Small cap stocks KBridge Energy Corp (OTCMKTS: BMMCF), Medifocus Inc (OTCMKTS: MDFZF) and Inscor Inc (OTCMKTS: IOGA) have been getting some attention lately in various investment newsletters and some of it is deserved as the first stock sank 35% on Friday, the second one recently released its financials (which did show a big improvement, but there is also a big catch for investors) and the third one has been the subject of a very aggressive promotional campaign. But are any of these three small caps really all that hot for investors? Here is a quick reality check:
KBridge Energy Corp (OTCMKTS: BMMCF) Sank 35% on Friday With No Recent News
Small cap KBridge Energy Corp is a development-stage company that is apparently reviewing several business opportunities. On Friday, KBridge Energy Corp sank 35% to $0.0390 for a market cap of $566,386 plus BMMCF is up 1,460% over the past year and up 680% over the past five years according to Google Finance.
What’s the Catch With KBridge Energy Corp? According to various disclosures, no transactions have occurred to mention KBridge Energy Corp in various investment newsletters. Moreover, there hasn’t really been any news from KBridge Energy Corp showing up on various financial newswires, but some of the investment newsletters mentioning the stock call it a development stage company providing consulting services in South Korea and that it operates as a broker for energy and resource related contracts. Apparently, the company was also formerly known as Blue Marble Media Corp. and changed its name to Kbridge Energy Corp in December 2011. A quick look at KBridge Energy Corp’s financials reveals revenues of $461k (2012), zero (2011) and zero (2010) for the past three years along with net net income of $206k (2012) and net losses of $125k (2011) and $80k (2010). At the end of last year, KBridge Energy Corp $72k in cash to cover $280k in current liabilities. So perhaps KBridge Energy Corp is about to come back to life with news or its about to be the subject of a stock promotions or investor relations campaign.
Medifocus Inc (OTCMKTS: MDFZF) Issued a Press Release About Its Improving Financials
Small cap Medifocus is a leader in the use of focused microwave energy to treat cancer and other tumors as it owns two fully developed technology platforms with comprehensive US and international patent protection. On Friday, Medifocus rose 8.38% to $0.194 for a market cap of $20.99 million plus MDFZF is up 61.7% over the past year and down 18.7% since December 2009 according to Google Finance.
What’s the Catch With Medifocus Inc? According to various disclosures, transactions of $4k, $5k and $10k have or will occur to mention Medifocus in various investment newsletters. Last Thursday, Medifocus announced its financial results for its first fiscal quarter of 2014 ended on June 30th. Revenue for the quarter increased 52% to CN$1,311,251 from CN$862,538 in the quarter ended March 31 while the net loss for the quarter decreased 51% to CN$1,232,221 from CN$2,492,384. It was noted that since acquiring the Prolieve® business in July 2012, Medifocus has continued to generate recurring revenue by selling the disposable catheter kits for the Prolieve® Thermodilatation System. However, investors should be aware that in early August, Medifocus announced a non-brokered private placement of up to $6,000,000 worth of units at a price of $10,000 per Unit with each unit consisting of: 1) Redeemable promissory notes which are convertible into common shares at a conversion price of $0.25 per common share (which are payable 36 months after the closing of the offering); and (2) 20,000 common share purchase warrants entitling the holder to purchase one additional common share at a price of $0.30 per common share for a period of 36 months following the completion of the offering. In other words, Medifocus may have a good income statement, but shareholders could face dilution in the near future.
Inscor Inc (OTCMKTS: IOGA): The Rosy Articles Keep Coming for a $100M Company With No Cash
Small cap Inscor specializes in educating and marketing the FIT (Financed Insurance Trust) OPEB plan to municipalities and corporations as a low-cost solution to funding retiree and other employee benefits. On Friday, Inscor fell 0.94% to $0.525 for a market cap of $109.74 million plus IOGA is down 52.3% over the past year and down 95.2% in intermittent trading over the past five years according to Google Finance.
What’s the Catch With Inscor Inc? According to various disclosures, transactions of $2k, $2.5k and $3k have or will occur to mention Inscor in various investment newsletters. Inscor itself has been rather quiet with the news, but there are no shortage of glowing or bombastic articles about the stock over the past few months, including: INSCOR, Inc. CEO Speaks at MSWS Conference After Signing Multi-Million Dollar Contract; Would Detroit Have Failed If It Used INSCOR's Financial Solutions?; INSCOR, Inc.'s CEO Generating Explosive Revenues With New Contract; INSCOR Inc.'s New Landmark Contract Worth Hundreds of Millions in Revenue; INSCOR, Inc. Secures Contract Worth an Initial $36 Million in Annual Revenue and INSCOR, Inc. CEO Heads Home to Create Opportunities for His Nation and His Company. The real news about the company seems to focus on negotiations with the Republic of Ghana's National Mass Social Welfare Scheme (MSWS) to insure the replacement of lost or stolen welfare cards issued to its members. Inscor’s financials are hardly inspiring, as its reported revenues of $37k (most recent reported quarter), $49k, $52k and $116k along with net losses of $312k (most recent reported quarter), zero, $251k and zero. At the end of June, Inscor had no cash to cover $435k in accounts payable; and yet, it ended August with a market cap of over $100 million…