The Pump for Raadr Inc (OTCMKTS:RDAR) is Not Very Effective
Royal Palm Consulting is a company that appears to have no internet presence whatsoever. No matter how much time you spend researching it, you’ll find no traces of a website or anything else that could give you some information on the operations or people involved. What you will find, however, is that Royal Palm Consulting paid $41 thousand to a promotional outfit called Seeking Penny Stocks. In exchange, a pump for Raadr Inc (OTCMKTS:RDAR) began.
A landing page has been created and it’s being advertised by Investors’ Hub who have also pocketed some cash. In addition to this, some relatively small newsletters are also taking part. Basically, the whole thing looks like it meets all the criteria for a successful pump. Yet, it appears to be anything but successful.
The campaign started last week, but it failed to attract any sort of significant attention. Yesterday, we did see a small break in the volume, but RDAR only moved up about 4% which isn’t really the sort of behavior people expected to see in light of the extensive promotional effort. Once you do some research, however, you’ll see that investors’ reluctance to buy RDAR isn’t really that shocking.
Take the financial statement recorded at the end of Q2 for example. It looks like this:
- cash: $974
- total assets: $4,116
- current liabilities: $2,399,696
- NO revenue
- quarterly net loss: $6,936,145
The figures, as grim as they look, are far from the only problem. RDAR‘s business plan revolves around a system that helps you monitor your children’s social network activity. Basically, instead of opening their Facebook and Twitter profiles, you open your own profile at RDAR and see what they’ve been posting.
It’s up to you to decide whether the idea really is that revolutionary. Understandably, the company’s management team reckon that it is and they also think that the number of interested parents will be big enough to justify the development of mobile applications for iOS and Android. In the 10-Q, they said that the apps will be out in September 2015, but it’s plain to see that they have failed to meet this deadline.
Another thing they failed to do was tell us a bit more about RDAR‘s stock issuance habits. They did disclose in the 10-Q that during the first half of the year, the company issued exactly 30 million shares in connection to three consulting contracts, but they failed to explain what those contracts included and how the shares were valued. They also haven’t said whether the note that is convertible at a 45% discount has been turned into stock already.
