Georgi Kamburov

Nate's Foods Co (OTCMKTS:NHMD) Excites Investors Once More

by Georgi Kamburov January 23, 2015

Back in November 2014 the stock of Nate’s Food Co (OTCMKTS:NHMD, NHMD message board) made a rather spectacular run up the chart on a significant support from investors. In just a couple of sessions the ticker jumped from around 3 cents per share to a high of over 18 cents. Traders certainly had a reason to be optimistic – on November 17 the company not only launched a limited amount of its pancake batter in a can but they also reported selling almost all of the available units in less than 20 minutes. The company has stated that as of November 30 they had sold around 11 thousand cans for $31 thousand.

Since then the company has published quite a few other impressive PRs. On December 4 they announced a quarterly dividend ranging between $0.025 and $0.10 per can, on January 14 three new flavors of their Pancake and Waffle batter were revealed, this Wednesday the buy back of over 22 million common shares was disclosed in an 8-K filing while yesterday NHMD announced that they have begun the development of a new production facility.

This latest PR caused investors to rush towards the stock and the number of shares exchanged throughout the session surpassed 4.3 million. The buying pressure pushed NHMD 20% higher to a close at $0.12. Wait a minute, back in November the stock was sitting much higher. Having in mind the impressive list of optimistic press releases what could have caused the stock to slide downwards. Well, it turns out that there are quite a few red flags around the company.

The financial report filed just a couple of days ago showed that for the quarter ending November 30 NHMD achieved the following results:

• $40 thousand cash and total assets!!!
• $124 thousand total liabilities
• $749 revenues
• $598 thousand net loss

That is right, NHMD actually finished the quarter with less than a $1000 in revenue. It turned out that $30 thousand worth of the cans sold in November were purchased by Torrent Energy, a company owned by WB Partners. WB Parners are so connected with Nate’s that there is even a question about them on NHMD’s FAQ page on their official website. The proceeds from the sale were listed as deferred revenue. 

In our previous articles we also warned you that back in 2007 when the company was still operating under its previous name and ticker it sold a total of 42 million shares priced at just $0.0008. If just a portion of that amount finds its way to the the open market the consequences could be devastating.

Back in October, last year, NHMD was targeted by paid pumpers and as of yesterday they are being pumped once more. Among the involved newsletters HSP Team received the biggest compensation of $15 thousand.

On January 30 NHMD will host a Q&A event which means that the excitement around the stock should remain high. If the company wants to keep its gains this time around they will need to show concrete results and most importantly a finalized purchase order for their products. Until then approach the ticker with caution and only after doing extensive due diligence. 

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