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From the buyer beware department: Christian entertainment may be a big business, but it’s also ripe for stock promoters and scammers.

Consider a write-up I read the other day on Yahoo Finance, of all places, regarding Left Behind Games (OTC:LFBG), which trades on the bulletin board.

The story, by a few no-name newsletter writers, talked about how hot Christian entertainment is, especially Christian gaming. “It’s a $10 billion gaming market that could take off in the next 30 days and quickly launch a $38 million company called Left Behind Games.”

Never mind that they don’t tell you where the $10 billion comes from; then again, they don’t really tell you much about the background of Left Behind Games, either. Instead, they try to ride the coat-tails of controversy surrounding Take-Two's (NASDAQ:TTWO) Grand Theft Auto to suggest Left Behind’s controversy, about people who will be left behind the second coming of Christ, will create a booming stock.

They throw around the number of “Left Behind” books that have been sold and forecast how big the company could be if the people who bought the book buy the game.

Like most promoters, though, they skip over a few pertinent facts, such as Left Behind’s background: It’s the result of a reverse merger into the former Bonanza Gold, an unsuccessful gold mining stock. Last quarter it had NO sales and a $2.6 million loss. It considers itself a “development stage” company that has been in business since 2002. So far it has net losses of $12.1 million and $2.7 million of negative operating cash flow.

Oh, and it needs stock promotion – lots of it to raise cash. According to the company’s last 10-Q, “Management plans to continue to provide for its capital requirements by issuing additional equity securities…”

And that’s just for starters. For the entire story, and why this is not just a risky investment, but a stupid one, as well, check out what my colleague Chuck Jaffe had to say about it last week. To which I say: Amen.

Source: Left-Behind Games: Buyer Beware