Is Beauty Only Skin-Deep With Inscor Inc (OTCMKTS:IOGA)?

IOGA.pngAs the chart on the right clearly shows, until the beginning of 2013 things were pretty uneventful around Inscor Inc (OTCMKTS:IOGA). The active trading began in early March and since then they have registered over 500% in gains. The excitement has been partly due to a report that was issued by an entity called 007StockChat in which we read about how great IOGA‘s business idea is. But what is it exactly?

Well, they call it FIT for short and no, it’s not a pill that will make you slim. FIT stands for Finance Insurance Trust and it’s supposed to provide a cost-effective solution to some unfunded liabilities that government state agencies and institutions face with respect to ensuring well-being for retired citizens. Most of the explanations available on the Internet are rather vague, but in all honesty, we should point out that it’s a noble cause.

We know 007StockChat from their newsletter which we have been receiving for quite some time now and we know that they’re not inclined to do these sort of reports for free. Sure enough, they received a compensation for their efforts, but is there any 3DCGD.pngmerit to their work?

If history is anything to go by, that’s somewhat dubious. They did a similar report on Discovery Gold Corp (OTCMKTS:DCGD) on May 7 and things didn’t really go according to plan. In fact, in just over three weeks, DCGD have lost around 46% of their value.

In addition to 007 Stock Chat, some other entities making supposedly expert research reports have also jumped in. We’re talking about Stock House Group and Goldman Small Cap Research. We have seen them trying to convince traders that various companies are worth investing into by putting some bombastic target prices to the tickers, but as we wrote numerous times, their success rate is not that great.

Let’s get back to IOGA, though. Until May 2011, they were dealing in an altogether different field of operations. They went by the name International Oil & Gas Holding Corp and while it’s not specifically stated anywhere in their filings, you’d have probably guessed by now that they were pumping oil out of the ground. For the last couple of years, however, they have been hard at work developing the aforementioned FIT and they seem to be proud of it. There are even some revenues registered in the latest quarterly report, but what shocked us most of all is the fact that they finished the period in the green. That’s right, there is a net income rather than a net loss. Before you go jump right in, however, we suggest that you look at the summary of all the important figures below:

  • cash: $397
  • current assets: $14 thousand
  • current liabilities: $413 thousand
  • quarterly revenue: $49 thousand
  • quarterly net income: $271

You would agree that less than $300 in income for a full quarter is not enough to claim that IOGA is an investment that is going to make you very rich but that is what all the reports and the paid newsletters are saying at the moment which means that they are, in effect, pumping the stock.

And we all know that when you are considering an investment into a pumped ticker, you should always make sure that you’ve done your research first. We’ve did ours and we managed to find some interesting things.

There has been a lot of changes in the management team since IOGA started dealing with the insurance trust fund and they can even brag about an NBA star currently sitting on the Board of Directors. The people who are really running the show, though, are the Chairman of the Board and the CEO (according to the Initial Disclosure Statement, they are the ones who own the most shares, as well). Let’s start with the Chairman of the Board, Mr. Keith McAllister. It’s interesting to see that the filings for the periods before the name change (May 2011) seem to be gone forever, but we suspect that even back then, Mr. McAllister was part of IOGA‘s management team. How do we know? Well, we stumbled upon this entry at where a person is complaining about Mr. McAllister and when you read through it, you will see that some doubt about the legitimacy of the company are expressed as well. Another user also wrote about Mr. McAllister, but this time, the allegations are related to an insurance company called CPS Insurance. A reference to IOGA is made there as well.

Still, the CEO, Mr. Richard Doerr, should have more power over the company than the Chairman of the Board, right? Not necessarily. Mr. Doerr’s stake at IOGA is quite a lot smaller than that of Mr. McAllister and we’re pretty sure that the two men were working together at the CPS insurance entity. IOGA‘s initial disclosure statement, at least, says that Mr. Doerr was the CEO there.

We do understand that the allegations against Mr. McAllister might not be 100% founded, but the fact that we’re finding so many of them, including this document from a court case against a person that goes by the same name is certainly a cause for concern. That is why, you should weigh the risks carefully before you jump in led by the optimism spurring out of the paid reports and emails.

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