Red Giant Entertainment, Inc. (PINK:REDG) Extinguished in a Single Day

Yesterday was a hot-action day for Red Giant Entertainment, Inc. (PINK:REDG). The new extensive pump effort targeting the stock generated heavy volume and managed to lift the price but it was a short-lived success.

After REDG lifted off vertically in early trading, people seem to have got to selling, possibly trying to scramble out of the stock that was flattened from its March high of $.20 per share. Whoever needed to offload their shares appeared to be content to sell even at around 2 cents, which was still almost 100% up from the previous close.

Judging by disgruntled commenters on discussion boards, there seem to be a number of people who bought the March highs and ended up looking at huge loss as REDG crashed and never really recovered, so those too may have used yesterday’s brief surge as an escape boat. Sadly, all newcomers who decided REDG was a bargain at this price and could run on the new round of pumps were in for a nasty surprise. The surge happened very early in the session and the price dropped quickly, with REDG brought to a flat close by the end of day.

The fact that, despite the numerous pump emails and the well-timed press release from the company, the stock was still pressed into a virtually flat close, probably means that whoever wants to get out of this one will do so at any level, no matter how far that may be from the inflated March prices. Considering yesterday’s movement, it’s no wonder there were no new pumps for REDG today.

Traders who got a bad burn on REDG‘s 90+% crash, originally a $500 pump by Victory Mark Corp., will probably stop and think twice before dishing out their money on stocks targeted by paid promotions.