Replies to post #6391 on Red Giant Entertainment, Inc. (fka REDG)

[rickn23]

I don't remember them saying the cost was already covered by advertising. I understand their business model is based on it being self-funding, but that doesn't mean it will be.

I'm assuming the $5 million line of credit is to fund the free books until they start making money, or money starts rolling in. I don't think all the advertisers are going to be paying in advance.

Since the quarter ended at the end of May, we probably have to wait at least another quarter until revenue is seen from this.

A good indication will be when the books do come out, we can see who is advertising and what size ads they are buying.

I agree with the wait-and-see attitude. I'm just not adding this venture in the present value for the company.