A Paper Mailer Pump Pushes IFAN Financial Inc (OTCBB:IFAN) Further up

A couple of months ago, IFAN Financial Inc (OTCBB:IFAN) went through some changes. There was a reverse merger, the name was changed, and there was a 140 for 1 stock split. The company ditched the idea of producing a clothing line for children made entirely of organic materials and said that instead, it’s going to produce devices that will enable convenient, affordable, and, most importantly, safe electronic transactions.

Spending money through your mobile phone is not something our society is completely used to at the moment which means that if IFAN want to draw a large number of customers, they’ll need to prove to everybody that they are a credible company. Unfortunately, they might have some problems with this.

Let’s start with the address of their corporate headquarters. Basically, it’s a UPS store. It’s hardly the most confidence inspiring location for the principal offices of a publicly traded company whose market cap stands at around $44 million.

Then we come to the people running the whole show. IFAN‘s CEO, J. Christopher Mizer was once at the helm of Bio Matrix Scientific Group Inc (OTCMKTS:BMSN). While he was there, his company went through more than a few paid pumps. Numerous promotional outfits have tried to convince investors that the ticker is going to make them very rich, but the truth is that right now, BMSN is nothing more than a heavily diluted double-zero stock that has a rather appalling 10-Q.

Speaking of 10-Q’s, the figures presented by BMSN are pretty horrific, but they’re still more solid than what IFAN has to show us. Here’s what Mobicash America Inc (IFAN‘s subsidiary dealing with the secure online transactions) had on August 31:

  • cash: $4,691
  • total assets: $14,215
  • total liabilities: $3,114
  • NO revenue since inception
  • quarterly net loss: $444,744

All in all, based on the facts and figures above, IFAN doesn’t look like the most appealing investment opportunity on the OTC Markets. Yet, people simply don’t care.

Out of the last ten sessions, only one ended in the red and the cumulative gains over that period amount to no less than 77%. During yesterday’s session alone, IFAN managed to add a respectable 22% which means that it’s currently sitting at $0.55 per share. The volumes are also picking up which is somewhat strange considering the fact that the company hasn’t made any announcements since the reverse merger.

Once you do some digging around, however, you’ll see that there’s a logical explanation for the increased interest in the stock – it’s being pumped for $3.5 million. A link to a landing page has been flying around for the past few days and a paper mailer copy of it is also popping up in people’s mailboxes.

The hype and excitement is certainly supporting IFAN at the moment, but before you jump in, you have to ask yourself: “Does the stock have what it takes to sustain the current levels?”.

You need to get to the answer on your own, but while you’re doing it, you must bear in mind that, as we mentioned yesterday, a couple of years ago, some unnamed investors bought a total of 29,600,000 shares of IFAN common stock for $5,350.

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