Huge Pump Effort for RJD Green Inc. (OTCBB:RJDG)
Yesterday’s session saw RJD Green, Inc. (OTCBB:RJDG) rocket up to a close of $0.18, or 80% up, propelled by a massive promotional push by a number of pumpers. What does RJDG really have going about it, though?
First and foremost, it has Stock Mister who was paid $500 thousand to tout it. It also has pumper outfit The Bull Exchange advertising it against a compensation of $200 thousand. The pumping action did not go unaided by the company, as RJDG issued a press release near the close of yesterday’s session, after months of silence. Even though the merger touted by the PR took place more than two weeks ago, it was announced in a release just now, conveniently coinciding with the big pumps.
What did RJDG have before the merger took place? Short answer is, not a lot. Here is what the company reported in its latest 10-Q for the quarter ended February 2013:
- $1 thousand in cash
- no revenues from operations since inception
- $2 thousand in net quarterly net loss
Those are not exactly figures traders can get excited about, as RJDG was practically a shell until very recently. The company underwent a merger with a Silex Holdings, Inc., which was also the focus of both the press release and the paid pumps. Sadly, the consolidated financial information of how exactly this merger affected the business has not been made public yet, so investors have no real way to get hard information on the current, post-merger financial status of RJDG and have to rely on PR.
Until very recently, the CEO of RJDG was Mr. Zahoor Ahmad, a name that will be familiar to traders following stock pumps. Mr. Ahmad’s name cropped up around the February pump job fiasco for Primco Management, Inc. (OTCBB:PMCM), who happen to be currently trading at $0.002 per share. With both PMCM and RJDG, Mr. Ahmad was CEO and majority owner just before the pumps. Just as with PMCM, there was also a split done by RJDG before active trading began, that increased the number of shares and the setup was once again right for a proper pump job – the one we are now seeing into effect.
Some traders were excited about the presence of The Bull Exchange among current promoters, hoping a prolonged promotion would run for a while. Sadly, there is little to be excited about, as the previous picks of The Bull Exchange were nothing short of disastrous from the start. Their latest pump job that ran in late March was Resource Ventures, Inc. (OTCMKTS:REVI) – one that we covered extensively and one that, after crashing quickly, is currently sitting 94% below the short-lived spike of the pump.
Traders are advised to be very careful with pumped penny stocks, as the promotions create an artificial inflation in both price and interest towards the stocks. Do your own due diligence and never trade on paid recommendations that land in your email.