Hot Penny Stocks: Regency Resources, Digidev, RSRS Stock

Digidev is about to take off. Shares in Regency Resources (OTC: RSRS) has been toying around with the $1 range since rumors leaked about their upcoming possibilities in the alerts and newsletters of the penny stock world. RSRS stock has traded no where near as much as it did on the 18th and 19th when the penny stock caught everyones attention. RSRS closed up in the last trading session but only after touching as low as 83 cents.

When you see a stock gap up 80%, plunge 35%, rebound 35%, that’s big action. Internet TV is a huge untapped sector and is only getting bigger. Regency Resources is a relatively new player in this space. However, they are growing and are already working with some of the big players in the sector such as the licensing chief of Image Entertainment.

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RSRS Stock Best Entry Level:

On Thursday of last week, We issued an alert on the penny stock RSRS when we saw the share price dip. The 85 cent range was the best entry level we informed subscribers that were interested in jumping on what could turn out to be the summer’s hottest penny stock.

RSRS Stock Snap Shot:

Market Cap: 64.68M
Shares Outstanding: 73.50M
52 Week High
(4/9/2012): 1.35
52 Week Low
(4/12/2012): 0.75

5 Day Summary:
Percent Change: -22.95%
Moving Average: 0.96
Average Volume: 1,107,807

It became slightly confusing to many when Regency resources filed their 10-Q on Tuesday for the quarter ended March 31, 2012. (see here) The fling states RSRS was organized for the purpose of acquiring and developing mineral properties not Internet TV distribution. As of the 10-Q report date, mineral claims, with unknown reserves, had been acquired.  Regency Resource had not established the existence of a commercially minable ore deposit and therefore had not yet reached the exploration stage considering them to be in the pre-exploration stage.

Mineral Claims Connected to RSRS Stock:

Regency Resources acquired the Mara Gold Claim which is located in the Republic of Fiji. The claim was acquired from The Mara Group LLC., an unrelated company, for the consideration of $7,000. At the time of the 10-Q filing and under Fijian law, the Mara Gold Claim remains in good standing as long as Regency Resources has an interest in it. There is no annual maintenance fee or minimum exploration work required on the Claim.

Regency Resources acquired the La Trinidad Gold Claim located in the Republic of the Philippines on July 1, 2008. The La Trinidad Gold Claim was acquired from Kalibo Resources Inc., an unrelated company, for the consideration of $5,000. At the time of the 10-Q filing and under Philippine mining laws, the La Trinidad Gold Claim remains in good standing as long as Regency Resources has an interest in it.

Based on impairment analyses, Regency Resources determined the above acquisition costs were impaired which were recorded in 2007 and 2008, respectively. So, no mining interests then.

On December 12, 2011, the directors of Regency Resources approved a dividend on the outstanding RSRS stock on the basis of 29 new shares for one existing share of RSRS penny stock.   As a result, every one outstanding shares of RSRS penny stock was increased by thirty shares of RSRS penny stock. There were 73.5 million common shares issued and outstanding as of March 31, 2012.

Listed under the Subsequent Events are the details that Regency Resources has entered into the LOI with DDAC and the details of the proposed merger. 18 million shares of RSRS stock was issued to DDAC to secure the deal.

Bottom Line: What is confusing penny stock trading on RSRS right now is the note they issued in their 8-K stating that Immediately upon execution of the LOI, Regency may change its name to “Digital Development Group, Inc.” or “Digidev“. RSRS is tough to gauge due to the short trading history of the penny stock.

Make sure RSRS is on the list of penny stocks and look for a entry level better to the 85 cent level we sent in our newsletter as an alert to all subscribers. This could take its time to let the heat from SNPK settle when it finally completes its dump and SEFE gets its pump off the ground. RSRS could turn out to be the best of the penny stock summer pumps.


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