I added some more analysis on SFXC posted on the SFXC board, reposted here for the fine fellows to comment on:
31-Dec-04 BARTLETT, TODD ALLEN
Chief Financial Officer 435,000 Acquisition (Non Open Market) at $0.0001 per share. $43
31-Dec-04 MONAHAN, TERRENCE P.
Director 250,000 Acquisition (Non Open Market) at $0.05 per share. $12,500
31-Dec-04 HANNAH, DOUGLAS J.
Director 250,000 Acquisition (Non Open Market) at $0.05 per share. $12,500
These transactions occurred before their first press release in six months, namely the announcement of their Fridge-Tape product. Their continuance of support is a positive for holders and buyers. Right now all we know is that they have orders to be fulfilled. A future press release with information on how many items have been shipped/sold, etc would help us gauge the overall potential.
The company has reported its financials ever since their acquisition of the shell company in Jan of 2003. This is due to in no small part the work of the CFO
Todd Bartlett, Treasurer and CFO.
Mr. Bartlett was CEO and Founder of Bartlett Capital Partners, Ltd. now titled Sierra Holdings, Ltd., a CFO consulting service specializing in business and strategic planning services, SEC reporting, mergers and acquisitions, start-up organization, business and financial modeling, forecasting, and turnaround consulting.
As you can see by Todd's profile, he likely initiated the shell takeover and is probably skilled in the markets, enough to know how to move SFXC forward in price rather than down. By the insider purchase in December, this helps confirm that he bought 1/2 million shares for a reason and is unlikely to let them go until he sees a potential for drop-off of positive results.
Keep in mind that the company reported essentially no earnings since its acquisition. It is likely to become even hotter when they post a quarterly in April, provided they generate revenue stream from their as of yet unrealised sales (orders aren't sales until you have the money in your hand).
Also look for the following companies to show up as news releases (taken from the most recent 10K filing):
"In the first quarter of fiscal 2004, we entered into another agreement with Consolidated Coatings Corporation which gave us exclusive rights to market and sell Magnapaint and its ancillary products to certain national chain stores throughout all of the United States, including Home Depot, Lowes, Menards, Wal-Mart, Kmart and Target, as well the exclusive right to distribute such products to the Home Shopping Network and QVC."
Since such channels already exist, it would be relatively easy to distribute press on these events. With the market rather upbeat about qvc/hsn releases, this could really send the price up dramatically if one should materialize.
But you need to keep in mind that:
"... the Company has incurred significant recurring net losses from operations since its inception. All of the Company's past due accounts payable are in default. The net loss for the three months ending September 30, 2004 from our new operations was ($91,000). As of September 30, 2004, the Company had a net equity of $82,230 and a net working capital of $75,596. Although our current assets of $289,220 for the period ended September 30, 2004 exceed our current liabilities of $213,624 for such period, this is the result of our 1st quarter equity financing activities and is not based on revenues generated from operations. Accordingly, there is still substantial doubt as to Company's ability to continue as a going concern. However, the Company's financial statements do not include any adjustments that might result from the outcome of this uncertainty. "
At this point it is unclear whether these guys are actually marketing a hot product, or simply making their stock look much prettier so they can pay off their vendors and leave town. However, based on Todd's profile, I would say it was possible they were intentionally attempting to drive down the price so that they could buy at bargain rates, which happened immediately afterwards. Quite a coincidence. Their financial release on Dec 4th contains doubt which drives the price down, and then on Dec 31st all the major holders buy back in.
Until things become clearer as to the exact nature of what's going on behind the scenes, I would carefully examine any news releases and try to verify them directly with the source.
Hopefully whatever I have distributed here to you and the board is relatively lucid. I would welcome any other analysis commentary.
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