTCBB system change update, informing that REDG common stock is “ineligible for quotation on OTCBB due to quoting inactivity under SEC Rule 15c2-11”, with an effective date yesterday, March 7.

We have been following the pump job on REDG as it picked up speed and warned our readers of the many red flags around the promotions and the hype that came with them. Hopefully those who paid attention managed to stay out of the frying pan yesterday and avoid a nasty burn.

Promoters Select Penny Stocks and Penny Stock Heroes went silent and no new pump emails came through after our last article on REDG. It would be very hard to spin a “healthy pullback” or “retrace” yarn out of the 55% crash, especially when both your previous pumps have been horrible failures, one being Pubcrawl Holdings, Inc. (OTC:PBCW) and the other – VuMee, Inc. (OTC:VUME).

In the end of the day, the pumpers will bag their $500 thousand for their promotional efforts and hundreds of traders will be left in the cold, sitting on their losses. Hopefully this sort of development can serve as a lesson learned, even if it happened the hard way, and investors will think twice before putting their hard-earned cash into a stock pumped with hundreds of thousands of dollars.