Originating as just mere comic books at around the time of World War II, comics quickly turned into movies which even quicker became a multi billion dollar industry. In 2009, The Walt Disney Company (NYSE:DIS) acquired Marvel Entertainment, Inc., creators of X-Men, Fantastic Four, The Incredible Hulk, Spiderman, Thor and Iron Man, for $4 billion. Is the next targeted comic book creator, currently a mere penny stock, soon to follow in the foot steps of Stan Lee's legacy?
After reversing into the dormant shell of Castmor Resources Ltd. (OTCQB:CASL) in June, investors had been eagerly awaiting Red Giant Entertainment Inc. (OTCPK:REDG) to start trading. That wait ended on Wednesday.
Few know that Benny R. Powell, CEO and sole director of the new entity, was the head marketing writer for Priceline.com and the global writer for IBM's ad agency. What many do know is that he was the youngest writer to ever make it at Marvel Comics since Stan "The Man" Lee, an icon of comics.
With the already profitable company whose comics and other media are consistently instant sellouts at Barnes and Noble, as well as Borders, REDG had long been at the top of the new penny stocks to watch list, especially with the 6-for-1 forward split effected July 19, 2012 to allow there to be 434,922,0000 shares outstanding.
It's not really a far fetched connection between the Red Giant Entertainment and Marvell Entertainment: the Company's CEO and Sole Director, Benny Powell, and Stan Lee, co-creator of such beloved heroes as Spider-Man, the X-Men, Hulk and Iron Man have done some work together.
In March of 2011 after the devastating earthquakes which ripped apart Japan, the Company heroically reached out to comic book veterans such as Stan Lee and other industry superstars to help raise money for Japan in a book appropriately titled - JAPAN NEEDS HEROES.
Stan Lee wrote the foreword for the book while Peter David (known for X-Factor and Hulk), Larry Hama (known for G.I. Joe and Wolverine) and fan favorite artist Mike Deodato (known for New Avengers, Thor and Spider-Man) were just a few of the dozens of iconic names in the industry who joined the effort from the traditional print comic book community. Nearly every major comic book company, including Marvel and DC, had talent represented in the book, unifying the industry in solidarity to help out.
As a writer at Marvel Comics, Benny's first published work at Marvel was What If #77… "What if Legion had Killed Magneto." However, this is not about the proven talent of the Company's CEO as an artist.
Red Giant Entertainment has a massive number of outstanding shares and, for those who snicker at the idea of a comic book Company being a serious investment, obviously you have missed the billions of dollars generated by the Marvel movies Spiderman, Hulk, X-Men, Fantastic Four, The Avengers, Captain America, etc. More so, the industry worldwide is worth close to a trillion dollars when all media and distribution formats are joined.
Even though Red Giant Entertainment is a relatively new company, the experience of the creative talent and staff are not new names to the industry. The large majority of successful contributors are hand-picked from the upper echelon of the comic book fan favorites. Every week, a new comic book, targeting a different audience demographic, is distributed at 1 million copies throughout the Company's media network. The four demographics the Company targets in a rotating fashion to increase overall scope of reach and breadth of audiences are young adults males, adult females, children and mass audience.
For now, REDG stock is a promotional piece and subject to high volatility and price swings. However, similar to the Jammin Java (OTCPK:JAMN) pump and dump which wreaked havoc on investors' portfolios in 2011, two year s later they are a booming coffee provider and making their "Victory Mark" on an booming industry. JAMN stock eventually did come back a bit and has been a semi decent short term investment since ast summer.
Is REDG heading down the same path?
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.