SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB
(Mark one)
[X]      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
         SECURITIES EXCHANGE ACT OF 1934
         For the quarterly period ended March 31, 1998
                                       OR
[ ]      TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
         SECURITIES ACT OF 1934
         For the transition period from                  to
                                        ----------------      ---------------

                  Commission File Number:            1-5673

 .............................RANGER INDUSTRIES, INC............................
        (Exact name of small business issuer as specified in its charter)

         Connecticut                                       06-0768904
(State of other jurisdiction of          (I.R.S. Employer Identification No.)
incorporation or organization)

                                One Regency Drive
 ......................Bloomfield, Connecticut 06002.............................
                    (Address of principal executive offices)

 .................................(860) 726-1208.................................
                (Issuer's telephone number, including area code)

Check whether the issuer:  (1) filed all reports required to be filed by Section
13 or 15(d) of the  Securities  Exchange  Act of 1934  during the  preceding  12
months (or for such shorter period that the registrant was required to file such
reports),  and (2) has been subject to such filing  requirements for the past 90
days.                                   Yes X     No
                                                    -----

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date (May 14, 1998): 4,788,644 shares

Transitional Small Business Disclosure Format (check one):  Yes       No /X/
                                                               -----

712867.7

<PAGE>

                             RANGER INDUSTRIES, INC.
                       (formerly Coleco Industries, Inc.)

                            CONDENSED BALANCE SHEETS

                      March 31, 1998 and December 31, 1997

                                  -------------


                                     ASSETS

<TABLE>
<CAPTION>
                                                                         March 31,           December 31,
                                                                           1998                  1997
                                                                        ----------           ------------
                                                                        (Unaudited)

<S>                                                                     <C>                  <C>
Current assets:
    Cash and equivalents                                                $   763,241           $  784,800
    Prepaid expenses                                                         11,493                   --
    Income tax receivable                                                     3,446                3,446
                                                                        -----------           ----------

         Total assets                                                   $   778,180           $  788,246
                                                                        ===========           ==========
</TABLE>


<TABLE>
<CAPTION>

                      LIABILITIES AND STOCKHOLDERS' EQUITY

<S>                                                                     <C>                  <C>
Current liabilities:
    Accounts payable and other liabilities                              $    25,182           $    19,918
    Accrued interest payable                                                    --                 16,337
    Note payable to Pure Group, Inc.                                            --                196,477
    Other amounts owed to Pure Group, Inc.                                      --                265,303
                                                                        -----------           -----------

         Total liabilities                                                   25,182               498,035
                                                                        -----------           -----------

Stockholders' equity:
    Common stock                                                             47,886                40,000
    Capital in excess of par value                                        1,460,729               985,000
    Retained deficit                                                       (755,617)             (734,789)
         Total liabilities and stockholders' equity                     $   778,180           $   788,246
                                                                        ===========           ===========
</TABLE>


                   The accompanying notes are an integral part
                     of the condensed financial statements.

                                        2

714781.2

<PAGE>



                             RANGER INDUSTRIES, INC.
                       (formerly Coleco Industries, Inc.)

            CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

                 for the quarters ended March 31, 1998 and 1997

                                   (Unaudited)

                                 ---------------


<TABLE>
<CAPTION>

                                                                              1998                 1997
                                                                              ----                 ----

<S>                                                                         <C>                  <C>
         Net sales                                                          $     --             $     --
                                                                            -----------          -----------
         Operating costs and (expenses):
                  Administrative expenses                                        10,262               33,424
                  Legal expenses                                                 11,830               15,600

         Other income (expenses):
                  Interest expense                                               (5,498)               --
                  Interest income                                                 9,262                    7
                                                                            -----------           -----------
                           Loss before income taxes                             (18,328)             (49,017)
                                                                            -----------           -----------

         Provision for income taxes                                               2,500                --
                                                                            -----------           -----------

                           Net comprehensive loss                               (20,828)             (49,017)
                                                                            -----------           -----------

         Basic loss per share                                                      (.01)                (.01)

         Weighted average common shares outstanding                           4,192,780            4,000,000
                                                                            ===========           ==========
</TABLE>

                   The accompanying notes are an integral part
                     of the condensed financial statements.

                                       3

714781.2

<PAGE>



                             RANGER INDUSTRIES, INC.
                       (formerly Coleco Industries, Inc.)

                       CONDENSED STATEMENTS OF CASH FLOWS

                 for the quarters ended March 31, 1998 and 1997

                                   (Unaudited)

                                 ---------------


<TABLE>
<CAPTION>

                                                                              1997            1998
                                                                          -----------     -----------

<S>                                                                       <C>              <C>
Cash flows from operating activities:
         Net comprehensive loss                                           $(20,828)        $(49,017)
         Adjustments to reconcile net comprehensive loss to
             net cash used in operating activities:
             Prepaid expenses                                              (11,493)         (25,206)
             Accounts payable, accrued liabilities and interest
                payable                                                     10,762           34,785
                Total adjustments                                             (731)           9,579

                Net cash used in operating activities                      (21,559)         (39,438)

Cash and cash equivalents at beginning of period                           784,800           43,009

Cash and cash equivalents at end of period                                $763,241          $ 3,571
                                                                          ========          =======

Noncash transactions:
   Common stock issued in exchange for the 
      cancellation of amount owed to PGI                                  $483,616         $     --
                                                                          ========


</TABLE>

                   The accompanying notes are an integral part
                     of the condensed financial statements.

                                       4

714781.2

<PAGE>


                             RANGER INDUSTRIES, INC.
                       (formerly Coleco Industries, Inc.)

                     NOTES TO CONDENSED FINANCIAL STATEMENTS


1.    Organization:

      In July 1988, Ranger Industries, Inc. (the "Registrant" or the "Company",
      and then known as Coleco Industries, Inc.) filed a voluntary petition in
      United States Bankruptcy Court under Chapter 11 of the Federal Bankruptcy
      Code. Effective February 28, 1990, the bankruptcy court approved a plan of
      reorganization (the "Plan"), pursuant to which all then outstanding debt
      and equity securities of the Registrant were canceled, and 4,000,000
      shares of the Registrant's new $0.01 par value common stock (the "Common
      Stock") were distributed to the unsecured creditors. On the Effective Date
      of the Plan, the Registrant retained $950,000 in cash for working capital
      purposes and was expected to engage in the business of acquiring income
      producing properties or businesses.

      The Plan provided for the creation of a Reorganization Trust in order to
      liquidate the Registrant's remaining assets (other than the $950,000 in
      cash retained by the Registrant) and effectuate distributions thereof to
      the Registrant's creditors. The Reorganization Trust completed the
      distribution of its assets in May, 1996 and was terminated by order of the
      bankruptcy court on August 27, 1996.

      The Plan also provided for the creation of a Product Liability Trust in
      order to settle certain personal injury claims (including claims arising
      thereafter) against the Registrant. The Product Liability Trust continues
      to process and liquidate certain product liability claims. Pursuant to the
      terms of the Product Liability Trust Agreement, residual funds, if any,
      will revert to the Registrant, as grantor of the trust, upon the earlier
      of (a) February 28, 2020, or (b) approval by the bankruptcy court of
      earlier termination of the Product Liability Trust.

2.    Change In Control:

      Following the conclusion of a hostile proxy contest (the "Proxy Contest"),
      initiated by Pure Group, Inc. ("PGI") during the second quarter of 1997,
      the Company's former directors resigned from the Board of Directors
      effective July 29, 1997, and new directors were elected. The terms under
      which this change in control took place are outlined in a settlement
      agreement dated July 29, 1997 between PGI, the Company and the Company's
      former directors (the "Settlement Agreement"). Under the terms of the
      Settlement Agreement, and as set forth in a demand promissory note dated
      July 29, 1997, PGI loaned the Company $196,477 to pay its then outstanding
      obligations. The note required the Company to pay interest to PGI at two
      percentage points above the prime rate (8.5% at December 31, 1997).
      Additionally, PGI loaned the Company $251,780 to cover costs


                                       5

714781.2

<PAGE>



2.    Change in Control, Continued:

      incurred in connection with the Proxy Contest, including the costs of
      holding the 1997 annual meeting, and $13,523 for working capital purposes.
      These additional loans of $265,303 were subject to the same terms outlined
      in the demand promissory note. Also, see Note 6.

3.    Management's Representation:

      The accompanying condensed financial statements should be read in
      conjunction with the Notes to Financial Statements and Management's
      Discussion and Analysis of Financial Condition and results of operations
      included in the Company's 1997 Annual Report filed on Form 10-KSB and in
      this Form 10-QSB report.

      In the opinion of management, all adjustments necessary for a fair
      presentation of the result for the interim period have been made.

4.    Income Taxes:

      Effective January 1, 1993, the Company adopted Statement of Financial
      Accounting Standards No. 109, "Accounting for Income Taxes" ("SFAS 109").
      SFAS 109 requires recognition of deferred tax liabilities and assets for
      the expected future tax consequences of events that have been included in
      the financial statements or income tax returns. Under this method,
      deferred tax liabilities and assets are determined based on the difference
      between the financial statement and tax bases of assets and liabilities
      using enacted tax rates in effect for the year in which the differences
      are expected to reverse. In addition, deferred tax assets are subject to a
      valuation allowance to reduce them to net realizable value.

      As discussed in Note 1, the assets and liabilities of the Company, except
      for $950,000 retained for working capital purposes, were transferred to
      the Reorganization and Product Liability Trusts, respectively, effective
      February 28, 1990, in accordance with the Plan. Although the matter is not
      free from doubt, these Trusts have been treated as grantor trusts.
      Accordingly, taxable income or loss associated with the disposition of
      assets and the settlement of liabilities by the Trusts are reflected on
      the federal income tax return of Ranger Industries, Inc., although such
      assets and liabilities are not presented in these financial statements
      (also see Note 5).

      Tax expense or benefit is attributable to Federal and state taxes due.


                                       6

714781.2

<PAGE>


                             RANGER INDUSTRIES, INC.
                       (formerly Coleco Industries, Inc.)

               NOTES TO CONDENSED FINANCIAL STATEMENTS, Continued

                                     ------

4.    Income Taxes, Continued:

      At March 31, 1998 and December 31, 1997, it was estimated that the Company
      had adjusted tax net operating loss carryforwards and future deductions of
      approximately $192 million after giving effect to the Plan and the
      transactions contemplated thereby, which may be used to offset future
      taxable income, subject to several limitations, and which begin to expire
      in the year 2002. These amounts include the tax consequences of the
      activity of the Reorganization and Product Liability Trusts, as well as
      the activity of Ranger Industries, Inc. At March 31, 1998 and December 31,
      1997, the Company had Alternative Minimum Tax (AMT) loss carryforwards of
      approximately $168 million which will begin to expire in the year 2002.
      The Company also had approximately $7.7 million in tax credit
      carryforwards at March 31, 1998 and December 31, 1997. At the current
      regular tax rates, the taxable income equivalent of the credit
      carryforwards is approximately $22.6 million.

      Under current tax laws, the Internal Revenue Code provides for certain
      limitations following an "ownership change". Accordingly, under the
      confirmed Plan of Reorganization, the continued availability of the
      Company's net operating loss carryforwards and other tax attributes may be
      subject to substantial limitations (also see Note 5).

      At March 31, 1998 and December 31, 1997, the only remaining book and tax
      base differentials related to the claim settlement activities of the
      Product Liability Trust. Additionally, any deferred tax asset recorded to
      recognize the tax net operating loss carryforwards would be subject to a
      full valuation allowance under the provisions of SFAS 109, due to the
      uncertainty of the Company's ability to generate taxable income to utilize
      the carryforwards. The Company's tax liabilities are attributable to state
      minimum taxes and federal alternative minimum tax.


                                       7

714781.2

<PAGE>


                             RANGER INDUSTRIES, INC.
                       (formerly Coleco Industries, Inc.)

               NOTES TO CONDENSED FINANCIAL STATEMENTS, Continued

                                     ------


5.    Treasury Regulation:

      On January 6, 1992, the Department of the Treasury promulgated new
      Treasury Regulations. These regulations interpret Section 269 of the
      Internal Revenue Code which permits the Internal Revenue Service to deny
      corporations the ability to use tax benefits, such as net operating losses
      ("NOLs"), where control of the corporation was acquired for the principal
      purpose of avoiding tax. The regulations provide that if a corporation in
      a bankruptcy reorganization that qualifies for an exemption from the
      general rule limiting the use of net operating loss carryforwards does not
      carry on a significant amount of an active trade or business during and
      subsequent to such bankruptcy reorganization, the Internal Revenue Service
      will presume, absent a showing of strong evidence to the contrary, that
      the principal purpose of the reorganization was to evade or avoid Federal
      income tax and that Section 269 should apply. The regulations are only
      effective, by their terms, with respect to acquisitions of control of
      corporations occurring after August 14, 1990 and, accordingly, they do not
      apply to Ranger Industries, Inc.

      Despite the inapplicability of these regulations to Ranger, the issue of
      essentially inactive reorganized companies with NOLs that survive
      bankruptcy intact has now been firmly raised in the eyes of the Internal
      Revenue Service. Accordingly, due to the Company's disposition of its
      historic toy businesses to Hasbro and the Company's switch to a new
      business of acquiring investments, it is possible that the Internal
      Revenue Service may assert that the Company has not carried on a
      significant trade or business during and subsequent to its reorganization.
      If such an assertion is made and ultimately sustained, then the Company
      would be unable to utilize its estimated $192 million of net operating
      loss carryforwards. This could have a materially adverse effect on the
      Company's ability to attract outside investors willing to invest in the
      Company. Notwithstanding these regulations, there can be no assurance that
      the Company will be able to attract sufficient outside investment to allow
      it to continue to operate, once its current working capital is depleted.
      The consolidated financial statements do not include any adjustments that
      might result from the resolution of these uncertainties.

                                       8


714781.2

<PAGE>

                             RANGER INDUSTRIES, INC.
                       (formerly Coleco Industries, Inc.)

               NOTES TO CONDENSED FINANCIAL STATEMENTS, Continued

                                     ------


6.    PGI Indebtedness:

      On March 9, 1998, the Company issued 788,644 shares of its $.01 par value
      common stock in exchange for the cancellation of the amount owed to PGI as
      of February 10, 1998. The exchange value of $.6211/share was determined
      using the weighted average of the closing prices of the Company's common
      stock for the 30-day period prior to February 20, 1998, the date of the
      agreement.

7.    Related Party Transactions:

      The Company had an agreement with M.D. Sass Associates, Inc. ("SASS") of
      which James B. Rubin is Senior Managing Director, under which SASS
      provided accounting, administrative, financial, legal, secretarial and
      other support services at the Company's request. The Company incurred
      costs of $4,800 for these services for the quarter ended March 31, 1997.
      In connection with the change in control described in Note 2, this
      agreement was terminated. All amounts owed to SASS in connection with this
      agreement were paid during the quarter ended September 30, 1997.

      Effective August 1, 1990, Mr. Rubin, as Chief Executive Officer, was
      entitled to an annual salary of $50,000, through the date of the change in
      control (see Note 2). All fees for his services are included in
      administrative expenses in the 1997 financial statements. All amounts owed
      to Mr. Rubin in connection with this agreement were paid during the
      quarter ended September 30, 1997.

      Also, see Notes 2 and 6.

                                       9

714781.2

<PAGE>


                                 PART I (cont'd)

Item 2.  Management's Discussion and Analysis or Plan of Operation.

         Overview.   The  Registrant   emerged  from  a  Chapter  11  bankruptcy
proceeding in 1990 with $950,000 in cash and no  liabilities.  In the years from
1990 through 1996, the Registrant's only material source of revenue was interest
on its cash, except that in the last quarter of 1996, the Registrant  received a
distribution of approximately $75,000 from a trust (the "Reorganization  Trust")
which was established in the bankruptcy proceeding to liquidate the Registrant's
assets and  distribute  the net  proceeds  to the  claimants  in the  bankruptcy
proceeding.  In the period from 1990 through  1996,  the  Registrant's  expenses
always exceeded earnings. As of December 31, 1996, the Registrant had a retained
deficit of approximately  $1,046,000,  and, as of that date, had no business and
no  material  financial  resources.  Current  management  gained  control of the
Registrant  in a proxy  contest that ended in the third  quarter of 1997. In the
fourth quarter of 1997, the Registrant  received  approximately  $800,000 from a
bankruptcy claim filed by the Registrant in 1983.

         As a result of the receipt of $800,000 in the last quarter of 1997, the
Registrant now has sufficient  liquidity to meet its current operating  expenses
for the foreseeable  future.  The  Registrant's  cash on hand was  approximately
$763,000 as of March 31, 1998, and the  Registrant's  projected  operating costs
and expenses for the fiscal year ending  December  31, 1998,  are  approximately
$100,000.  Average  annual  operating  expenses  in the  years  1994 - 1996 were
approximately  $174,000.  Operating expenses in 1997 were  substantially  higher
than in the prior years because of the expenses  incurred in connection with the
proxy contest.

         Business Plans,  Liquidity and Financial  Resources.  The  Registrant's
financial  resources at the present time, other than its cash on hand, are (i) a
remainder  interest in the Product Liability Trust which would become payable to
the Registrant, if ever, in 2020, and (ii) the possible utility of net operating
loss  carryforwards of approximately $192 million as of March 31, 1998. See Note
4, Income Taxes, in the Condensed Financial  Statements  (unaudited) included in
Part I of this Report.

          Product  Liability  Trust.  The Product  Liability Trust processes and
liquidates product liability claims asserted and makes  distributions to holders
of settled or adjudicated  claims.  The trust contained  assets of approximately
$12  million  as of March 31,  1998.  Under the terms of the  Product  Liability
Trust,  the residual  funds, if any,  remaining after  distribution of all Trust
assets to pay product  liability claims and expenses would be distributed to the
Registrant on February 28, 2020. The bankruptcy court is authorized to permit an
earlier payout in its discretion, and the Registrant may apply to the bankruptcy
court seeking early  termination of the Trust. The Registrant does not expect to
consider making such an application until claims against the Trust are settled.


712867.7
                                       10

<PAGE>



          NOL'S.  The NOL's have  sheltered  the  Registrant's  modest  interest
income and the income of the Product  Liability Trust. The income of the Product
Liability  Trust,  if any,  continues to be taxable to the  Registrant.  As more
fully  discussed  in the  Notes  to the  Financial  Statements,  the  continuing
availability of the NOL's is uncertain.

         Changes in Financial Condition. The Registrant's financial condition is
set forth in the Balance  Sheets as of March 31, 1998 and December 31, 1997. The
changes in financial  condition  between the two dates resulted  mainly from the
exchange of debt owed to a  shareholder  which is an  affiliate of a director of
the  Registrant  for the  Registrant's  issuance to such  shareholder of 788,644
shares of its Common  Stock.  Interest  income (net of interest  expense) in the
quarter  ended March 31, 1988 ("First  Quarter '98") was  approximately  $3,764,
compared to $7 for the  quarter  ended March 31,  1997  ("First  Quarter  '97"),
because of the interest earned on the $800,000 bankruptcy  distribution received
in the  fourth  quarter of 1997.  Interest  expense  for the  balance of 1998 is
expected to be immaterial.  Net comprehensive loss for the First Quarter '98 was
approximately  ($21,000),  compared  to  approximately  ($49,000)  in the  First
Quarter '97,  principally  because of current  management's  success in reducing
operating costs.


                           PART II - OTHER INFORMATION

Item 2.  Changes in Securities and Use of Proceeds.

         The Registrant  issued  788,644  shares (the "Exchange  Shares") of its
authorized but theretofore  unissued common stock,  $0.01 par value (the "Common
Stock") on March 9, 1998,  in exchange for  aggregate  indebtedness  owed by the
Registrant to an affiliate of a director in the amount of $483,616. The exchange
rate was  $0.6211 per share,  which was based upon the  average  price per share
quoted on the OTC Bulletin  Board for the 30 days ended  February 20, 1998.  The
issuance  of  the  Exchange  Shares  is  exempt  under  Section  4(2)  from  the
registration requirements of the Securities Act of 1933, as amended.


Item 6.  Exhibits and Reports on Form 8-K.

(a)      Exhibit  27.      Financial Data Schedule for First Quarter of 1998.

(b)      Reports on Form 8-K:  None.

712867.7
                                       11

<PAGE>


                                   SIGNATURES

         In accordance with the requirements of the Exchange Act, the Registrant
caused this report to signed on its behalf by the  undersigned,  thereunto  duly
authorized.

                           Ranger Industries, Inc., the Registrant


Date:  May 14, 1998        By: /s/ Morton E. Handel
                              ---------------------
                                Morton E. Handel, President, Chief Executive
                                  Officer and Acting Chief Financial Officer

712867.7
                                       12