The $3.5 million Pump For IFAN Financial, Inc. (OTCBB:IFAN) Loses Steam
Yesterday the stock of IFAN Financial, Inc. (OTCBB:IFAN) suffered a harsh correction of nearly 15% and it closed at $0.44 per share. For most of the session the stock was sitting just a little lower than its previous close but right before the closing bell it plunged for the bottom of the chart. Since the start of November the stock has wiped over 30% of its value and it seems that the $3.5 million pump is starting to lose its effectiveness.
Still, thanks to the landing page and the distribution of a hard mailer IFAN is managing to keep most of its pump-induced gains. Yesterday they even made their connection with QualityStocks official by publishing a new press article. The Compensation Disclosure from the official site of Quality Stocks reveals that they have received a $25 thousand compensation for 150 days of marketing services.
Even after yesterday’s crash IFAN is still commanding a market cap of over $41 million, valuation that has absolutely no connection with the reality of the company. The same could be said about the overly-enthusiastic statements made by the pumpers. Apparently Don McShane has given IFAN a 5 month target of $4.50 per share with a long-term target of $19. Keep that in mind when you take a look at the last reported financial by the company – at the end of May they had zero cash, zero revenues and $26 thousand net loss.
Even the recently acquired Mobicash America, Inc. D/B/A Quidme doesn’t inspire much confidence with:
• $4,691 cash and current assets
• $3,114 current liabilities
• NO revenue since inception
• $444 thousand quarterly net loss
Unfortunately the red flags around IFAN run far deeper than their depressing financial results. The official headquarters of the company appear to be nothing more than a UPS store while the CEO – J. Christopher Mizer, in the past run the company Bio Matrix Scientific Group Inc (OTCMKTS:BMSN) who have been targeted by paid pumpers on numerous occasions.
But let’s return to IFAN’s current promotion and ask the question – who would benefit the most from the increased awareness? Well, not so long ago the company sold 214 thousand shares for just $5350. Although that initial amount wasn’t big enough to cause any concerns that is no longer the case thanks to the 140-for-1 forwards split performed this September. That is right, a little more than two months ago the people who bought those 214 thousand shares suddenly found themselves owning more than 29 million shares. So far IFAN has also issued close to a million of its Series A preferred shares. Each and every one of them can be converted into 700 common shares.
It should be obvious that IFAN is an extremely risky stock that demands careful research to be done prior to any trades.