INIX [iFinix Corporation] Due Diligence --
The following information is provided for potential investors of INIX. It is strictly my opinion and it is not meant to serve as investment advice. Please do your own due diligence.
iFinix Corporation has established itself as a transparent and viable company. Following a very unpopular reverse split decision several years ago by the former Chairman, (now deceased), the stock price crashed. However, since June 2008 the current Chairman, Doug Spadaro, and CEO, Ben Munroe, have worked diligently and honestly (although not always successfully) to bring the company back. It has been a rough roller coaster ride for the long-time holders of INIX.
After accomplishing almost all of its 2009 business goals, which included the acquisition of ProActive Futures (the major revenue source at this time), the filing of its Form 15c-211 and holding its first shareholders meeting, iFinix Corporation faced numerous setbacks in 2010.
First, the company’s much ballyhooed trading platform launch, “RealTime”, was delayed several months due to issues with the Data Center. Trying to launch over the Christmas holiday proved problematic as the personnel there did not enthusiastically attempt to resolve coding and Exchange feed issues. This resulted in a piecemeal launch of the product in January 2010. Since it initially lacked the pinksheets Level 2 information, it was not well received. Additionally, Data Center fees were $20,000 per month and subscriptions for the product were low. Some believe the economy played a part in the low subscriptions combined with the launch issues. As a result, iFinix was losing substantial money on this product. iFinix pulled the product after six months in order to cut losses.
Second, the company completed the acquisition of Beckman Holdings. This acquisition resulted in iFinix establishing iFinix Forex subdivision however the acquisition took longer than expected and required the issuance of more restricted shares than it had anticipated. It remains to be seen how well iFinix Forex will impact revenues of iFinix Corporation although it appears to be picking up.
Third, the company established another subdivision , iFinix Capital. Initially expect to be operational in July 2010, various issues delayed the launch until December 2010. iFinix is optimistic that iFinix Capital will be a significant revenue earner in the future, however, at this time that does not appear to be the case.
Lastly, iFinix Corporation initiated a forward split over the summer of 2010. It’s stated goal was to reward shareholders by doubling their shares while at the same time increasing the authorized shares needed to continue operations. The decision appears to have been a mistake, although the company stopped short of admitting such during the recent conference call. The major issue with the forward split was it resulted in the stock, INIX, being exited from the DTCC. This required that all brokers trade with paper stock certificates which caused some such as TD Ameritrade to disallow its members from buying of INIX shares. iFinix has applied for entrance to the DTCC and approval is expected soon. Once INIX is back in the DTCC, it is anticipated the brokers will allow full trading of the stock again.
Looking back, 2010 was a very tough year for iFinix Corporation. However, 2011 appears to be off to an interesting start. The company raised its authorized shares to three billion shares in order to complete several acquisitions and mergers (as stated in recent PR).
During conference call held on March 31, Mr. Munroe stated that iFinix Futures’ revenue has increased 24% so far in 2011 which is ahead of its forecasted growth.
The company announced the acquisition and 51% ownership of OakBridge Management, Inc. on 4/8/2011. This acquisition resulted in the addition of $3 million to the books of iFinix. Revenue projections resulting from this acquisition have yet to be reported.
After falling to an all-time low of .0001, the stock reached .0014 on 4/8/2011 closing at .0009.
Current share structure as of 4/8/2011:
AS: 3,000,000,000
OS: 1,100,257,274
Float: 770,000,000
In my opinion, with the current new interest in INIX and based on the way this stock has traded in the past, the short-term target will be .002 - .005 within six weeks or less. I believe the long-term target to be .03 - .06 by the end of Q1 2012. Again, this is my opinion only.
