The future of Radiant Creations Group Inc (OTCBB:RCGP) does not look so radiant and its stock performance on Tuesday conveyed the same message. The company reported nothing new since January except its financials. But still, the stock rallied despite the lack of information or any other update. The hype around the stock is hence driven by speculations and is short-lived.
State of financial affairs
The financial picture of Radiant Creations Group Inc (OTCBB:RCGP) is poor too as the company holds a cash balance of just $4,000. Its current assets are $491,000 while current liabilities amount to $1.7 million. The company’s revenues stood at $69,000 while its net loss reads $1.4 million. The absence of positive progress around the company does point out to the threat that its stock could fall back to triple zero levels in a matter of moments. It should be noted that the stock took a way more time to even touch a penny threshold. Moreover, the structure of Radiant Creations Group Inc (OTCBB:RCGP) is questionable.
As per the profile of the company available on OTC Markets, its outstanding shares as on October 20, 2014 is said to be 36.2 million. However, the company’s average volume of 30 million shares on certain days leads to doubts over the accuracy of its share structure. Also, investors should not forget that the company has recently increased the number of its authorized shares to 900 million, which again does not validate the share composition of the company.
Investors are familiar with the fact that no company could survive long without announcing new projects, developments or any tangible information that meet a stockholder’s objective. Thus, the perception about Radiant Creations Group Inc (OTCBB:RCGP) is a bit cloudy as its stock tanked by over 41% to $0.00410 yesterday, while it recorded an average volume of 8.32 million shares.