Value Microcaps Motherboard

[jtomm]

SFNL - I actually own a little of this, but wouldn't recommend buying it because I'm concerned it's a scam. I bought a very small amount of shares to force myself to pay attention to it back when the interview first came out. But the more I look into it, it doesn't make sense. Has lots of red flags typical of a scam.

First, flashy website with absolutely no substance and no info whatsoever:

http://www.redfinnet.com/

Lots of hype and look at how they've got all the stock tied up, almost no float:

http://wallst.net/superstock/SFNL/sfnl.html

If the company was making 20-25% every 45 days, they'd be wealthy so fast it isn't funny. Money compounds so fast at that rate, there's no reason to be public. In the filings, related parties (themselves?) are allegedly lending money to the company at a low rate, so they can then go make 25% every 45 days. Makes no sense.

"The Company issues short-term notes (average 90-days) with a specific rate of return (average 4%) to acquire funds to invest into high yield activities (e.g. Container financing/investment)."

Makes no sense. Yet with a business that good, they're willing to give away more than 5% of the company to a touter? Why? If you were really making that much money, that stock will be worth tens of millions in very short order.

Another gem from the 10-Q, filed on 11-14-05:

"The Company has filed no income tax returns since inception. Management is planning to complete these during 2004."

No tax returns is bad enough, but they can't even get the year right. That's the kind of thing you see when someone is lying and can't keep their stories straight. As an investor, I might miss those dates when reading it, but no way would I miss that if I were the one writing it, and was an honest person trying to tell my truthful story.

The auditor also looks dirty to me. Nearly every company I could find from this auditor has ended up trading for less than a penny. Funny how the auditor has such bad luck.

-No disclosure of the relationship between the two Schultzes. It looks like a father and son, with the son resigning recently.

-Ceo boasts of founding Aqua Care Systems:

http://finance.yahoo.com/q?s=AQCR.PK

-The new guy, Burg, taking over for the son, "has served as a Director of a pharmaceutical company, Xechem International, Inc. and its Xechem Nigeria, Inc. subsidiary, for the past 11 years."

Here's Xechem:

http://finance.yahoo.com/q?s=XKEM.OB

He's also Sec., Treas., of another worthless public company:

http://finance.yahoo.com/q/pr?s=SCMI.PK

-Both Schultzes most recently worked at Inteletech. There's a private yahoo board about how people got scammed by this company.

Long story short, yes, it may fly on hype, but it has lots of signs typical of a scam. They could very well just be making up all of the numbers.