Raadr Inc (OTCMKTS:RDAR) Bounces On New Pump Emails
Less than a month ago Raadr Inc (OTCMKTS:RDAR) were trading at more than 30 cents per share. A respectable price but then a paid pump was launched for the company with devastating effects. Instead of luring investors in and pushing the ticker even higher up the chart the promotion crushed RDAR – in a matter of days the stock obliterated more than 75% of its value.
Yesterday, however, RDAR finally bounced back up and actually closed the session just below 10 cents for a gain of nearly 40%. An impressive performance but there is one small problem – it was caused by a new wave of alert emails.
The rather active lately pump outfit The Wolf of Penny Stocks announced RDAR as its latest pick. Of course the so-called Wolf didn’t do it for free – according to the disclaimer at the bottom of the emails the newsletter has received a $55 thousand compensation. The landing page that was created at the start of the RDAR promotion is also still active. After the positive outcome of yesterday’s trading the Wolf of Penny Stocks decided to issue a new email early in the morning today further hyping up RDAR but will it have the same effect?
Playing pumped stocks is incredibly dangerous and RDAR is not an exception. At the end of September the company had:
• ZERO cash
• $59 total current assets
• $1998 total assets
• $2.5 million total current liabilities
• ZERO revenues
• $240 thousand net loss
After the end of the third quarter RDAR received $22 thousand by selling three convertible notes that can be converted into shares at a 50% discount. Keep in mind that the company already had 2 outstanding notes convertible at a 45% and 50% discount, respectively.
On November 25 Raadr published a PR announcing a new financing deal but rather strangely they failed to mention any concrete details. Not only weren’t the terms of deal disclosed but the company didn’t even state the exact amount of the funds it is going to receive. Investors were left with the statement that this seed capital is in the six figures range. So far the company has not filed an 8-K form covering the agreement.
The risks surrounding RDAR demand the use of caution. If you are determined to play the stock do extensive due diligence before putting any money on the line.