01.14.10

MaxLife Fund Corp Update

Posted in All Categories, Microcap at 1:59 pm by Michael Goode

Those of you who have followed me for a bit know I have a thing for Maxlife Fund Corp (OTC BB: MXFD). Today they filed a new 10-Q (the filing was late, too). There was nothing surprising in the filing. Sales remain at $0, the company’s book value continues to shrink, and the stock barely trades. I have to admit that now I am a bit mystified by this company. When the stock price first soared back in 2007, my belief was that the company was nothing more than a promotable shell for a pump & dump stock promotion. That a stock promoter named Itamar Cohen owned almost half the shares only reinforced my belief, and evidently the writer of Forbes Informer agreed with me; he wrote the following in early 2008:

A potentially controlling 46% of the shares belong to Itamar (Eddy) Cohen of Concord, Ont. He also owns four-year-old investor relations firm Maxwell Network Group, whose Web site proclaims, “We will work to quickly and dramatically increase your stock’s marketability and liquidity.” Not always with lasting results: Shares of recent clients Royal Spring Water and Red Rock Pictures Holdings have fallen 97% off their 2007 peaks. Cohen, 46, tells FORBES he’s not promoting MaxLife and “This is not a pump and dump.”

Cohen canceled his shares in August of 2009, which would support his earlier assertion that MaxLife wasn’t a pump & dump. But Maxlife is also not a real company (it has had no consistent revenues and remains in the ‘development stage’), despite having had two years since I started watching it to develop a real business. During that time the company has seen its book value fall to $284,411 (as of the most recent 10-Q) from $557,473 (as of the January 2008 10-QSB) and its accumulated deficit has increased from $29,616 to $1,697,564. It had actual revenues for only one or two quarters and the company’s total gross profit since inception in 2006 is $26,750 (on the sale of one life settlement policy).

Maybe Maxlife Fund Corp will become a real company with real revenues. Maybe not. But no matter what, this company is a great illustration of how there are many shell companies and barely functioning companies with no revenues trading on the OTC BB exchange. While there are plenty of outright scams and barely-legal pump & dumps, ‘investors’ in the poorly functioning or shell companies can do just as poorly. Considering Maxlife Fund Corp’s continuing insane valuation (over $100m) investors in the company will likely suffer no matter what happens to the company.

Disclosure: No positions. This blog has a terms of use.

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