Greenfield Farms Food, Inc. (OTC:GRAS), a Nevada based producer of grass-fed beef, surged yesterday after trading on minuscule volumes for a while.
GRAS closed at $0.25 for a 66.67% increase in price; even more notably, it did so with a spectacular volume of 2.8 million shares.
It should be pointed out that most of the volume was generated at much lower prices around $0.15. The 66.67% came through several 10 thousand trades. In addition, all the trading was done by noon.[BANNER]
As for what could have caused that sudden move, the most plausible reason is the press release the company issued. It claims GRAS’s grass-fed beef will be available in 80 new locations through Lowes Foods, a North Carolina based grocer.
That may be good news for GRAS, indeed. However, it may be a bit for the company to have an $80 million market cap. According to the latest available 10-Q, the company had limited assets and was operating at a loss.
Indeed, generating more revenue could help remedy the situation, but for now there is little reason to valuate GRAS at $80 million. GRAS is still a development-stage company and as such is likely to continue incurring losses for a while.
