IFAN Financial, Inc. (OTCBB:IFAN) Begins to Plateau
The pump for IFAN Financial, Inc. (OTCBB:IFAN) has been going on for nearly two months now but it is still as active as ever. Well, with a disclosed budget of $3.5 million it is no wonder that investors are still receiving the hard mailer brochure touting the stock. Quality Stocks are also trying to earn their $25 thousand compensation paid by IFAN by hyping-up the company on various message boards.
So far the pump has been quite successful in pushing the stock to unrealistic price ranges. Although the daily gains have never been that big the steady and consistent climb brought IFAN to above 60 cents per share. It seems that the pump might have reached its limit though with the ticker sitting nearly flat for the last four sessions. Yesterday it closed less than half of a percent in the red at $0.625.
It seems that the fate of the stock will be decided by the annual report that should be filed by Monday. If it shows some improvement investors might remain hopeful but if it shows the same dismal figures as the latest quarterly a steep downtrend could form. Let’s just remind you that at the end of May IFAN had zero cash, zero revenues and $27 thousand in operating loss. They recently acquired Mobicash America Inc. d/b/a/ Quidme but its financials are in an equally as depressing state:
• current assets: $4,586 in cash
• current liabilities: $223 thousand
• NO revenue since inception
• accumulated deficit: $752 thousand
In his November 24 interview the CEO of the company stated that they will need around $3 million in order to complete the development of their products. By selling 3.7 million shares at $0.27 each IFAN were able to secure $1 million in funds but they will have to sell a lot more equity in order to reach their target.
But the biggest red flag around the company are the 29.6 million free trading shares that were sold for exactly $5350 in proceeds. The increased awareness created by the pump gives these people the opportunity to dump their discounted shares on the open market and reap millions in gains.
It should be obvious that without the pump IFAN will not be able to support its current market cap of nearly $50 million. If the promotion comes to an end or if the millions of extremely cheap shares find their way to the market the stock could plummet for the bottom of the chart. Take into account all the risks and adjust your trades accordingly.
