Royal Quantum Group, Inc. (OTCMKTS:RITE): Amazing Buying Interest on Stock Mister Mention
Royal Quantum Group, Inc. (OTCMKTS:RITE) is indeed a stubborn ticker- promoted multiple times with disappointing results in volume and price movements. But maybe RITE got some vindication as buying neared 5 million shares. The ticker added more than 23% on Tuesday to $0.063. We’ll see if this turns into a trend or there will be another reversal.
The promotions for RITE started off botched, with enormous selling volumes, probably of previous holders who used the promotion to shed their holdings. RITE slid from respectable 20 cents to its current levels. The January campaign for RITE was similar- instead of buying interest, it created massive sales. Now, the promise from pumpers PennyStockPickAlert is for their biggest play for the year. For the noise they make, these promoters received $15,000, a middling amount that may mean a short campaign. In total, RITE received promotions for $161,000 or seven separate emails.
The hype is boosted by recent announcement of quarterly results, along with a commentary on ongoing business concerns. RITE will strive for more financing, but that is only a wish, and even if the company is successful, this may mean a burden of debt not easily offset by gains, as well as possible stock dilution. So far, RITE has a little more than 53 million shares outstanding, with enough space to issue more. The financial filings show:
- $26,498 cash
- $1.1 million total current assets
- $893,640 total current liabilities
- $75,855 quarterly revenues
- $224,189 quarterly net loss
It seems RITE has chances to keep afloat, should it secure more financing. The company has managed to achieve some oil and gas revenues, not too much, but still more than most penny stock companies which are stuck in preliminary development.
Otherwise, insider transactions are nothing too dramatic, with one officer purchasing about 2 million shares for an unknown value. In total, insiders would be holding 32 million shares, but it is unknown if they disposed of any. Still, this is an amount that could change trading significantly and there is a motivation to boost RITE with promotions.
Among the pumpers was one of the loudest, Stock Mister, receiving the greater sum of $143,000 for its emails. This promoter has been on our list for selections bloated to disproportionate levels, only to crash afterward. It’s strange why the magic did not work too far for RITE, but with a longer campaign we may see a trend forming. But just look at what happened to a previously pumped ticker, Next Generation Energy Corporation (OTCMKTS:NGMC). The ticker was mentioned on May 20th, only to sink on significant selling and trade in the 5-6 cents range in subsequent sessions. So it is best not to give too much hopes to RITE and only enter if you can afford the losses and the choppy trading without a clear trend.