the OTC .today

Wednesday, November 9, 2011
Today's PUMPs & dumpS

Don't Let UFood Have UFooled

At first glance, recently commenced Pump & Dump subject, UFood Restaurant Group (UFFC), one of the few real businesses out there that is being PnDed, looks like impressive, what with 4 company owned restaurants, 4 franchised out locations and two more to come.  Upon closer analysis, however, one can see why the insiders are resorting to a Pump & Dump in order to cash up.  This thing is a sinkhole.

Since going public at the beginning of 2008 via a reverse merger, UFFC's share price has dived 95%, as the stock has been diluted and preferred shares issued in lieu of millions of dollars in debt. At last report, approximately 40 million shares of
common stock were issued and outstanding, however conversion of the Series "A" preferred stock alone, doubles that number.  In fact, we wouldn't be surprised if this Pump & Dump was designed to relieve debt holders of some of their stock in order to recover at least some loan principle. We'd expect that reported number of shares issued and outstanding to jump substantially with the filing of the company's next 10-Q.

With a virtual 80 millions shares out there, UFFC is currently boasting a market cap of over $8 million.  Even though the company has $1.2 million in the bank, it owes about $2.5 million and experiences operating loses at the rate of $4 million annually.  These are not exactly numbers that give us a warm and fuzzy feeling.  In fact, we're not sure how the company can survive with this burn rate and it certainly can't without further dilution of its stock.

Most disconcerting about UFFC's precarious financial situation, is its inability to pay out dividends to its preferred shareholders.  These creditors could eventually bring the hammer down and force the company to grant even more power, shares and other concessions in order to stave off bankruptcy.  Just say no to UFFC.

Tout, BedfordReport.com continues to pound the table on Stevia Corp. (STEV).  We'll remind you that the last time they worked a Pump & Dump so hard was for Nyxio, Inc (NYXO), which is now down 70%.

As of today's opening, the SEC has suspended trading in the following issues: RMDT, RKWL, SMRK, SDGM, STAX, SCLL, SUFH, ROVC, RSGC, RFDS, SSVG, SCEY, SNMO, SBET, SWME

Since Tuesday's close: 

StockHaven.com has been promoting FCTOA in conjunction with a new Pump & Dump campaign.

PennyStocksFinder.com and at least 3 other paid touts have been promoting IFCR in conjunction with a new, but repeat Pump & Dump campaign.

XtremePicks.com and at least 1 other paid tout have been promoting BRYN in conjunction with a new, but repeat Pump & Dump campaign.

PennyStocksNewsletter.info has been promoting GEFI in conjunction with an ongoing promotion.

StockExploder.com and at least 3 other paid touts have been promoting GCLL in conjunction with an ongoing, long term Pump & Dump campaign. 

TopStockAnalysts.com has been promoting LOGL in conjunction with an ongoing, long term Pump & Dump campaign.

PennyStockAlley.com and at least 9 other paid touts have been promoting CSOC in conjunction with an ongoing Pump & Dump campaign. 

OurHotStockPicks.com and at least 1 other paid tout have been promoting BZYR in conjunction with an ongoing, Pump & Dump campaign.

StocksGoneWild.com and at least 1 other paid tout have been promoting UFFC in conjunction with an ongoing, Pump & Dump campaign.

BedfordReport.com and at least 1 other paid tout have been promoting STEV in conjunction with an ongoing Pump & Dump campaign. 

StockStars.net has been promoting LSTG in conjunction with an ongoing, long term Pump & Dump campaign.