stock ticker: MAAX

Wanna’ Buy a Dinosaur?

Netmaximizer is an e-commerce company whose only revenues to date is their office furniture they sold in a liquidation sale. Yet, this company still has as amazing market cap of $120 million. With no money and the sale of discounted stock, Netmaximizer might be the Lemon of the year.

Company Name :  Netmaximizer.com
Stock Symbol :  MAAX
Shares Outstanding :  40.2 mil
Six Month Revenues :  $44 k
Shares in Public Float :  23 mil
Six Month Net Loss :  $1.32 mil
Market Capitalization :  $133 mil
Cash in Bank :  $242 k

Netmaximizer’s Business

According the MAAX’s filings, “The Company is an Internet marketing company that introduces customers to those who sell goods and services. The company collects fees based on visitors who reach third party sites and commissions on any purchases made by such customers. The company provides access to third party sites primarily to members of affinity groups such as churches, schools and unions.”

Aw, C’mon guys you can do better than that. That reads as if it were part of a bad business plan written in 1998. What about the many e-commerce sites that had a business that are now bankrupt? What does Netmaximizer know that no one else knows about the state of the Internet economy? More importantly, how do they ever think they can make any money brokering affiliate deals between e-commerce companies and church websites?

For the first six months of the year, the company’s only revenues ($42k) came from a liquidation sale of their assets.
StockLemon believes that this business will never return and sizable revenues let alone profit for the company. StockLemon also doubts the company’s ability to raise further capital with such an antiquated business plan.

We can not believe their website.

In their SEC Filings we read that Netmaximizer has spent over $1.6 mil in developing their website www.netmaximizer.com. Yet, it looks like fourth graders put it together. Here are some of the reasons we believe from the look of the company’s homepage it looks like they are in the business of their own stock.

1. They have their stock symbols in 9 different places on one page
2. In the prime spot on the homepage you can click for a stock quote on MAAX.
3. Right under their logo it reads “a publicly traded company”.
4. On the top right handed toolbar there are links for SEC filings and Investor Relations

Here is the catch……….Netmaximizer’s website was built by a consultant, which is owned or controlled by a major shareholder of MAAX…………sounds fishy to us.

Where does the money go?

Since inception, the company has a cumulative net loss of over $12 million, yet they have not produced any goods or services. Where can they spend this money?

$3.15 mil in General and Administrative costs

$6.163 mil in options granted for services…………….what did they do?

$748 k in amortization of debt discount
Netmaximizer is fiscally irresponsible and has a track record of overspending. The company has become burdened with debt payment for money that went in the pockets of the principles and not the shareholders.

Clients

Because MAAX does not have a business, they do not have clients. Yet, here is a short list of clients of MAAX. Having these clients as e-business partners does not warrant a business worthy of a $1 thousand market capitalization; $120 million is beyond the realm of comprehension. These clients are:

Little Rock Baptist Church
Wings of Life
Life Church
Local 204 Marketplace
First United Methodist Church
These branded affinity portals are poorly developed. They do not and will never have a business with these clients or these sites.

Financing

The company has recently retained a marginal of amount of financing in the month of May. The financing is reflective of the true value of the company. The company sold 333,333 units, comprised of one share of stock and two warrants exercisable at $1.85 for $1.50 per unit. We are curious if the financing was done with the same people who designed the million dollar website. That financing is significantly below current market price and sooner or later the price of the stock will reflect it.

Recommendation

Normally, when covering companies, we can find at least one good thing to say. There is usually one ace in the hole that the company believes that it can fall back on. Not in this case. This company has a sloppy business plan with sloppy execution and more nepotism than should be legal. We recommend an immediate SELL on this stock. This has never and will never be a real company. Management will have a lot of explaining to do when this one is all over.