When “Internet Stock Review”, Wall Street’s oldest newsletter covering Internet stocks, announced it would provide coverage and a comprehensive report on Max Sound Corporation (OTC:MAXD), MAXD stock went straight up 18%, closing yesterday’s session at an all-time high of $0.65 per share, shifting in excess of 176 thousand common shares.
As it claims, MAXD specializes in developing high-definition (HD) solutions based on its proprietary Max Sound technology for sound recording and playback. The company pretends to be offering the so called Max Sound HD Audio Process capable of transforming any audio file into high definition without the help of any additional encoding and/or decoding processes.
So far, so good. However, one detail remains unclear. If MAXD really has a final product or service available to its customers, then why has it failed to generate a single buck since the beginning of 2011? Because, as seen in MAXD’s financials, the last time the company actually had any revenue was the final quarter of 2010 when it made a small “fortune” of $1,000, which is pretty minuscule considering that we are all currently experiencing a boom of HD technologies.
Another interesting point in MAXD’s financial records is the lack of expenses on research and development. The total amount of operating expenses incurred throughout Q2 of 2011 equals almost $1 million, the majority of which is due to various endorsement and consulting fees.
Although the current situation might not seem as bright as MAXD supporters would like it to be, the company might soon take all investors by surprise by coming up with a commercially viable alternative.
