x min read

Capital Financial Global Inc (OTCMKTS:CFGX) Aims To Be A Financial Player

Capital Financial Global Inc (OTCMKTS:CFGX) Aims To Be A Financial Player
Written by
Jarrod Wesson
Published on
November 9, 2017
Copy URL
Share on LinkedIn
Share on Reddit
Share on Twitter/X
Share on Facebook

Today, we need to talk about a company that is making herculean efforts to be appreciated by the market. It is called Capital Financial Global Inc (OTCMKTS:CFGX) and operates in the financial sector. Company LogoThe company seemed to draw the attention of the market after it issued and published the due reports for previous periods. The team made great work and seemed to upload everything that was needed in July.Readers can find the information here.As a result, a lawyer has been working for the company and noted that CFGX is in compliance with the current trading regulations. This is a great news.What was the reaction of the market?The market interest seems to be increasing, as the amount of shares exchanged recently is quite large. More than 2 billion shares were exchanged some days, which seems to be the largest amount in 4 years.Have a look at it in the following chart: 4 years chart for CFGXBusinessCapital Financial Global is focused on providing asset-backed financing and loan advisory services. According to what we could read in the company materials, CFGX is not another banking institution, it is creating alternative financing methods:

"CFGX helps organizations obtain needed liquidity by using an asset-backed approach rather than a traditional credit approach to originating new loans, buying and selling existing loans, and converting distressed collateral into cash or trade-able form. We are the preferred alternative to traditional bank financing." Source

The company was founded in 1988 in Nevada and is headquartered in Midvale, Utah.Recent DevelopmentsAs we said, the company recently uploaded a lot of due quarterly reports and annual reports. The following is a list of the documents released. Please note that issuing them represents quite a bit of efforts:

  • On July 8, 2017, the annual report for the period ended December 31, 2016 was released.
  • On July 17, 2017, the quarterly report for the period ended December 31, 2016 was released.
  • On July 22, 2017, the quarterly report for the period ended June 30, 2017 was released.

Usually, companies work like this when a transaction is going on with another player. Companies know very well that talking to other public companies or market participants is very important to have all the documents ready.Listen carefully, what happened after the release of the documents?On July 31, 2017, a lawyer released its legal opinion regarding the financial documents released by Capital Financial Global, Inc. He said that the "information constitutes adequate current public information concerning the issuer's securities and is available within the meaning of Rule 144(c)(2) under the Securities Act of 1933." This is a very good news, as market participants will be now ready to assess the company's financial performance.Once we saw that lawyers were working with the firm, we thought again that something good should be coming.On October 31, 2017, the company released an amendment to a Letter of Intent with Life Settlement Advisors, LTD., which was published earlier in the year 2017. In the amendment, we could read that the negotiations between the two companies will continue until December 31, 2017.Additionally, there will not be shop-period, which means that Life Settlement Advisors will not be able to contact other buyers or solicit offers from other parties.This is very good information for CFGX and its shareholders, as the probability of closing the deal increased.We encourage readers to remain alert as a new transaction could bring new assets, know-how as well as a new business model to CFGX. It could make the share price increase.How can you monitor the company's announcements? You can check the company's website and company's Twitter from time to time. Have a look:[embed]https://twitter.com/CFGX/status/865366561837600768[/embed]Share Stats - Low Float RunnerHave a look at the following information from the OTC Markets:Authorized Shares2,850,000,000a/o Nov 03, 2017Outstanding Shares2,176,275,316a/o Nov 03, 2017-RestrictedNot Available-UnrestrictedNot AvailableHeld at DTCNot AvailableFloat1,704,830,294a/o Jul 08, 2017SourceThe company's float is quite low, which means that the company may exhibit large share price volatility. We need to highlight this fact, as we know that many of our readers appreciate playing with volatility.ConclusionCurrently trading with a market cap of $0.4 million, CFGX is an interesting story among small caps. This seems to be an event driven opportunity more than a value play. The most significant catalyst is the acquisition of Life Settlement Advisors, thus we will try to get as much information as we can about this deal. We have CFGX on our radar and will be monitoring the company closely.We will be updating our subscribers as soon as we know more. For the latest updates on CFGX, sign up below!Image courtesy of Alan Naul via FlickrDisclosure: We have no position in CFGX and have not been compensated for this article.

Discover Hidden Gems

Don't miss the next big opportunity. Subscribe for timely alerts on potential market movers.

Recommended for You