Small cap media and entertainment stocks Red Giant Entertainment (PINK:
REDG), WebXU Inc (OTC: WBXU) and Victory LG
Inc (OTC: SOUL) aka Soul and Vibe Interactive Inc.
have been getting some attention from promoters lately. After all, the media and
entertainment industries tend to be among the “sexier” industries out there.
However, how should investors rate small cap stocks Red Giant Entertainment,
WebXU Inc and Soul and Vibe Interactive Inc.? Here is a quick look:
Red Giant Entertainment (PINK: REDG) Says it Has a
Deal to Circulate Up to 52 Million Books
Small cap Red Giant Entertainment is an intellectual property development company in
business to produce compelling, transmedia properties that become instantly
recognizable to massive audiences worldwide. On Thursday, Red Giant
Entertainment fell 13.13% to $0.0139 to $6.05 million plus REDG is down 94.6%
since early February according to Google Finance.
What’s the Catch With Red Giant Entertainment? According to
various disclosures, transactions of $2k, $3k and $75k have occurred to mention
Red Giant Entertainment in various investment newsletters. Red Giant
Entertainment is a steady issuer of press releases, including a recent one about
an on-going agreement with Active Media Printing to provide exclusive, near-cost
printing and logistics services for their upcoming 52 million annual circulation
line of books. However and according to Google Finance, Red Giant Entertainment
has reported revenues of $0.11M (most recent reported quarter), $0.10M, zero and
zero for the past four quarters along with net income of $0.03M (most recent
reported quarter) and net losses of $0.02M, zero and $0.01M and no cash on hand.
Given those financials, it would seem rather hard for Red Giant Entertainment to
provide printing and logistics services for a 52 million circulation of books.
WebXU Inc (OTC: WBXU): The Financials Should Be Looked At in
Small cap WebXU Inc is a media company that owns and operates a network of consumer
branded websites and businesses focused on Customer Acquisition, E-Commerce and
Mobile Media. On Thursday, WebXU Inc is fell 25.93% to $0.3 for a market cap of
$7.72 million plus WBXU is down 77.8% over the past year and up 400% since July
2011 according to Google Finance.
What’s the Catch With WebXU Inc? According to various
disclosures, someone expects to receive $5k from a third party non affiliate to
mention WebXU Inc in various investment newsletters. WebXU Inc has not been too
busy issuing press releases this year albeit there was one update to announce
the company was moving forward on plans to scale the business as a number of
suitable acquisitions have been identified. A quick look at WebXU Inc’s
financials reveals revenues of $13k (most recent reported quarter), $1,231k,
$4,726k and $3,831k along with net losses of $4,119k (most recent reported
quarter), $7,435k, $5,508k and $1,738k for the past four quarters. At the end of
September, WebXU Inc had just $12k in cash to cover $4,443k in current
liabilities – which should be a bit of a concern although the company announced
in November an engagement agreement with Merriman Capital, Inc., to raise growth
Victory LG Inc (OTC: SOUL) Hopes to Generate
(Recurring) Revenue from Games
Still showing up on Google Finance as Victory LG Inc, small cap Soul and Vibe
Interactive Inc. is a publisher of games and games-related content for consoles,
mobile devices and personal computers addressing a $56 billion market projected
to grow to $82 billion by 2015. On Thursday, Soul and Vibe Interactive rose
8.36% to $0.350 for a market cap of $35.21 million plus SOUL is down 69.8% since
early December according to Google Finance.
What’s the Catch Soul and Vibe Interactive Inc? According to
various disclosures, a transaction of $50k is expected to be paid to mention
Soul and Vibe Interactive Inc. in various investment newsletters. Near the end
of last week, Soul and Vibe Interactive announced it plans to build
micro-transactions into its games across multiple platforms in order to generate
recurring revenue – citing a report that free-to-play mobile game gamers are
spending $21 per month to purchase virtual goods and upgrades. However,
investors should note that according to the financials posted on Yahoo! Finance,
Soul and Vibe Interactive Inc. has reported no revenues; net losses of $7k (most
recent reported quarter), $6k, $3k and $4k for the past four quarters; and no
cash to cover $60k in current liabilities. Since those might be the financials
of Victory LG Inc (whatever that was) instead of Soul and Vibe Interactive,
investors might want to wait until some new financials come out.