Raadr Inc (OTCMKTS:RDAR) Struggles Despite The Paid Pump

The stock of Raadr Inc (OTCMKTS:RDAR) has been touted by a paid promotion for over two weeks now. As part of the efforts to create as much artificial hype around the ticker as possible a landing page was created while various pump newsletters have been sending alert emails. According to the disclaimer found at the bottom of the landing page the sum of $97 thousand has been set aside for the promotion.

Despite the widespread campaign if you take a look at the chart performance of Raadr you would see that they have not been doing that great. While the stock did spike to a high of nearly 40 cents per share it was only for a brief moment and since then RDAR have dropped back down to their initial share price. In fact yesterday the company was saved from logging in another sizable loss thanks to a last minute surge upwards. As a result RDAR closed flat at $0.27, far from an encouraging outcome.

Playing pumped stocks is always dangerous and this time this is rather obvious.In the latest email alert it was clearly stated that affiliates of the paying party “own shares of Raadr, Inc. (RDAR) of which they plan to liquidate”.

Even if you completely disregard the red flags associated with the promotion RDAR doesn’t become any less risky. In its latest quarterly report the company expected its IOS and Android apps to be launched by the end of September but a shareholder update from October 19 announced that now the apps should be ready by the end of the year. The situation around RDAR becomes even grimmer when you take into account the financial results they reported for the quarter ended June 30:

• $974 cash
• $4,116 total assets
• 2,399,696 current liabilities
• ZERO revenue
• $6,936,145 net loss

The numbers are now close to five months old and RDAR may have been able to improve their balance sheet in the past couple of months. Unfortunately investors will have to wait a bit longer if they want to see if this has indeed been the case – instead of filing the report covering the third quarter of the year yesterday RDAR submitted a notification of late filing which gave them a five-day extension. The report is quite important because it will reveal if any discounted shares have seen the light of day. As we warned you in our previous article RDAR have a convertible note that could be turned into shares at a 45% discount.