Life Stem Genetics Inc (OTCBB:LIFS) Marches On

At first glance, Life Stem Genetics Inc (OTCBB:LIFS) seems like a rather interesting stock. As evident from the chart on the right, the ticker is not the most explosive mover on the OTC Markets, but it seems incredibly consistent. Trading volumes are healthy enough and yet, there doesn’t seem to be too much brouhaha around the company.

The business plan is quite interesting as well. As we mentioned last week, LIFS recently changed the company name, the ticker symbol, and embraced a new strategy. The plan of selling Serbian delicacies through a fast food chain was ditched and a development stage healthcare company was acquired. LIFS is now in the stem cell sector which, as you probably know, is quite hot at the moment and while the pro-forma financial statement doesn’t look like much, they have completed a $500 thousand private placement which should give them a little room to breathe while they get the whole thing going.

In addition to this, last Thursday, shortly after our article went online, LIFS issued a press release with which they informed us that they have signed a Letter of Intent with a Canadian enterprise that controls over twenty-five clinics. This should mean that more and more people will have easier access to LIFS‘ treatments which is good for the patients and even better for the company’s future financial statements.

Things are looking good and although the ticker is now sitting comfortably above the $1 per share mark, it still seems like an enticing proposition. Is that really the case though?

Well, time will tell. While the letter of intent certainly sounds interesting, it can not guarantee massive success. What’s more, LIFS say that they will not disclose the name of their new partner until they sign the definitive agreement which should happen soon, but we still can’t understand the reasons for the secrecy. In any case, a bit more information and, preferably, a better-looking financial statement should give everyone a better understanding of where the company is heading. In the meantime, we have another, major problem.

There’s a paid pump for LIFS and it’s quite expensive. As we mentioned last week, the company itself has paid Contrarian Press no less that $300 thousand for a report that is full of colorful pictures, pretty diagrams and optimism that we rarely see even from the pumpers.

The same report also serves as the base for the $1.8 million landing page and it contains some discrepancies. It says, for example, that LIFS have already completed over five thousand adult stem cell treatments. If this is true, then why don’t they have revenues?

This is a question that will probably remained unanswered and while the lack of success so far doesn’t necessarily mean that LIFS will fail in the long run, it warrants quite a lot of caution in case you decide to invest in this particular ticker.

Especially with the pump still running. We see small cap companies cave in under the promotional pressure virtually every day and some of the more recent examples include Alkaline Water Company Inc (OTCBB:WTER) and Nutranomics, Inc. f/k/a Buka Ventures, Inc. (OTCBB:NNRX). The charts on the right should give you an idea of how badly these campaigns usually end up. Make sure you tread carefully and consider all the options before putting any money on the line.