Redify Group (fka RDFY)

[Potse]

TGFN...reverse split controversy.....

Whoever put together the 10-K filing for TGFN really made a bit of mess by forgetting that the 1:10 reverse split hasn't occurred yet, so the numbers/info in the filing are pretty confusing.

I made mention of the reverse split and the share structure discrepancies in the company's filings back in April (see above post). It's a problem that has caused quite a bit of confusion, and I had hoped the company would have corrected/clarified things by now or the RS and name change would have been completed by now. It is also a bit ironic/embarrassing to the company because one of the influential people at TGFN (Sam Gaer) is a former executive Vice President at FINRA.

But having said all that, TGFN still remains a pretty attractive speculative investment at these prices. I've mentioned in previous posts why I think TGFN looks rather interesting. The reverse split controversy doesn't really change my outlook on expecting higher prices here.

I like to look at my investments on a fully-diluted basis, since that gives me a better idea of what I'm buying. Since Marni/Sam Gaer have been financing the company with convertible debt (in the 1-3 cent area over the last few years), it is logical to assume they will convert the debt at some point in the future......

1) Fully-diluted, pre-split shares outstanding: around 30-35M shares.

2) Fully-diluted, post-split shares outstanding: around 3-5M shares. And the float will be roughly in the 1-1.5M share area.

As I have mentioned in previous posts, the changes that have been occurring on the website and other possible undisclosed corporate activity/involvement are quite interesting since it indicates a possible increase in corporate activity and increased attention/energy by management.

So following the reverse split, TGFN is going to be a fairly interesting low-float play. I was actually expecting to see TGFN attract promo/momentum activity after it completed the reverse split, since that is when I would expect to see increased corporate activity in the form of IR related activity. I don't know if the company is planning to hire an IR firm again, but back several years ago when the company first changed it business activity, Sam Gaer had hired a fairly impressive IR firm (I can't remember the name at the moment, but the firm was run by a female).

One of the drawbacks of some of the uncompensated promo picks is that the promos often lack quite a bit of common sense due diligence, and with a little more effort they could be written in a much more interesting/compelling fashion. Unless I missed it, this particular promo never included any information on some of the people who manage/own this stock, nor did it include the company website (albeit still not fully developed/functional).

http://www.redify.net/
http://www.flashcashdirect.com/
http://www.linkedin.com/pub/scott-lybbert/3/a61/587
http://www.linkedin.com/in/samgaer