Nate's Food Company (NHMD)

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Fundamental and Technical Review of Nate's Foods (NHMD)

Squirt or lose your shirt defines the future prospects of Nate's Foods. The company is trying to defy logic by competing in an industry comprised of the big boys that are adept at crushing smaller companies like pancakes.

From a financial standpoint, it shouldn't be that hard. Nate's Foods currently has about $2,000 in the bank, almost enough to replace a transmission in a dodge dart. However, the companies liabilities, around $75,000, amounts to about 150,000 gallons of gas. And Nate's has lost about the same amount in the last year. The pancake question of the day is, should a company with virtually no cash and no sales be worth over $6,000,000.00. If you knew someone that owned a profitless company with a lot of debt compared to equity, would you give them $6 mil for it?

If the past is any indication of the future, unless the company can raise additional money, it has enough cash to last about 10 days. That of course doesn't take into account any more recent financial information that hasn't been released to the public.

From a technical standpoint, the company is hovering at a two month low. With technical support at $.075 per share, if NHMD drops below $.075, the next support level is around $.025 per share. Of course, that is still way above the level of .0008, in which 42,000,000 shares were issued. What that means to shareholders, using that figure, is that 42,000,000 shares were issued at about 1/112th of the current price, which means there are a whole lot of shares that are more profitable than shares changing hands at this level. If the stock goes to $.025, these cheap shares are still profitable, unlike shares trading at higher prices.

The company looks weak from a fundamental and technical standpoint, therefore, we rate NHMD a SELL.

The preceding comments are just an opinion of the author and the information provided was taken from sources that the author deemed reliable; however, the author cannot guarantee the accuracy of the information. Please perform your own research before investing.