July 11, 2011: There are a lot of concerns regarding the current Pump & Dump conducted by convicted securities violator Larry Moore. In February, Mr. Moore, purporting (we think) to act as President of Greenfield Farms Food, Inc (GRAS), purchased the Sweet Spot Games shell (SWTP), which was recently registered for the express purpose of selling it to someone who might ordinarily have a difficult time filing a new registration statement on his own accord (i.e. Larry Moore). Mr. Moore promptly allowed the Nevada corporation to fall into default by failing to file the required list of officers.
Problem: Greenfield is not allowed to act as a corporation until this is resolved and if the SEC gets wind of it....uh oh.
Well we'll assume that eventually Mr. Moore and the company's esteemed counsel, Charles Barkley (no not THAT Charles Barkley), both of whom had ought to know better, will get around to fixing this issue at their convenience. At the same time, they will probably change the name of the registered corporation from Sweet Spot Games. The question is, what will they change it to? The company press releases, SEC filings and the CUSIP number identify the company as "Greenfield Farms Food, Inc.". However, there is no "Greenfield Farms Food, Inc. registered in neither Nevada (again, we'll assume that Sweet Spot Games will eventually be renamed) nor North Carolina, where the company purportedly began operations. We did find a "Greenfield Farms Grassfed Beef, Inc." in North Carolina which lists Mr. Barkley as its agent, but that is a markedly different name than that used by the public company with symbol GRAS. We congratulate the SEC and FINRA, tongue in cheek, for another job well done.
Problem: The public traded company does not exist.
We also note with interest that Mr. Barkley, a North Carolina attorney, acts in the company's Investor Relations capacity. We question why an attorney, who undoubtedly charges several hundreds of dollars per hour for his services, would be chosen to act in this capacity. We also find that Mr. Barkley is readily available to act as general counsel to microcap companies in exchange for shares in those companies. These companies include China Du Kang (CDKG), Revolutionary Concepts (REVO) and others, some of whom are now defunct, none of whom could be called a success. Considering Mr. Barkley's lack of attention to detail regarding the affairs of GRAS, we would be concerned if we were shareholders of any of these other companies as well.
We are particularly amused by the shell game that the insiders are playing with their stock. In an attempt to disguise the dominion the insiders hold over the suckers buying into the Pump & Dump, 22,033,787 common shares were converted into 96,623 Preferred Shares prior to the 40 for 1 forward split of the common stock. In this way, the insiders were able to disguise the virtual number of shares outstanding. Although that published number, according to the 10-Q filed on May 23, 2011, is now 323,048,523 shares, a good analyst must consider the preferred shares which are convertible at any time and can be voted at a rate of 7000 common share per preferred share. This means that there are virtually 999,409,523 shares outstanding and holding voting power. Even when the insiders sell their current common shares over the course of this Pump & Dump, they still have virtually an unlimited supply via their preferred shares and will always hold voting majority.
Problem: There's a lot more stock out there than many realize.
Finally, we have a real problem regarding the asset value. According to the May 23, 2011 10-Q, the company has an asset total of $66,166 including $35,499 in cash. After hitting a high of 58 cents today (and the suckers won't even get a Christmas card from the insiders), the stock closed @ 37 cents, giving this company a virtual market cap of about $360 million.
Problem: You name it.
We've sent this advisory to our contacts at the DTC and the SEC Enforcement Office. Considering Mr. Moore's past securities violations, we expect that this deal will be scrutinized some. But then again, knowing the regulators, maybe not.
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