Stereum sanguinolentum

Stereum sanguinolentum is a species of fungus in the Stereaceae family. A plant pathogen, it causes red heart rot, a red discoloration on conifers, particularly spruces and Douglas-firs. Fruit bodies, which are produced either on dead wood or on dead branches of living trees, form a thin leathery crust on the wood surface. Fresh fruit bodies will bleed a red-colored liquid if injured, reflected in the common names bleeding Stereum or the bleeding conifer parchment. It can be the host of the parasitic jelly fungus Naematelia encephala (synonym Tremella encephala)...read more on Wikipedia.