Red Giant Entertainment, Inc. (OTCMKTS:REDG) Starts Trundling Down
A recent flurry of share volume got investors excited about the goings on at Red Giant Entertainment, Inc. (OTCMKTS:REDG) even though the ticker lay forgotten in double-zero land and traded thinly for a long while prior to its most recent jump.
There is still no clear indication of what got REDG moving a few sessions ago. The ticker suddenly launched into mammoth volume trading and clambered up the charts after getting a brief taste of triple-zero levels for the first time. The rumors that a certain investor group popular among Twitter users may have loaded up on REDG shares may prove to have substance, as today’s press release by the company shows.
About an hour ago REDG came up with a press announcement, timed with uncanny precision. Among the news concerning the company’s #0 issue of their giant-size comic books that are allegedly en route to their distrubutor, CEO Benny Powell made sure to underline that while the company ‘appreciates’ the interest ‘various investment groups’ have recently taken in the ticker, REDG had in no way solicited or paid for a promotion to increase trading volumes.
It would certainly make more sense if the sudden spike in price and volume was indeed triggered by one such group of investors and not by a throng of retail traders flocking to REDG as the company has not come up with any explosive news releases prior to the spike and its latest report can hardly inspire great confidence:
- $39 in cash
- $705 thousand in current liabilities
- $3 thousand in quarterly revenues
- $365 thousand in quarterly net loss
It bears repeating that REDG was the target of a vicious and expensive pump campaign in early 2013 that dragged many hopeful investors in the quicksand of loss as the ticker crashed from $0.20 to $0.01 in about a month. The company’s latest press release also makes sure to recommend that all investors consult a licensed financial advisor if possible. This is good advice that we also subscribe to, especially considering the financial situation of REDG that was last reported and its past history of pumps.
REDG is currently 22% up in early trading.
