IFAN Financial Inc (OTCBB:IFAN) has dropped big in recent weeks as I predicted it would back when the stock was trading near $1 a share. At the time I said that ”long term IFAN could collapse from current levels.” as the sock lacked any real fundamentals to trade on once the promo dollars ran dry.
IFAN was a multi-million dollar hard mailer promotion from the McShane Letter responsible for such picks as USGT, NVGC and now IFAN slows to an end. The IFAN campaign sports a 15 page glossy hard mailer and a landing page at ifanreport.com backed by a $3.5 million dollar budget from Mintefor Investments LTD.
IFAN Financial Inc (OTCBB:IFAN) says they design, develop, and distribute software to enable mobile payments that include the ability to use a debit card and corresponding PIN number while purchasing online on a mobile phone, tablet, or computer.
The Company was incorporated in Nevada in 2010 as Infantly Available, Inc. focused on developing and distributing an organic clothing line designed for children. In September of this year they changed their name to IFAN Financial Inc and affected a 1 for 140 forward split of the common stock.
The promotion on IFAN began immediately with hard mailers featuring the McShane Letter hitting homes across the Country in early October. The glossy hard mailer stated ”Forbes Magazine calls it…The $15 Trillion Gold Rush!” touting IFAN as ”a brand-new technology that lets customers use debit cards online without giving their credit card info…” and that it is likely to be purchased by Apple, Amazon, or Google.”
IFAN disclaimer showing $3.5 million budget: “Mintefor Investments LTD paid three million and five hundred thousand dollars to marketing vendors to pay for all the costs of creating and distributing this Advertisement, including printing and postage, in an effort to build investor and market awareness. Don McShane received twelve thousand dollars for this advertising campaign and expects to receive an unknown amount in subscription revenue. Viewers of this advertisement should understand that trading activity and stock prices in many if not all cases tend to increase during the advertisement campaigns of the profiled company and in many if not all cases tend to decrease thereafter”
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We can look at the prior picks of the McShane Letter to get a better sense of where IFAN is headed; USA Graphite Inc; USGT ran from around $0.30 to highs near $1 after they announced it as their pick in ealry 2013 and now trades well below a penny. Nevada Gold Corp; NVGC ran from pennies to over $0.60 after the McShane Letter featured it at the end of last year, the stock currently trades for well under a penny.
So we can see from the McShane Letter previous promotions that the stocks tend to make parabolic moves upwards on massive volume during the promotion and then collapse to less than a penny afterwards. This might have something to do with the featured Company’s lack of any real fundamentals; according to the 10Q IFAN filed on August 28, the Company has $0 cash on hand up from $1,355 last year. Basically they have no assets, $0 revenues to date and only losses during their limited operating history.
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Currently trading at a $23 million market valuation IFAN has minimal assets and $0 revenues to date. The stock moved big on the $3.5 million budget: “Mintefor Investments LTD promotion but has come back to where it started just as we predicted it would. We will be updating IFAN as events unfold so make sure you are subscribed to Microcapdaily so you know what is going on with IFAN.
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Disclosure: we hold no position in IFAN either long or short and we have not been compensated for this article.