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Network 1 Financial Group, Inc. (OTCMKTS:NTFL) Gets A Close Look

Network 1 Financial Group, Inc. (OTCMKTS:NTFL) Gets A Close Look
Written by
Jarrod Wesson
Published on
December 18, 2017
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Today, we are going to present a new business profile that surprised the team recently. It is Network 1 Financial Group, Inc. (OTCMKTS:NTFL), which has been providing Investment Banking and Broker-dealer services since 1983. It is also a broker-dealer with the SEC.

Logo of Network 1 Financial Group, Inc. OTCMKTS:NTFLThe company has drawn the attention of the market recently when its share price spiked rom below $0.05 to hit six-month-highs of $0.20.Everything occurred in a very short period of time and was accompanied by large volume, which we appreciate. More than 0.5 million shares changed hands some days.Have a look at it:

1 month chart for NTFLBusinessNetwork 1 Financial Securities Inc. is an investment bank and is introducing broker-dealer registered FINRA market maker that clears all transactions with and for customers on a fully disclosed basis by clearing Broker Legent Clearing. In addition, the company is a member of the Securities Investor Protection Corporation and the NASDAQ.Who are its clients?The company works primarily for individual investors. It provides several services directly to them:

  • Transactional business
  • Mutual fund sales
  • Business consulting fees
  • Finder's fees
  • Registered representative investment advisor fees
  • Placement agent fees for capital raises
  • Bond transactions
  • Underwriting fees

The most interesting is the work that the company does for small companies mainly operating on the NASDAQ. We had a look at the company website and found out that the company is quite successful in organizing IPOs: Image from the web of Network 1 Financial Group, Inc. OTCMKTS:NTFLWhat's our take?The fact that NTFL has been working for more than 30 years in the industry is the most significant.We believe that the company should have accumulated a lot of expertise in the sector and individuals and small start ups will be willing to collaborate with it.What's going on with the share price? - It is a Low Float RunnerHave a look at the following stats and check the amount of shares owned by the public:Authorized Shares100,000,000a/o Dec 11, 2017Outstanding Shares75,865,487a/o Dec 11, 2017-Restricted59,060,522a/o Dec 11, 2017-Unrestricted16,804,965a/o Dec 11, 2017Held at DTC8,721,515a/o Dec 11, 2017Float7,000,000a/o Apr 18, 2013Par Value0.00SourceWhat did you see?The amount of shares owned by the public, which is also called the float, is very low. Less than 10% of the total outstanding shares is owned by the market. This means that market orders could create large volatility in the share price, as the liquidity in the exchange is reduced.In other words, we believe that the order book should be usually quite empty. Order Book provided by iHub - Network 1 Financial Group, Inc. OTCMKTS:NTFLWe need to note this feature, as there are readers who appreciate volatility plays in the OTC Universe. This is a new micro cap profile to study closely.Social Media - iHub ForumThe company had not provided new information about it business operations, thus new information should come from outside sources. We found that the activity in the social media has increased quite a bit recently.The following is an image of the iHub forum: iHubForum - Network 1 Financial Group, Inc. OTCMKTS:NTFLPlease note that many market participants are expecting good developments by the company. These reactions may have created some expectations in the market, which may have commenced to acquire shares.What was the information noted in the iHub Forum?We checked the comments and found out that market participants are expecting new developments from a new deal with Turner Valley Oil and Gas, Inc. that was announced on April 20, 2017. Network 1 Financial Securities was said to be the investment banker organizing a $25 million capital placement for Turner Valley.We believe that if the deal finally works out, NTFL will be able to collect fees, which could push up the share price.However, we encourage readers to wait until the capital placement is confirmed by the company. A play in this company at this point in time is quite speculative.ConclusionCurrently trading with a market cap of $14 million, NTFL is an interesting story among small caps. It is quite difficult to say where the share price will go from now and whether the volatility will continue. The company needs to release new information confirming new developments. Be alert. If the company communicates something, the share price could move again violently.We will be updating our subscribers as soon as we know more. For the latest updates on NTFL, sign up below!Disclosure: We have no position in NTFL and have not been compensated for this article.Image courtesy of Dave Center via Flickr

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