Comments on: Maxlife Fund Corp: I was right (of course)

By: Michael Goode

Michael Goode — Mon, 25 Apr 2011 15:16:02 +0000

Mr. Kahan — I admit the possibility that DeLaet is not a stand-up guy. Frankly, I just don’t know him or you. And I thank you for bringing Focused Money to my attention (see http://www.albertasecurities.com/Enforcement/Enforcement%20Orders/SMYLSKI%20Robert%20Michael%20DEC%2020101507%203581165%20v1.pdf ).

By: daniel kahan

daniel kahan — Sun, 24 Apr 2011 21:35:07 +0000

Disclosure: I have no position (long or short) in MXFD (or CGP for that matter). I confess to a visceral hatred of everyone who has ever come into contact with the company except for Victor DeLaet (remember him?).

I just read this and wonder this includes me. I would also suggest you do some research into Victor DeLaet’s current dealings with the Alberta Securities Commission and the demise of the Focused Money share listing on the Frankfurt Exchange. For the record I introduced Victor to MaxLife and as a Director I persuaded MaxLife not to sue Victor after he pulled out of the publicly-announced deal (supposedly) on the advice of his lawyers.
If he had merged his LP into MXFD they both might be around today!!Usually 1 and 1 in these cases makes at least 2 and NOT 0 !!
Your friend, Daniel

By: Michael Goode

Michael Goode — Tue, 19 Apr 2011 12:44:47 +0000

The only info I have on Delaet is an email (or maybe a private message through Motley Fool CAPS) that someone claiming to be him sent me that has very little information in it. I won’t release that information (if I even still have it) unless I am subpoenaed.

By: Bill Roberts

Bill Roberts — Tue, 19 Apr 2011 12:38:47 +0000

You mentioned Victor Delaet in your last paragraph .Could you please give me any information you have on him.I am an investor with Focused Money Solutions Inc .and it appears that this investment is going bad.I have tryed to contact DeLaet and his offices without responce.There is a law firm in Winnipeg that is going to try to take over the portfolio but of course DeLaet would have to agree to that.That is if there is a portfolio to go after.The plot is thickening as it would appear that a lot of these “Life Settlement Funds” ARE THE SCAM OF ALL SCAMS.Any information would be greatly appreciated.
Regards Bill Roberts

By: Michael Goode

Michael Goode — Mon, 24 Aug 2009 01:34:40 +0000

I should of course qualify that statement: they can be good investments. The details of the settlement would determine whether an individual deal is good or bad.

By: daniel kahan

daniel kahan — Mon, 24 Aug 2009 00:34:25 +0000

Michael, I just picked up your reply and am pleased to note that you agree life settlements are in general good investments.
If any of your readers are interested in this space, they are welcome to contact me at call1dk@aol.com .

By: Michael Goode

Michael Goode — Mon, 10 Aug 2009 21:32:00 +0000

Daniel – Sorry I didn’t reply. Unfortunately my server has stopped sending me notifications when I have new comments. I have also drastically cut down on what I am writing for this blog and I don’t plan to write about Maxlife in the future (I am busy with other endeavors).

As to why the market hasn’t reacted to the share cancellation, I think the reason is obvious: there really is no market for MXFD shares, judging from the trading volume. Plus, even with 50% fewer shares, Maxlife has a >$100m market cap despite no revenues and less than $1m in book value. No matter how good the marketing, an insurance company (or investment bank, as MXFD would be more akin to if it sold on life settlements) needs significant capital. I find it hard to imagine Maxlife doing much of anything without raising a lot more capital.

Also, whether life settlements are in general good investments (they are) has no bearing on whether Maxlife is a viable company (as evidenced by a lack of capital and sales, it does not appear to be).

By: daniel kahan

daniel kahan — Sun, 09 Aug 2009 15:39:04 +0000

Michael, I assume you may be on vacation as I haven’t seen you comment yet on the Aug. 5 MXFD press release regarding the cancellation of almost 50% of the 30 m. shares by its founders. It’s a very interesting move and I am very surprised that the market hasn’t reacted to it. They also announced the introduction of an MX Trust Series, which is very similar to what Life Partners offers private investors and has the POTENTIAL to generate a significant revenue stream if properly marketed.
I look forward to your reply.

By: daniel kahan

daniel kahan — Sun, 09 Aug 2009 15:29:18 +0000

Michael, as a former director of MaxLife who was NOT involved in the JV I think there was the POTENTIAL when the deal was announced over ONE YEAR year ago to move this forward and possibly produce the results in the press release. The world was a very different place then and it would be interesting if you were compare this press release with those of GM and Lehman at that time. As an actuary I strongly believe Life Settlements are a sound and safe LONG-TERM investment provided they are based on accurate (or conservative) INDEPENDENT life expectancies and aggregated into a portfolio.

By: Michael Goode

Michael Goode — Thu, 23 Jul 2009 01:09:09 +0000

bluecollartrader — thanks for the comment. I agree that more direct payment of costs would be good. There is plenty else wrong with the US system, however (and I don’t mean the fact that it isn’t government-run); I think this article in the New Yorker deals with many of the problems well:
http://www.newyorker.com/reporting/2009/06/01/090601fa_fact_gawande

Simply put, we pay more money as a country than any other and we get worse health outcomes. Obama’s health care bill would not address the root causes of that.