Efuel EFN Corp (OTCMKTS:EFLN) Is An Undervalued Play

Today, we will be assessing Efuel EFN Corp (OTCMKTS:EFLN), a diversified company that has many investors have been talking about. We recently researched the company and found new information regarding the financial shape of the company. Furthermore, recent press releases shows that one shareholder is purchasing shares and said that he will continue acquiring shares until reaching 80% of the total outstanding shares. In this piece, we will provide all the details, but first of all have a look at the recent share price action:SourceBusiness and number of shares outstandingAccording to the information given to the OTC Markets Exchange, EFLN is headquartered in Florida and was founded in 1997. In a press release received by the market on August 25, 2017, we could get to know that the company is defined as a holding corporation with five business divisions:

• Solar and Wind Energy Division
• Real Estate, Agricultural Land Division
• Investment Divisions
• Retail, Hospitality Division
• Plans and Construction Division

Additionally, in the annual report, it is stated that "the management of these five divisions have visions, and goals to advance business operation that will grow in this economy." Regarding the amount of shares outstanding as of July 31, 2017, we could find the following information on the OTC Markets website:

• Authorized Shares: 2,500,000,000
• Outstanding Shares: 2,460,982,109
• Restricted: 1,285,727,308
• Unrestricted: 1,175,254,801
• Float: 1,175,254,801

Is this information relevant? Yes, because it may affect the way the share price moves. In this case, the float registered, which is the amount of shares owned by the public, is quite low and may explain the large amount of volatility in the share price of EFLN. Recent DevelopmentsOn July 5, 2017, the company released its quarterly report for the period ended on June 30, 2017. We believe that the most significant item is the balance sheet shown in this document. The most significant is the large amount of "Land, Minerals, and Gold deposit"; $500,000,000. Have a look at it:SourceOn the liability side, the total amount of liabilities is $3,676,000. Thus, the net assets are positive and the balance sheet is quite clean. The equity amount is $519,175,047.93. So, the net asset value per share, taking into account 2,460,982,109 shares outstanding, is $0.21. What does it mean? It means that if we liquidate the company as of today, we would receive assets, which are worth $0.21. As of August 24, 2017, the share is worth $0.0021 in the exchange. Finally, we need to note that there are also 1,000,000,000 preferred "A" shares, and 35 million preferred "B" shares, which are non convertible into common shares. Readers may also be interested in taking into account those shareholders as well. However, we would like to note that the company remarked in this document that the book value per share is $0.20.On August 8, 2017, the company released a research report, wherein it was noted that the most significant shareholders, the Euro-American Finance Network Inc. and Stefanovic family, were acquiring shares. The group wants to acquire 80% of the total outstanding shares of the firm. Anybody with a minimum knowledge of Microeconomics would conclude that if the demand for the shares increases as a result of the purchase of shares, the share may increase. It is called the law of supply and demand. Mr. Stefanovic was quoted:

" We are making tremendous progress with the company. I remain fully confident with the long term growth of the company. I am not worried with the day to day, or short term fluctuations of the stock price. I have managed a very large fund called EURO-AMERICAN FINANCE NETWORK, INC., so I understand that it takes hard work and dedication to make a company prosperous. Investors and shareholders will begin to notice the potential this company offers." Source

Finally, on August 24, 2017, the market received another research report, wherein we saw that the Stefanovic family had decided to hold one billion and six hundred million restricted shares of common stock at the fixed price of $1.00. Additionally, it was remarked that the share structure was not going to change. Finally, we could read that EFLN is in negotiations with Atlantic Surveyors and Mappers, LLC, on a potential project. The share price may move quite a bit if the company is able to achieve a deal.ConclusionEFLN may be appreciated by investors because of a few good points. First of all, the float is limited as compared to the total outstanding shares, which may increase the share price volatility. Additionally, the balance sheet seems quite clean and the net asset value per share indicated the company is extremely undervalued. Furthermore, the Stefanovic family is buying more shares, which may be appreciated by the market. Readers are encouraged to investigate a little further on the background of this family, as its strategic direction will be determined by their actions. Finally, the directors are saying that they want to grow the assets of EFLN, which may increase the share price. To sum up, keep a close eye on EFLN's announcements.We will be updating our subscribers as soon as we know more. For the latest updates on EFLN, sign up below!Image courtesy of indios gigantes via FlickrDisclosure: We have no position in EFLN and have not been compensated for this article.