Baron Capital Enterprise Inc (BCAP)

[JDs Stocks]

TOFS - Overview

Company Information

News

Pinksheets

TOFS is a speculative RM play.

Currently incorporated in Florida as 247MGI, Inc., TOFS has been a non-reporting public shell for the last several years. It has had several iterations since its inception as Thrift Management, Inc. in 1991. It has also had two share restructurings via RS (decreased by 1 for 10 split in 2003, and decreased by 1 for 100 split in 2006).

Matthew P. Dwyer, CEO of 247MGI, Inc., has been preparing TOFS for the RM process the past several months. The company has reduced the AS, settled liabilities, and filed the necessary financial reports and other documentation to bring the company current. The company is also working on “name change” documents to be filed with the State of Florida and FINRA to prevent any “Chill” on trading. The company’s “Yield” status on pinksheets should be updated to “PK” or “Current” next week, at which time the company should reduce the AS further to 1,600,000,000 shares. The RM announcement should be expected sometime after that. So it appears TOFS is presently poised to reverse merge with an as yet unknown private company apparently in a multi-billion dollar industry according to their PRs. Today, along with the beginning of next week, will provide excellent entry/add points before the RM completion is announced.

There has been major speculation on iHub regarding which private company will RM with TOFS. Personally I have no concrete idea. The two most prevalent candidates make sense; however, I only offer the following insight as speculation; not fact! The first possibility is HealthyLife Sciences, LLC the creators of healthé trim. Now this makes sense for two reasons. One, according to the PRs there will be no change in control, and Matthew P. Dwyer just so happens to also be the Founder and CEO of HealthyLife Sciences, LLC. Two, the PRs reference TOFS merging with a private company in a multi-billion dollar industry, and as a certified “health nut” I can attest that the supplement industry is certainly a multi-billion dollar industry. The second potential candidate is Fundtech Solutions, LLC, which Matthew P. Dwyer has been affiliated with by his own admission by virtue of an email received by MasonTrend. MasonTrend shared this correspondence via TOFS post # 45972. Thanks for sharing MasonTrend! Of course, there is a possibility that the private company turns out to be a completely different company then the two aforementioned. While it is fun to guess, remember that it is all speculation at this point.

The only reservation that I have about this stock is its share structure. Although the company has recently reduced the AS and plans to reduce it further once pinksheets is updated, the Float still remains 902,022,615 shares. The company has stated in several PRs that it is not presently considering a RS; however, the Float will need to be addressed at some point. The company has hinted that they may consider reducing the OS in the future. The current share structure is the only caveat I have about taking a position in TOFS.

Technical Analysis

TOFS has been adhering to a Bullish Price Channel on the daily chart for the past several months (1). It has also experienced a substantial increase in volume the past two and a half weeks (1).


A downtrend has emerged over the past two months (2). There has been much speculation as to why; however, I believe it is in direct correlation to the company’s prior announcement via PR (June 15, 2011) to complete its pending merger just after the 4th of July 2011. Notice that the SP started to climb on July 5th (2a). July 19th appeared to be the market’s breaking point; the RM had not been completed and buying pressure waned soon after (2b). The MACD has also been on a downward slant; although, it finally appears that it will cross up through the signal line over the course of several trading sessions (2). The RSI is sitting right below 50 (2).


The recent downtrend has created a Symmetrical Triangle within the Bullish Price Trend (3). Generally Symmetrical Triangles are indicative of a continuation pattern; although, they also represent market indecision. Since this stock is receiving a lot of attention, I speculate the SP will continue to rise. Perhaps it hits .0016 even without news. That would match the upper trend line, and recent resistance (3). Notice that the ADX signals no strong trend because it is below 20. The -DI favors a slight negative trend for now; however, the SP can break either way since there is no strong trend in place (3).


Lastly, the Bollinger Bands are really starting to pinch here, which usually results in a breakout in either direction (4a). Notice what happened the last time the Bollies tightened (4b). There has been some concern regarding the Accumulation/Distribution line since it has been in a downtrend even though the stock has had significant volume. This can represent selling, dilution, shorting, or a combination of all three. Fortunately the A/D line recently pierced its downward slope indicating accumulation by the market again (4). The OBV on the other hand contradicts the A/D line, and has remained in a positive uptrend for quite some time (4).


FIRNA Regulation SHO for TOFS the past five days

Date|Symbol|ShortVolume|Short Exempt Volume|TotalVolume|Market
20110908|TOFS|13331474|0|27529177|O
20110907|TOFS|35337330|0|70332590|O
20110906|TOFS|06036462|0|21841406|O
20110902|TOFS|07879130|0|13849219|O
20110901|TOFS|05940000|0|15054500|O
Total 5 Day (SV) 68,524,396

TOFS also seems to have garnered a tremendous amount of attention on iHub the past several days. TOFS has been in the top ten Most Read Boards the past two days.

The following screenshot was taken at 4:15pm yesterday.

The following screenshot was taken at 11:15pm yesterday.


My conclusion: Although TOFS is a speculative RM play, I feel it is worth the risk given its potential to run several hundred to several thousand percent from its current price @ .0011.

J.D.