Anastas Gegov

Red Giant Entertainment, Inc. (OTCMKTS:REDG) Gets Corrected

by Anastas Gegov November 28, 2014

The stock of Red Giant Entertainment, Inc. (OTCMKTS:REDG, REDG message board) has been struggling in double zero land for quite a while and has failed to attract investor interest in the past months. Lately, however, things changed.

 

The stock was being traded at around $0.0013 per share in the middle of this month until, out of nowhere, it gained some 23.08% in last Friday’s session. Then, as this week opened it made an even bigger jump of 43.75% and investors became interested, which was obvious by the $478 thousand in dollar volume, the highest in more than six months.

 

Still, let’s not forget that the latest quarterly report that REDG filed back in July wasn’t exactly promising. It covered the period ended May 31 and contained these numbers of prime interest.

 

  • cash: $44 thousand
  • current assets: $132 thousand
  • total assets: $194 thousand
  • current liabilities: $2.5 million
  • quarterly revenues: $6,457
  • quarterly net loss: $5 million

 

This meant that the gains that REDG experienced for no apparent reason couldn’t hold out for long. The ticker moved nowhere in Tuesday’s session, remaining at $0.0023 per share. Investor interest was still high and REDG recorded $425 thousand in daily trade value.

 

On Wednesday, however, it gave into the pressure and lack of news and closed the session sitting 17.39% lower, while investor interest suddenly decreased and the 105 million shares that were traded as the ticker was headed for the $0.0019 at the final bell generated only $212 thousand in dollar volume.

 

REDG tried to cushion the blow and came out with a press release after the statement, announcing that they will be hosting a live shareholder video on December 4 after the market closes in which they will discuss recent developments. Unfortunately, this didn’t manage to help REDG’s stock and after the market holiday the ticker gapped down in today’s session and is currently 15.79% lower from Wednesday’s close.

 

Let’s not forget that the financials of REDG aren’t the only red flag of the company stock. The company’s outstanding shares count back in November 2013 was sitting at 457 million, while it managed to climb to a massive 2.17 billion in July 2014.

 

We are anxiously awaiting the annual report of REDG which should be filed very soon as their fiscal year ends in August. Until then, be sure to do your due diligence and weigh out the risks before putting any money on the line.

Comments 2

1. Guest
December 05, 2015, 02:16AM

Quotes and im going to buy more monday!

2. Guest
December 05, 2015, 02:15AM

Quotes i want to make money with REDG

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