Infinity, Inc. (OTC:IFNY) Wakes Up, Aims for Record Price
Infinity, Inc. (OTC:IFNY) is running for its historical highs, and volumes are high enough to add a further 40 cents to those levels. Currently on an upward trend, IFNY is inviting investors via vigorous press release information, and our records show the company has not been promoted so far. 
Oil and gas prospecting are a common bid for wealth among small cap companies, but it is important to check if the company has achieved anything substantial or is still in very preliminary stages. To see if IFNY has the resources to pull off an operation, its financial data provide some clarity:
- $95,11 cash
- $4.3 million full-value oil and gas prospects, $5,000 other assets
- $5.2 million total current liabilities
- Zero revenues
- $4.18 million quarterly loss
As it is easily seen, the company is still in the pre-market stage of acquiring energy drilling properties, which, though adjacent to large and productive oil fields, promise nothing beyond the educated guess of a geologist. Otherwise, the press releases from the company mainly contain announcements for participation in investor conferences, unknown how this could affect materially the oil and gas drilling business.
Another red flag for this company is the absolution of $700,000 in debt, and the conversion of much higher amounts of debt into common stock, creating danger of dilution. The company’s market cap is disproportionately high for the assets it holds, more than $46 million, with a little more than 20 million shares outstanding. However, IFNY has 75 million shares authorized, so the debt-financing and conversion to shares may happen again in the future.
One similar business model and a similar graph comes from Worthington Energy, Inc. (OTC:WGAS). The oil and gas prospector was last promoted in the summer, but in February shot up on news of possible new plots. In this case, the news for a new plot deal caused the stock to increase its price four times.
In its latest rising trend, IFNY has shown possibility to fall more than 15% in a few short days, so it is best to estimate your ability to absorb risk and losses before attempting to ride the latest upward movement.
