Red Giant Entertainment, Inc. (fka REDG)

[Magik007]

I respect all opinions but I start to question those that come out and find every bit of negative they can find to elaborate on at opportunistic times...I will say one thing before I start to respond to your series of comments to say that I completely agree on your assessment that Red Giant should focus on the many thousands of libraries in the United States.

Using that excellent point you made about Libraries, Benny actually addressed in this video - but you provided no positive feedback on this in your assessment. He mentioned Medusa's Daughter and Wayward Sons Legends as examples in that business sector.

Here are just a few examples of circumstances listed to any progress made:

For instance here is an insinuation that bad cashiers at TRU will hamper this process and that using plastic bags in certain cities won't work due to city ordinances. I mean, I can find and stretch all circumstances for any business to say the same thing to try and squash any headway:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=104226509

GSL not conducive to TRU age ranges:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=104206593

You also predicted an "implosion" by the end of July for these reasons: http://investorshub.advfn.com/boards/read_msg.aspx?message_id=103429118

Using the same analogy & mindset, and straying from my normally positive outlook, I shall provide similar commentary from my view of the video:

-- Benny started the video off as if he was lost. He looked around and was aimlessly asking if anyone could hear him. For a person involved in the entertainment business with ties to studio productions (with Glasshouse Graphics) he could have had a sound technician or a member of his team giving him a thumbs up from another room to say he's being heard and "on air". That was just pathetic.

--- When providing CPM rate examples, he used the term "competitors" where in the 2013 Video, he stated that they don't look to compete but enhance the comic book industry. Another reason I don't trust Benny.

--- Benny used the term "Nepotism" in a shareholder's meeting. This is unacceptable and unprofessional.

--- Now for the big one....his tie was not becoming for his complexion. I had to stop watching!

Now for the Q&A Session:

I had to listen to it twice, live, the sound was garbled in a lot of places.

--- Yep, the live stream was of poor quality in certain portions. Way to start off. I didn't hear anything and could not watch it again because they never notified us in advance that they'd be recording it - and caused a major inconvenience and casted doubt amongst investors.

I'm not as impressed as everyone else.

Obviously not...tell us why?

The beginning of it made me want to gag. I really doubt, Benny and the board cares about shareholders, that much. It's like a CEO that says his employees are like family, but doesn't hesitate to lay people off to preserve profitability.

I'd rather him just say that he doesn't give a crap about us. He was just fake. I mean, he doesn't need us to invest because he's getting ready to retire and cash out all of his shares. He came across like the cut throat business man you described above. I certainly felt that as he exuded arrogance and a condescending "better than you" attitude. I'm sure many will agree with that too.

Before I get to far, Benny went , "umm" a lot. I don't think it was because he was nervous. It seemed to be in places he was talking about things that were uncomfortable. It hit me when he started talking about "Japan Needs Heroes", then the CPM rate. On watching it again, it becomes even more apparent. I'm not sure if it means anything, but it makes me wonder about the validity of the things mentioned at those points.

In any public speaking course, they will teach professionals how to speak. Saying Umm a lot is a sign of ignorance and uncertainty. Since he wasn't nervous - there's no excuse other than he's shifty and is hiding something, obviously. I like the subtle ties from Japan Needs Heroes over to CPM rates. You're right, he's going to screw us over on CPM rates like he did with JPH - even though JPN is being publicized on numerous occasions as a thorn and coming to closure. But I prefer to believe we'll get shafted on CPM like JNH

I really didn't need to hear how busy they are. It didn't add anything. Nor did I care to hear how penny pinching he is. I don't hear it from other CEOs, I don't need to hear it from him. My basic assumption is that they are working.

We constantly hear these demanding investors asking for updates. What are they doing? Where are they? Why are they spending our money and not letting us know what they're doing or where they're going?!? These same investors questions his integrity and wonder if they're just scamming us and spending these funds for other things, other than the business. Damn it, I don't need to hear how busy they are either. I expect them to work hard for us and will not get excused through pitty, nor need the long sordid sob story.

I'm skipping things like the Bandai mobil game, it is unlikely to make much money. Most Mobil games don't make much money.

I agree. Such a deal is really just "hype". I mean these games really don't make money at all: http://www.businessinsider.com/highest-grossing-iphone-and-ipad-games-2014-5?op=1 -- it's for certain though (yes, I'll cover it ahead of time here) that Red Giant won't create an IP that will draw that kind of money. No need to cover that now.

Benny seemed to work on his justification for the TRU deal as being big. I can certainly see his side. But, it seems they are handling more than 75% (maybe more than 80%) of the GSL. If anything makes this deal fall apart, the GSL is done. I don't dispute that much of the GSL needs to be distributed outside of comic book stores. I do like that TRU was handling much of the distribution. Still I would be nervous about TRU being able to cancel the deal with only 10 days notice. I had hoped they would not handle more than a third of the GSL (even that is a lot).

I agree, they should never have signed that deal with a 10 day cancel clause. Just shows desperation. My prediction is that they won't get the remaining ads filled in the next 1.5 months, and TRU will cancel this deal. I've seen this happen before and it's a disaster waiting to happen. I wouldn't worry about how good the distribution deals will go because when you factor in fuel and additional labor transport costs for additional "baggage" of this many books, it becomes a wash.

I don't know why Benny could not be more clear on the advertisers and CPM. He said about half the advertising slots were taken. Why not just say they have X number of advertisers taking up Y number of ad pages? Same with the CPM rate. They are competitive, low end $25 (no one signed at that rate) $35 on the high end. Would it have been hard to just average what they currently have? Not being clear makes me think he is trying to hide something, I'm not sure what.

He is hiding this; I mean if he says he has about 50% of the pages filled. I would assume he would want the other advertisers to know how much everyone else already paid on average. This would give him an edge on competitive pricing since everyone will know. I mean, this is a good business practice. Expose the rates, everyone gets a break in advance, and the shareholders know the truth. Red Giant then makes an average revenue stream - everyone wins.

It was positive to hear that their CPM is not lower than $25. Having half the ad slots filled, tells me getting advertisers is hard.

It was harder than he ever thought indeed. Especially since he has admitted it's a race against time to get the remaining 50% filled with only 1.5 months left and time ticking on the TRU 10-day clause. I mean, as he mentioned, FCBD ads took a whopping ONE WEEK to fill so this will be even harder now for GSL - especially after the bogus deals with Bandai-Namco and TRU - nobody will want the remaining 50% of the spots.

Benny probably got the "Factoring" financing idea from this board, as we have talked about it (not with that name) for sometime. I'm a little confused why he hasn't talked to financing people about it, yet. That tells me that financing the GSL isn't a done deal, and could still cause problems.

I agree, Benny gets all of his ideas from this board. This is how he became the youngest writer at Marvel and became the head marketing writer for Priceline and was the global marketing writer for IBM. Benny has admitted to getting these skillets, ideas, terminologies and concepts from this board and similar boards. He's just skating by as a con artist riding on the backs of others.

I think we all know that convertible notes are a last resort, and they are not a good form of financing. The stock price when you sign the papers doesn't matter. There was no justification for Benny to say otherwise ( one of the reasons I don't trust everything he says, putting a $1 share price, out there, is another).

Bad Benny. He took out notes and nobody does that. He promised no more notes and did. He tries to explain the progress and what he did with the money, but we don't want to hear how hard he works, we expect that. We also expect a small company to generate millions through traditional financing - just like everyone else out there. I think he's also pumping his own stock with the $1.00 projections. Heck, he even said higher than a dollar technically. I would have just said .80 cents to be more accurate and quit while I was ahead. This company won't ever organically break sub-pennies again.

On "Last Blood", I wondered why he didn't just repeat what has been made public. Why didn't he do that? It also seemed to be the case, he did not want to say, they haven't started filming, yet.

He didn't break public news because it's all rumor. There are no actors nor screening in a Canadian Film Festival. He did say "it leaked" which to me is suspicious since this isn't really happening. Or if it is happening - he knew it leaked and kept it from us. I'm sure he's not tied down to any legalities or non-disclosure agreements or anything on this film. He didn't even mention any upcoming announcements. He should just start taking about things of substance and not beat behind the bush or insinuate like many others do...

I also initially thought it was positive when Benny said that they might be profitable, right out the gate, or at least break-even. I guess you have to take into account the costs of Factoring and taxes (probably on the full advertising take).

I initially thought this was positive too but upon further thought - what you listed here is a deal breaker and makes me reconsider how positive this really is. I just can't believe how clever Benny is to insinuate this - and certain he got this idea from this board.

I'm still guessing "Plan B" for financing includes an increase in the authorize share limit and more notes. I'll have to look up when their fiscal year is over. He didn't mention any of that.

I agree. He seemed very willing to issue more notes and increase shares. He didn't even cover the Reverse Split potential. I can't believe you didn't ding him on that? I mean, that's a big one that he just glossed over - which means he will increase authorized shares AND do a R/S whenever he gets a chance too in the near future.

It wasn't as bad as I expected, well Benny was still stiff. It wasn't even close to being as good as I hoped.

I agree. I would also not wear a white long sleeve shirt in the summer. I think a short sleeve alternative would be more appropriate. He would not have been so stiff and uncomfortable in that and would have been more apt to identify with the working class. This was not what I wanted to hear as well and there were almost no positives to draw from this alleged "live" video.