Telefix Communications Holdings Inc. (TLFX)

[pennypuptech]

R/S Outlook for $TLFX

In hopes to bring further context to the recent Reverse Split, I enjoy taking deeper dives into the motivation behind things... So I ask a few questions and attempt to answer them.

Background Information
R/S Size is 100:1, meaning for every 100 shares you had, you will get one. There will be a total of ~5,000,000 shares in the A/S, with presumably, 950M shares still in the O/S. The share price will increase 100-fold, from presumably .0005 -> .05.

Reverse Splits are generally a negative thing, especially in the Penny Stock Market. As we've seen time and time again, micro-cap companies R/S to free up more shares to dilute... things aren't as 'simple' with TLFX.

Most Penny Stocks R/S to dilute more... there are a few interesting things with $TLFX.
1. They haven't sold a single share in the open market for well over 6 quarters. It has been confirmed that even through the last run-up in April/May that they didn't sell a share.
2. They still had 500M shares in the O/S to dilute with, prior to the Reverse Split. If their motive was to give them more room for capital - why wouldn't they just reverse split later after they've exhausted the existing 500M shares that they could have sold?
So - if not to raise further capital from selling shares on the open market... what could they possibly be trying to achieve?

We know they've mentioned a technology division spin-off - Telefix Technologies, and have said in their quarterly that they're looking to move their proprietary technology to that stock. We know they have a Partnership agreement with Verizon, and must maintain 40,000 subscribers to keep that partnership alive.
Share price means nothing to Verizon... only revenues.

In conclusion
It'd evident that TLFX has plans with its' Verizon Partnership Deal. One could look through the last 9 months and presume that the R/S is to dilute, I think it's far from that. Obviously, the company needs the share price up for something. If we assume it's NOT to dilute, which they could've done anyway prior to the R/S, then it must be for something different. What's most interesting to me is that there were not many preferred shares out there. We know that there's been a large number of individuals on the $TLFX board that have received share compensation... are they in common shares? From my eye it seems so.

1. Increase share price to look for more serious investors.
2. Increase share price to look at uplisting - Mezaun has made it well known her disdain for this market and the people it contains.
3. Raise share price to look more legitimate to customers. Does anyone really want to work with a 'Penny Stock'?
4. My least favorite for them all - they want to get out of this market entirely. Most 'legit' companies don't need the stigma of being a Penny Stock when they're trying to do business. What better way to get out of the public industry than crash your share price and perform an outright buyout?
5. I believe the most likely answer here is that $TLFX thinks big things of themselves and where they're going. I think most people see that. We have a company here that has really violated any 'rule' of the Penny Stock market - i.e. pander to the pumpers and dilute as share price rises. TLFX has shown time and time again that it has NOT diluted into these mini-runs. They have financing locked up as they've pulled in private investors per latest Quarterly release. What is blatantly obvious is that there is little concern for current shareholders.

In summary: I'm sure the company believes it'll be successful. It has plans for itself. Whether or not those plans involve current investors remains to be seen. Current investors are along for the ride, that's plain and simple. I think the next couple of months will be telling.

Does $TLFX resume share price maintenance & growth as it has committed shares to a significant (5+) amount of advisors and investors? Some with names connected to AT&T, Verizon, & Erickson? Trust me - if they needed investor's money, they'd be pumping and dumping like 95% of other stocks... Tune in next week...