Update: ParaFin Corporation - Rewards For Failure?

The results are in – and ParaFin Corporation (OTCBB: PFNC) continues to show no hint of a pulse.  The Company recently filed its Form 10-Q report for the quarter ended December 31, 2006, and – no surprise here – ParaFin has no money and revenues.  That sad fact is not particularly newsworthy since ParaFin and its predecessors have consistently failed to develop any viable business.  Over the years the Company has hawked “900” exchange telephone numbers, Russian oil, ergonomic chairs, and Paraguayan hydrocarbons.  The results have been consistent; plenty of talk, but no discernible performance.  See, Update: Parafin Corporation – Thai-ed Up By A Coup?

The Company may have no cash, but it never seems to run out of two key commodities – excuses and shares.  Most recently, ParaFin claimed that a military coup in Thailand had interfered with the Company’s plan to resell Russian crude oil. 

That coup did not interfere with the Company’s ability to reward a select few individuals.  The Company has operated for over 28 years – and has yet to report a dollar of revenues.  Despite that lengthy record of non-achievement, ParaFin has managed to spend plenty of money, almost $43 million since 1978.  In fact, between October 1, 2006 and December 31, 2006 – with no funds in its coffers - ParaFin paid over 1.2 million in consulting and management fees. 

Equally mind-boggling is the fact that public investors continue to purchase ParaFin stock - and that those shares recently traded at more than 12 cents. 

Since the Company has no funds, it rewards its “consultants” and “management” with stock – registered shares that can be sold immediately.  On February 23, 2007, the same day it filed its Form 10-Q for the December 2006 quarter, ParaFin filed a Form S-8 Registration Statement, registering approximately 135 million shares to be distributed to directors, consultants and employees under a pair of stock incentive plans.  Since there appear to be plenty of individuals willing to buy ParaFin stock, the individuals who receive those shares are not likely to have much difficulty converting their certificates into cash - putting them in a far better position than the Company for which they consult or work.

The Company did not identify the directors, employees and consultants who would be receiving the shares. 

Considering ParaFin’s dismal track record it is easy to understand why they would want to remain anonymous.

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