Red Giant Entertainment, Inc. (PINK:REDG) – Don’t Dream, It’s Over

Yesterday, after a final effort to recover in late March, Red Giant Entertainment, Inc. (PINK:REDG) officially entered sub-penny land, closing another 18% down on declining volume, to settle at $0.009 at the bell. The pump campaign that pulled the stock under exhaled its final breath on March 27, leaving many traders burnt and angry.

We covered REDG‘s highly-paid but poorly performing pump job that launched on Februyary 28 and sent stock price to an intra-day peak of $0.20 several days later. Despite the considerable sum of $500 thousand paid to the promoters at Victory Mark Corp. LTD as per the disclaimers of their promoter outfits, the stock ran for a very short while, then tanked hard and never really recovered.

The press releases from REDG that also came to an abrupt halt on the same day the pumping ended, constructed an image that proved impossible to live up to, quoting plans for circulating 52 million paper comic books per year and producing live action movies with real actors using the company’s comic franchises.

The sobering reality of the current situation is that REDG has crashed 95% from the highest point of the pump. That’s an awful lot of investor money down the drain, with no chance to curb loss, as the company never bounced back after the initial drop that sliced its market cap in half in a single day. Still, the red flags that flew in traders’ faces for days on end and increased with every grand press release issued were more than enough warning, especially combined with a pump job for $500 thousand.

Those waiting for the stock to rise from the ashes can take a look at Victory Mark’s two pumps that came before REDG – one was PubCrawl Holdings, Inc. (OTC:PBCW), the other – VuMee, Inc. (OTC:VUME). The price action of REDG over the last month speaks rather well for itself. We would only like to remind our readers that OTC stocks can trade at triple zeroes as well.