Price of ANFD more than doubles during first day on the OTCBB
SAGINAW -- The stock price of Bay City based American Realty Funds more than doubled during its first day of public trading Wednesday.
ANFD (OTC) opened at $.35 cents a share, rose to $.90 a share and then closed at $.80 a share for a single-day profit of 228%.
Success came quickly for Joel Wilson, Co-CEO of American Realty Funds, an off-shoot of The Diversified Financial Group.
Wilson co-founded the company three years ago and late in 2010, decided the next logical step would be to build capital through a public stock offering.
The company specializes in rebuilding beat-up houses, then selling them for profit on a land sale contract.
"For our purposes there is an unlimited amount of stock that we can use. There are tons of homes in bank foreclosure right now, or have gone through foreclosure or are sitting vacant," says Wilson.
But plans to go public with the company on August 1st were put on hold, not once but twice, after Congress and President Obama struggled to put together a legitimate debt reduction plan.
"We'd rather set sail when seas are a little calmer, rather than the uncertainty there," says Wilson, who plans on taking the plunge Wednesday, regardless of the economic situation on Wall Street.
Northwood University professor and economics professor Dr. Tim Nash says the U.S. economy has taken a major hit over the last two weeks.
"We've lost two trillion dollars in equity in the New York Stock Exchange."
Dr. Nash says the United States' debt problem isn't from a lack of tax revenue, its from over-spending.
"Its the federal government that doesn't seem to be able to balance the budget," says Nash, who recently co-wrote 'Can Capitalism and the American Dream Survive?'.
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