Ifinix Corporation (INIX)

[forgreen]

My Breakdown of INXR Overview PR

One board member posted that the PR is a mission statement. I agree. Very clearly, it is a road map with points of execution to be achieved along the road to the market release and company growth and shareholder success as a result.

Original PR text is in bold and selectively underlined. My comments headings are bold, but my commentary text is not bolded.

Original PR Text found on company website is here:

http://www.ifinix.com/dnn/Home/IfinixNewsDetails/tabid/111/Default.aspx?ifinixPodcastId=31

iFinix Corporation Discusses Company Agenda for 2007

iFinix Corp. Jamaica, New York (Other OTC: INXR.PK- News) released today a comprehensive overview of iFinix's corporate strategy and goals for 2007. Chairman Drew Budhu commented, "As iFinix embarks on an accelerated entry into the financial marketplace with its comprehensive line of real time and trading platforms, the level of inquiry from prospective users of our products, shareholders and potential investors has increased dramatically. The following summary will prepare our clients for their future with iFinix and address shareholder concerns at this opportune turning point in our corporate history."

Comment: Laying the groundwork for their first customers, many of them whom may be from among our circles. Keeping us informed of what is ahead so we become their best advocates. This is just good common sense.

Core Objectives

iFinix CEO Doug Spadaro stated, "iFinix's objectives are three-fold. We will deliver quality real time trading tools and execution platforms to the financial marketplace at a competitive price, effectively support our subscribers and eliminate any obstacles that limit achieving solid returns for our shareholders. We consider these objectives to be more than mere goals. They are our obligations to the consumers and shareholders who support us and whom we work for."

Comment: Implied is iFinix subscription products will cost less than some products you are paying more for like Alphatrade.

Tech support is being prepared. Means release is getting serious because it is a cost you don't take on unless you are going to support real product. And, most importantly, they know that support is critical to customer retention.

Exhibits consciousness as I am inferring from these statements (and because they address it more fully further into the text) that they understand it will take proper share structure management and disclosure to remove the higher barriers to achieving the best valuations for INXR's share price later. They are declaring themselves as being on board with a win-win corporation/shareholder strategy.

iFinix Financial Products

The iFinix product suite will initially consist of three products. After conducting extensive market research, the company will rebrand their product suite along the following lines:

Comment: They are paying attention and evolving their products. The branding seems to more accurately take into account where they might be able to take market share for real time services and the more precise orientation of the trading platform which the re-branding no longer implies is limited to the trader's level of experience.

iFinix RealTime is the desktop real time platform being prepared for release. The modular components offered include Streaming Quotes with unlimited ticker lists, Level 2, Time & Sales, Alerts, Charting, Streaming News, Financial Content and Market Research.

Comment: Sounds like it can be a worthy successor to AlphaTrade.

iFinix RealTime will also be upgraded soon after release to include stock screens and real time scanners with fully configurable market motion filters. iFinix will be including these added functions at no extra cost to provide a superior value and competitive product.

Comment: That then upgrades it as a potential substitute for MicroCapFeed (which is $100 or more), especially if the aggregate costs are less.

iFinix Trader will add trade execution functionality and account management features to the iFinix RealTime platform.

Comment: Key point here for me is this is a desktop product which is preferable in many cases to Java programs of some competing products. This RealTime platform, and the Trader platform execution functionality built on top of it, could be a very solid choice for many of us.

I have both web-based and desktop installed trading programs and I lean towards installed programs which often have more stable data feeds (though EFinix will be a mobile solution that is web based which is also needed if you want to track and trade on the run).

iFinix Trader will integrate with partnered broker-dealers thus affording iFinix users high speed trade executions at a range of brokerages. iFinix Trader will be made available both to retail traders and professional organizations.

Comment: partnered broker-dealers - multiple accounts at brokers with favorable commissions and good execution is a winner for any of us who like to trade in the microcaps. All we need then is unlimited trades per shares and brokerages that welcome trading in all BBs and Pinks and this will be great. Dual marketing plan? Though I think retailers are going to be their bread and butter target audience it would be very encouraging if they later announced usage by larger trading organizations.

With iFinix RealTime rolling out first, iFinix Trader will go to market release as new brokerage partnerships are announced. Users will be able to trade and manage multiple iFinix-partner brokerage accounts aggregated within a single iFinix Trader environment. With the ability to hook into an assortment of high-speed direct access brokers, iFinix will continue to expand your trading choices as each new broker joins our network.

Comment: Sounds like we have a map coming into focus here. We're looking at a rollout of RealTime soon. I think we should keep our eyes peeled for any kind of advertising by iFinix in the coming month.

Once RealTime is out and we're all running our trial versions and subscriptions are starting up, then we should start looking for signs of brokerage relationships being announced, trade executions being beta tested and then the Trader functions being released. Then we are really chugging along.

Efinix is a web enabled version of iFinix Trader that will run on desktops and on mobile devices. With Efinix, you will be able to track the markets, manage your portfolio and trade online using the same execution features as iFinix Trader. Efinix is in advanced stages of development and being prepared for release.

Comment: This rounds out the product line and market targeting. They get to expand their desktop audience by making them fully mobile and they get to readily compete for what is next: the rapid growth of mobile market demand for trading tools.

I think this is good timing in the marketplace and could be a winner. Also, if you are happily using the Trader desktop through participating brokers, you'll probably sign up for EFinix to be mobile. That is fair for us and good extra income for them.

Product Strategy

iFinix's business model is subscription based for iFinix RealTime and Efinix. Users that trade through a participating brokerage will receive iFinix Trader on a low or no cost basis. iFinix will receive a percentage of each commission fee from trades executed using iFinix Trader.

Comment: That's the business plan in a nutshell. With a really good opportunity on the subscription side, if they are competitive in features and pricing relative to the previously mentioned vendors, then they can get an income stream going on the RealTime and Efinix subscriptions.

And, if you sign up with one of the brokerages they are in business with, you may get the same tools for free or low cost if you want to trade through them too. This makes perfect sense as the competition for your business grows and larger vendors add new features and tools to their in-house platforms.

What I think would make this really click is getting brokers offering us unlimited share trades on commissions in the $5-10 range. This is the master key IMO because there are thousands of actual brokerages out there. That's right, a ton of them. This has nothing to do with hooking up with Ameritrade or Schwab. It has everything to do with tapping into a large pool of brokers not set up yet with their online trading tools.

Many smaller brokers have zero web presence and many have no retail trading platform at all. They may even be market makers too, have nice trading set-ups in house for serving their existing clients, but no web presence. The web continues to explode, so there will be plenty of interest in iFinix Trader I think. They may service large accounts and institutions as a direct trading desk, but many of them would like to start capturing retail trading business too.

So they partner with a company like iFinix. It is a win-win-win situation for both of them and for us. The broker gets clients brought to them by iFinix and iFinix gets revenue stream by sharing the commissions generated and we get a microcap friendly brokerage that is eager to serve us and retain our business.

I think the numbers here could be outstanding. If INXR were to receive 10-30% of the commissions (hypothetically anywhere from 0.50 to 2.00 per trade for discussion sake) and you have your first 1,000 active microcap traders doing on average 5 trades a day, you can already see how the daily income stream from brokerage partnerships could quickly generage $5,000-10,000 or more daily not that far after launch.

The longer term potential then is exponential if dealing with 10,000 users and higher, but just in the short term the implications are rewarding to the point we could see a no debt company we hold shares in go cash flow positive quickly. Could be amazing if these pieces fall into place. The road map is telling us this may be coming after all so we should consider it all now.

Due to the large range of brokerage services and tools investors employ, this diversified business model ensures iFinix products will be available in all contexts and the company will generate an income under all scenarios.

Comment: Covering their bases and not becoming overly dependent on one product or one income stream method. Good approach.

iFinix will offer various subscription pricing tiers for essential platform services plus add-on services and extra exchanges at a cost less than the basic and total package prices of other vendors with comparable offerings.

Comment: This should benefit the consumer who wants something like just Level 2 and T&S for Pinks without paying as much.

As market penetration of the iFinix platforms increase, communications protocols for other programmers will be made available to encourage the building of product add-ons. The company will partner with these developers and assist in the marketing of these value-added products.

Comment: Planning ahead. This makes perfect sense. First off, the company can build great momentum if they are signing up many brokerages because that gives us, the users, the ability to have and manage multiple accounts from a single platform.

From a growth point of view the more brokerages they engage and the larger the user base the more R&D they can spend to expand their tools and services.

And with a larger base INXR can attract high quality entrepreneurial programming talent that sees an opportunity to piggyback on the products and build another income stream from their add-on products. Another win-win-win scenario.

All iFinix product is coded by iFinix. Earlier iFinix product demos are no longer active or to be considered representative of market-ready products soon to be released. Free product trial subscriptions will be offered when each product is released.

Comment: I think this clears up any questions about their product. If they wrote it all thats the proprietary stance we need to see. And we will all get to play with the product soon too.

Product Support

When iFinix RealTime is officially released, live technical support will be provided via chat messaging on the iFinix website and by email on weekdays from 8 a.m. - 6 a.m. EST. The company guarantees weekend support requests will be resolved by Monday market open.

Live support hours may be expanded later as the user base expands. Chairman Drew Budhu will go to India soon to review current development efforts and to finalize the training of tech support staff, initiate support tracking procedures and establish knowledge base protocols.

Comment: Solid. Absolutely required for the products to succeed and retain customers. I'm very happy this is happening now. It lends validity to the expectations of the first release upcoming. Indian team gets first mention here which is then touched on again later.

Management

iFinix was founded by Drew Budhu, a specialist in distributed computing environments. Mr. Budhu is the chief architect of iFinix products and technology initiatives

Mr. Budhu comments, "I have held fast to my vision of making iFinix a value-added proposition for both the consumer marketplace and our shareholders. I worked hard to keep our company going until we reached the threshold of delivering product to the marketplace and we are finally on our way. We have no debt, take marginal salaries, keep our costs lean and are determined to grow the company in 2007."

Comment:So far I have absolutely no reason to doubt this. As I have said more than once before, I have yet to catch them in a lie and I continue to monitor their progress very closely.

No Debt statement - This is huge for all shareholders. It means they could go profitable the moment their revenues exceed their monthly burn rate. This implies for me that regardless of the dilution of 2006, they have kept money in the bank TO BUILD THE COMPANY, not line their pockets by printing paper.

Low Salaries, Cost Conscious - That is what can keep the burn rate down and allow them to go profitable sooner due to not having debt. By having that lower burn rate keeping costs in check while ramping up the revenue stream, the company may surprise many people and have a solid growth and profitability strategy for 2007, not some time way off in the future.

CEO Doug Spadaro has held management positions at Citicorp, ABN/AMRO and Paget Group and has an extensive background in financial services. He is involved in strategic planning, daily operations and developing the broker-dealer network for iFinix trading products.

Comment: The background is excellent and what gets me really engaged is the last comment. Bring it on. I want low cost unlimited share trades at multiple brokers on one platform. Go get em Doug.

Ricardo Brillon is the Chief Information Officer of iFinix. Mr. Brillon develops the core programming of iFinix product while project managing additional outsourced development teams, including about a dozen developers currently working full-time on iFinix products in India.

Comment: Excellent statement. Think about it. Small company with limited resources is in step with the ways the world. Outsourcing and web based communications and project management gets it done these days.

Look up Digg.com. Worth a fortune now. That website was developed paying a programmer from elance about $10 an hour (same programmer is now part of that success story and has further benefitted too).

The point is we have resources working on this company's platform, readying it for release, testing it and getting ready to support it.

Naveen Vasudevan is the lead project manager in India who oversees the local workforce dedicated to iFinix software development and technical support.

Comment: Their main man in India. I spoke to him and he was very cordial, plugged into what iFinix was developing and sounded knowledgable. I have some corporate background that allows me to look at a software company logically and he sounded like he was in the developmental chain where he should be with Drew and Ricardo working providing the overall guidance from the U.S. I discussed product points and what I'd like to see and he seemed on top of it all.

Craig Eckert is CEO of iFinix subsidiary, R&B Computer Systems Inc. With over 20 years of technology experience and an engineering and management background, Mr. Eckert has developed strategic relationships with companies such as Ernst & Young, Accenture, Nortel, IBM, Compaq, EDS, Lucent and Goldman Sachs.

Comment: The background is very impressive. I will be in touch with Mr. Eckert to learn more as he brings what looks to be very strong contributions to the overall success of the company.

Subsidiaries and Acquisitions

R&B Consulting is presently the only iFinix subsidiary. Under Mr. Eckert's full-time guidance, R&B is currently partnering with regional and international technology consultancies as a personnel and solutions provider. Drawing on Mr. Eckert's experience, iFinix expects R&B to contribute revenues in 2007 and grow significantly in the following year.

Comment: Keeping it real. May be a factor through this kind of consultancy work building on R&B and Drew's past work experiences. Gravy if it clicks, not critical to shareholders if it does not or takes time to build. I need to learn more.

Mr. Eckert is responsible for locating acquisition targets that would increase iFinix revenues and generate profits. Several private companies presently operating with positive cash flow are under consideration. R&B has already qualified for a Small Business Administration loan that would facilitate a contemplated acquisition in full without any need for dilution of iFinix shareholder equity.

Comment: Good things to come? Sounds promising if they are able to bring in immediate revenues with profits while already debt free, especially if it is via conventional and non-dilutive financing. That is more than interesting, it may mean there are greater alliances backing up the future of this company than we know because to qualify for the loans is something many small start-ups struggle to get.

Mr. Eckert's oversight of this separate entity ensures there will be no loss of focus on the primary financial products and services business of iFinix.

Comment: Good. No matter how good R&B becomes, it is not going to get in the way of the primary mission of iFinix kicking butt in the trading world.

Affiliations & Partnerships

iFinix has in place all data feeds through agreements with CMA, Comtex and Pink Sheets.

Comment: Lock and load; they have that in place so obviously they are able to facilitate all final development and beta tests with the real deal. Getting closer to release.

CMA is currently a major financial data provider to the Latin American trading markets. The iFinix and CMA association already extends beyond access to CMA exchange feeds.

Comment: Specifically, CMA is doing business in Brazil, Argentina, Uruguay, Chile and Spain. iFinix's website shows the data feeds CMA gives them access to. As far as the relationship is concerned, because iFinix has built their own product apart from CMA's product line, then there may be some level of cooperation and sharing of expertise between both parties.

As iFinix grows, the synergies between the two companies may then be extended towards mutually obtaining market share in their respective North and South American markets.

Comment: This approach can often be one of the stepping stones to accelerated growth for smaller companies. The smaller company realizes they may never aspire to becoming even a top ten provider in a rapidly growing global financial marketplace, but to get just a percent of it makes iFinix super successful and very profitable.

If the progression to having multiple U.S. brokers hooked into the iFinix Trader platform gives INXR growing bargaining power of its own, then they may become an access point to the U.S. markets for CMA's Latin American and Spanish customers and vice versa. Sounds promising to me.

Other partnerships will be explored on a regular basis as iFinix seeks to expand their products and services and increase their market reach to include all levels of retail users, professional traders, proprietary trading shops and brokerage houses. As the iFinix customer base grows, the company will explore the possibility of applying for its own broker-dealer license and thus become a fully leveraged financial services provider and brokerage house.

Comment: This would be a stunning accomplishment and the fulfillment of the business plan that has been laid out before us. It takes money to apply for the broker-dealer license, but if we see the company is signing up hundreds of users to trade on their platform and the growth is significant, they would have the cash flow to go for the broker-dealer license pretty quickly.

Being a brokerage themselves with an already heavily involved portion of their user base coming from the microcap trading and investing community, iFinix would be able to leverage and capture one of the greatest market niches available in the U.S. equity brokerage markets today in my opinion.

With the volume of trades microcap traders make if iFinix really serves our segment and exhibits continued love and respect for their shareholders, then becoming brokerage would be a monster move.

So many brokerages are not responsive to our needs. They may try, but fall short. But if you have a brokerage which has continued to do R&D of their product base in response to our feedback, we may have both the toolkit, executions and commission structure that really serves our needs completely.

Corporate Governance

In positioning the company for a listing on the OTCBB exchange, iFinix has adopted policies of full disclosure and corporate transparency.

Comment: Not a common statement by Pink Sheet companies. Some give lip service then do nothing or worse. Thus far the company has divulged many details and posted their prior documents and are showing all the signs of a Pink readying for an uplisting to the better OTCBB exchange so I'm inclined to take this statement with a greater level of confidence.

2006 annual financials are nearing completion and should be made publicly available within several weeks.

Comment: This is a strong indicator of one key development we will be anticipating on the near horizon then. Based on this PR we will be looking to confirm they are debt free and have at least enough cash in the bank account for a low burn rate of $10-20,000 (my guess only) for the time being.

Get the subscriptions and commission sharing adding to revenues and maybe a marginally dilutive equity raise done in a few months would then push them straight through into 2008 with a growth curve and no further concerns by shareholders about dilution.

At that time all itemized insider share positions, including restricted stock, will be stated.

Yes, I have advocated this on all of our behalf. I'm a bit of a pain in the butt and I lobbied for this to be sure I was not getting yessed, but that it really was 100% understood as mandatory to achieve full respect in the markets and be seen as legit so we can all hunker down once and for all for the big show.

I am very pleased to see it in writing. Therefore, I expect it to be listed soon with the 2006 financials coming out. Then I will ask them to instruct the Transfer Agent to divulge this data willingly and then we are really going to be smoking.

Then we'll all see there is no current dilution and then you'll know the float is beyond tacked down. Then you can make your own conclusions supporting whether or not there has been shorting activity against the stock.

I'm already confident there has been plenty of shorting, but once everyone is sure of the share structure that will just add to the overall confidence of the market in INXR and its management. Add in product releases, ad campaigns, the buzz and revenues and uplisting and the shorts will be doomed.

The best way to beat a short is have a great success story in the making. I like our positioning on this very well now.

And recent corporate governance actions enacted to fully align management with shareholder interests will be disclosed.

Good. Therefore the financials release will include all we need to see to confirm the company is putting their hat in the ring with us and we will succeed together.

Mr. Spadaro concludes, "iFinix is approaching critical mass as a product developer about to release a series of excellent products, as a company evolving from start-up to a serious market competitor and as a publicly traded equity that was once abandoned by the markets and is now a vital trading issue. We are gratified by the growing interest in iFinix and this management team is focused on restoring value to our shareholders by virtue of great products, hard work, ethical management practices and clean corporate governance policies."

Comment: Strong summation of all of the above. I asked them to take care of us, the shareholders, and perhaps we would all succeed as a result. So far, so good.

DISCLAIMER: These are all my opinions, not the company's. Do your own Due Diligence before making any investment decisions, etc. etc. etc. I don't get zippity doo dah in terms of cash, equity, massages or ego stroking from the company or any outside party. I buy my shares in the open market just like everyone else and take on the risk too. I don't post on any other website about this stock, just here. Anybody recommending this stock pick elsewhere is doing so without any direct input from me. I'm an activist shareholder who looks for distressed stocks to see if they have value that can be unlocked and we can ride the gravy train together. I don't want to know when PRs are coming out and I'm not trading on any information. I'm locked and loaded and not timing anything because I expect to make more bucks doing that than by flipping and trading the stock. Kapiche?