Red Giant Entertainment, Inc. (PINK:REDG) Down Again, Despite Skewed Hype
Yesterday Red Giant Entertainment, Inc. (PINK:REDG) continued its descent from its pumped highs, closing almost 13% down on 11 million shares traded.
With pumper daddy Victory Mark Corp. LTD and its children Select Penny Stocks and Penny Stock heroes flying under the radar yesterday and no new tout emails for REDG coming through, the company did its best to keep the hype going. After announcing its grandiose plans to push 52 million paper comic books on the market in a year, yesterday REDG came up with a press release announcing a printing and logistics deal that is going to ‘save millions’ and secure production and shipping at only a notch above cost. What is more interesting is who the other party in the deal is.
REDG announced that the deal was made with a certain Active Media Printing, a U.S. company that holds printing facilities in China. However, a bit of digging turns up that Active Media is closely associated with REDG CEO, Benny Powell. A kickstarter dot com project update of comic artist Mike Deodato, Jr. from mid-February reads “Our printer Benny Powell of Active Media has informed me that our books were delayed in China because they did not ship out before the Chinese New Year hit.” The domain name registration for Active Media Printing’s website also lists Benny Powell as both registrant and administrative contact.
Traders may have certain doubts just how much of a success this news is, considering REDG very nearly announced a deal with itself. The announced pre-sale of advertising space for the planned comic books is still showing up as just ‘major advertisers’ and no specific names of advertisers contracted.
Investors are given lots of press hype from the company and not too many official filings. Last week REDG was demoted on the OTCBB due to “quoting inactivity under SEC Rule 15c2-11”. The last submitted filing of REDG was a quarterly report for the period ending September 2012 and that showed $2 thousand in cash and $32 thousand in net income – hardly the financial resources needed to start pushing out 4 million ‘giant-size’ graphic novels each month.
In closing, once again, to the right is a chart showing how a previous pump run by the same promoters fared. After spiking tremendously on the promotion, PubCrawl Holdings, Inc. (OTC:PBCW) tanked hard and is currently trading at $.004 per share.
The $500 thousand pump for REDG looks like it has exhausted its potential and with promoters failing to show up yesterday, all signs show they are done pumping, leaving hopeful traders sitting 75% below the $0.20 peak reached a week ago.