quote:
Originally posted by Fallstaff:
Volume picking up and MMs quick on the BID. Keep your eyes peeled. She is going to run high today!
BOUNCING OFF THE BOTTOM. LOVE THE GAME.
------------------
DIANA
quote:
Originally posted by realityinc21:
BOUNCING OFF THE BOTTOM. LOVE THE GAME.
Diana, nice to see you playing today. GLTA
FS
------------------
GLTA
Raja
Always do your DD before Investing or Daytrading
quote:
Originally posted by rajarammx:
GFYF Up 0.0011 - 71% & still continuing....
MMs stacking up on the BID again at 0024!
quote:
Originally posted by Malloy:
Yep...was waiting for this one to pop....Should go back to mid 30.
------------------
Dear Lord, Please help me to be the man my dog thinks i am.
GFY Foods, Inc. in Negotiations for Willowbrook Frullati Cafe
PR Newswire - May 04, 2004 11:22
BUFFALO GROVE, Ill., May 4, 2004 /PRNewswire-FirstCall via COMTEX/ -- GFY Foods, Inc. (OTC Bulletin Board: GFYF) announced today that it is in negotiations to acquire a Frullati cafe and bakery in the Willowbrook Athletic Club, in Willowbrook, Illinois.
"This is a beautiful club, and a great looking store," said Ed Schwalb, President of GFY Foods, Inc. "We are negotiating with the cafe owners right now, and are hoping for a solid contract within a day or two. It is the company's intention that the cafe's owners will stay onboard for a few months to ease the transition phase. After that time, our own management team will take over, implementing GFY Foods' ideals and growth strategies."
"Our corporate growth is on track. It is planned that each new acquisition will retain, for a small period, the original owners. That is valuable in getting our staff and management acclimated and trained for each new property. Otherwise, the company may grow beyond its capacity to manage new sites."
The company is currently operational regionally in the Buffalo Grove, Illinois and Elkhart, Indiana areas. It has plans to become national by rolling out additional locations in key market segments and working closely with the Kahala Corporation. It hopes to open 8-10 new locations by the end of calendar 2004, in metropolitan areas where there is minimal competition and significant upside to build a brand and establish the company nationally. And, to continue to aggressively private label new/existing products that may integrate well with its existing line up of products and services.
About GFY Foods, Inc.
Founded in the spring of 2003 by Ed Schwalb, GFY Foods is operating restaurant locations in Buffalo Grove, Illinois and Elkhart, Indiana. The company believes in the importance of providing high quality foods at affordable prices that are healthy alternatives to food that is now being sold to the American public. For more information please contact Ed Schwalb, President, 847.353.7554, 601 Deerfield Parkway, Buffalo Grove, IL 60089. ares@bwwonline.com
This release contains forward-looking statements within the meaning of the Securities Litigation Reform Act. The statements reflect the company's current views with respect to future events that involve risks and uncertainties including uncertainties related to successful negotiations with other parties, closing of transactions, capital availability, operational and other risks, uncertainties and factors described from time to time in the company's publicly available SEC reports. In light of these risks and uncertainties, the forward-looking events described in this release might not occur.
SOURCE GFY Foods, Inc.
Ed Schwalb, President of GFY Foods, +1-847-353-7554,
ares@bwwonline.com
(GFYF)
Copyright (C) 2004 PR Newswire. All rights reserved.
FS
------------------
GLTA
Raja
Always do your DD before Investing or Daytrading
[This message has been edited by rajarammx (edited May 04, 2004).]
[This message has been edited by rajarammx (edited May 04, 2004).]
quote:
Originally posted by Lutalo:
What I want to know is what sucker bought it at .0031 ... that seems just a TAD bit on the risky side dont you think????
LOL
THATS FUNNY
LOL
IT MUST HAVE SOMEONE WHO DIDN'T DO THEIR HOMEWORK
quote:
Originally posted by fjean:
I'LL BE IT WAS A DAY TRADER WANNABEE WHO WANTED TO COME ALONG FOR THE RIDE
SORRY ABOUT THAT FOLKS
I DIDN'T MEAN TO POST THAT
Lets get hungry again and drive the stock up for couple of weeks - I am getting a sunburn from RED numbers
FS
quote:
Originally posted by TradingWizard:
Now I feel much better...
GFYF US U
BID + 0.002
ASK 0.0021
ACTUAL 0.0021
CHANGE -0.0002
VOLUME 120,276,648 (subject to change..)
the MMs are stacking up the BID at 002 and 0021 ASK is caving
quote:
Originally posted by gone to the dogs:
How easy has it been to sell on this run? I am in at .005 so I'm not going anywhere but just curious as to how liquid this thing is.
Not really very easy...I tried to sell at 0.0023 & then at 0.0019...Got partially filled at 0.0019 (50k shares)....holding the rest 170k for another run...seem to have support at 0.0020....
------------------
GLTA
Raja
Always do your DD before Investing or Daytrading
quote:
Originally posted by Nostradamus:
Can anyone confirm? ... price is rising nevertheless
Not sure, but it just shot through 18,19 and 20 with no resistence! Watched HUGE (8,9 million) buys all day at 0019 and 0018!
[This message has been edited by Fallstaff (edited May 05, 2004).]
GFY Foods, Inc. Prepares to Introduce a New Health Product to Its Cafes
BUFFALO GROVE, Ill., May 6, 2004 /PRNewswire-FirstCall via COMTEX/ --
GFY Foods, Inc. (OTC Bulletin Board: GFYF) announced today that it is preparing to introduce an outside, private label functional health juice to its cafes.
"This is amazing, said Ed Schwalb, President of GFY Foods, Inc. "I don't know of any other cafe that provides this. This drink is great tasting, healthy and versatile. We can sell it in the full sized bottle, in single servings, or mixed in existing drink recipes. I am very excited that we can offer such an incredible product."
"Also, we are providing the Elkhart, Indiana store with new products to sell. That will match what has been done in the Buffalo Grove cafe. It will begin to market protein powders, vitamins and health supplements. These are not private label products, but will be offered at very competitive prices. They have all done well in Buffalo Grove. I feel that we can drive sales with these additions."
"Another great sales tool will be the addition of an espresso machine to Elkhart. I have found that there are no major coffee cafes in the immediate area. We will have very little competition in a market that wants the product."
GFY Foods, Inc. is waiting on final approval to release the name of the private label beverage, as well as guidance as to how it can market the juice in its cafes. It has plan that all GFY Foods owned properties will sell the juice.
The company is currently operational regionally in the Buffalo Grove, Illinois and Elkhart Indiana areas. It has plans to become national by rolling out additional locations in key market segments and working closely with the Kahala Corporation. It hopes to open 8-10 new locations by the end of calendar 2004, in metropolitan areas where there is minimal competition and significant upside to build a brand and establish the company nationally. And, to continue to aggressively private label new/existing products that may integrate well with its existing line up of products and services.
About GFY Foods, Inc.
Founded in the spring of 2003 by Ed Schwalb -- GFY Foods is operating restaurant locations in Buffalo Grove, Illinois and Elkhart, Indiana. The company believes in the importance of providing high quality foods at affordable prices that are healthy alternatives to food that is now being sold to the American public. For more information please contact Ed Schwalb, President, 847.353.7554, 601 Deerfield Parkway, Buffalo Grove, IL 60089. ares@bwwonline.com
This release contains forward-looking statements within the meaning of the Securities Litigation Reform Act. The statements reflect the company's current views with respect to future events that involve risks and uncertainties including uncertainties related to successful negotiations with other parties, closing of transactions, capital availability, operational and other risks, uncertainties and factors described from time to time in the company's publicly available SEC reports. In light of these risks and uncertainties, the forward-looking events described in this release might not occur.
SOURCE GFY Foods, Inc.
FS
2004-05-06 10:15:19
GFY Foods, Inc. Prepares to Introduce a New Health Product to Its Cafes
***
BUFFALO GROVE, Ill., May 6 /PRNewswire-FirstCall/ -- GFY Foods, Inc. (OTC Bulletin Board: GFYF) announced today that it is preparing to introduce an outside, private label functional health juice to its cafes. "This is amazing, said Ed Schwalb, President of GFY Foods, Inc. "I don't know of any other cafe that provides this. This drink is great tasting, healthy and versatile. We can sell it in the full sized bottle, in single servings, or mixed in existing drink recipes. I am very excited that we can offer such an incredible product." "Also, we are providing the Elkhart, Indiana store with new products to sell. That will match what has been done in the Buffalo Grove cafe. It will begin to market protein powders, vitamins and health supplements. These are not private label products, but will be offered at very competitive prices. They have all done well in Buffalo Grove. I feel that we can drive sales with these additions." "Another great sales tool will be the addition of an espresso machine to Elkhart. I have found that there are no major coffee cafes in the immediate area. We will have very little competition in a market that wants the product." GFY Foods, Inc. is waiting on final approval to release the name of the private label beverage, as well as guidance as to how it can market the juice in its cafes. It has plan that all GFY Foods owned properties will sell the juice. The company is currently operational regionally in the Buffalo Grove, Illinois and Elkhart Indiana areas. It has plans to become national by rolling out additional locations in key market segments and working closely with the Kahala Corporation. It hopes to open 8-10 new locations by the end of calendar 2004, in metropolitan areas where there is minimal competition and significant upside to build a brand and establish the company nationally. And, to continue to aggressively private label new/existing products that may integrate well with its existing line up of products and services. About GFY Foods, Inc. Founded in the spring of 2003 by Ed Schwalb -- GFY Foods is operating restaurant locations in Buffalo Grove, Illinois and Elkhart, Indiana. The company believes in the importance of providing high quality foods at affordable prices that are healthy alternatives to food that is now being sold to the American public. For more information please contact Ed Schwalb, President, 847.353.7554, 601 Deerfield Parkway, Buffalo Grove, IL 60089. ares@bwwonline.com This release contains forward-looking statements within the meaning of the Securities Litigation Reform Act. The statements reflect the company's current views with respect to future events that involve risks and uncertainties including uncertainties related to successful negotiations with other parties, closing of transactions, capital availability, operational and other risks, uncertainties and factors described from time to time in the company's publicly available SEC reports. In light of these risks and uncertainties, the forward-looking events described in this release might not occur. SOURCE GFY Foods, Inc. -0- 05/06/2004 /CONTACT: Ed Schwalb, President, +1-847-353-7554, or ares@bwwonline.com / (GFYF) CO: GFY Foods, Inc. ST: Utah, Indiana, Illinois IN: FOD RST OTC SU: PDT
A buy went through lower then the ask price.
quote:
Originally posted by bauer:
The PR didn't do much. I was short on this stock..
It was pretty fluffy in my opinion. With all the action that is going on with this stock they should be releasing some 'serious' info in the near term.
FS
12:21:51 161000 0.0018 - OTCBB
12:21:51 161000 0.0019 - OTCBB
12:21:45 5000000 0.002 + OTCBB
12:21:24 5000000 0.002 + OTCBB
12:19:51 5000 0.0018 - OTCBB
12:19:51 5000 0.0019 + OTCBB
12:19:48 166000 0.0018 - OTCBB
12:19:48 995000 0.0019 + OTCBB
Any insights on this level 2?
[This message has been edited by bauer (edited May 06, 2004).]
quote:
Originally posted by bauer:
now JEFF joined in...
I'm not sure they know where this is going. I think they would like to drive it down but they are seeing that people are making a lot of money buying in at 0018 and selling at 0019/002. I haven't had one of my buys go through at 0018 even though I see the ask there for 10 minutes. Either way, I think the saturation of stock may be over. RSI on the 6 month chart finally coming out of the basement!
quote:
Originally posted by TradingWizard:
Where is everybody? I am not seeing shares being trade...is trading halted.
10 mil traded, not halted!
------------------
GLTA
Raja
Always do your DD before Investing or Daytrading
Then when it hits that LOW again BUY BUY BUY !!!
This same thing happened not too long ago. And I lost a lot of money because I bought HIGH got scared THEN sold LOW. I was STUPID.
You can make money on this stock by JUST waiting until its very LOW say .0008
On May 7, 2004, the Registrant issued 2.5 billion shares of commonstock to its president, Edward Schwalb. Under the terms of the Registrant'semployment agreement with Mr. Schwalb, Mr. Schwalb is authorized to maintain anownership percentage of seventy percent (70%) of the outstanding shares of theRegistrant. After this stock issuance, Mr. Schwalb owns 3,782,250,000 shares, or62.77%, of the Registrant's 6,025,265,161 shares outstanding.
On May 5, 2004, the aforementioned employment agreement with Mr.Schwalb was amended to include a monthly salary of $25,000 per month.Additionally, Mr. Schwalb is due an acquisition fee of $70,000 for eachacquisition that he initiates and the Registrant closes during the term of theemployment agreement
Source: http://biz.yahoo.com/e/040512/gfyf.ob8-k.html
GFY Foods, Inc. Finalizes Acquisition of the Willowbrook Frullati Cafe and Bakery
BUFFALO GROVE, Ill., May 13, 2004 /PRNewswire-FirstCall via COMTEX/ --
GFY Foods, Inc. (OTC Bulletin Board: GFYF) announced today that it has finalized the acquisition of the Frullati Cafe and Bakery franchise location in the Willowbrook Athletic Club in Willowbrook, IL. This location will become a wholly owned subsidiary of GFY Foods, Inc. and will maintain its primary location in the Willowbrook Athletic Club.
"This asset makes a great deal of sense to us, as it continues with our goal of acquiring Frullati franchises. Also, and importantly, it is located in a health club -- a venue with which we are familiar. This allows us to put in place an operational plan similar to the other locations, and can save money by combining some of our operations, said Ed Schwalb, President of GFY Foods, Inc. "Additionally the current management team has agreed so stay onboard for 90 days and help us to transition operations, to ensure there is no disruption in revenue and customer satisfaction."
The company now has three active locations regionally. It has plans to grow nationally by rolling out additional locations in key market segments and to work closely with the Kahala Corporation to acquire new restaurants. It hopes to open 8-10 new locations by the end of calendar 2004, in metropolitan areas where there is minimal competition and significant upside to build a brand and establish the company nationally.
quote:
Originally posted by BobTheSlob:
I'll go around buying up Frulattis for $25000 a month! That seems pretty excessive to me for a company with their market cap and revenue.
quote:
Originally posted by RichardC:
I'm out at .0012. I don't feel comfortable with the way this company is being run. The more DD I do on this one the less attractive it looks to me. Good luck to everyone still hangin' on!
Hey Richard,
What did you find wrong with this company? Would appreciate your comments.
[This message has been edited by TradingWizard (edited May 19, 2004).]
quote:
Originally posted by Nostradamus:
Hey Richard,
What did you find wrong with this company? Would appreciate your comments.
Too many rumors flying around. I however have no proof of anything, nor do I really trust any rumor I see online. But it's enough to push me away. Rumors aside, everything looks good on this one, it looks like a possible breakout soon. I hope this thing really does fly, but I would just rather sit on the side lines and watch. Good luck!
[This message has been edited by RichardC (edited May 19, 2004).]
quote:
Originally posted by RichardC:
Too many rumors flying around. I however have no proof of anything, nor do I really trust any rumor I see online. But it's enough to push me away. Rumors aside, everything looks good on this one, it looks like a possible breakout soon. I hope this thing really does fly, but I would just rather sit on the side lines and watch. Good luck![This message has been edited by RichardC (edited May 19, 2004).]
Fair enough ... I appreciate your comment.
quote:
Originally posted by microproty:
Is this the bottom? Im in at .0011 and now .0009.... How low can this stock go? The chart shows this stock jumps big on PR's.. I will continue to average down, but I am ready for our PR.. Please let me know what you all think about this stock (good and bad)..
I'm finally back in 250K strong @ 0.0010 today. If keeps sinking below the 0.001 mark, just BUY more and make sure you have a SELL order in. YOU JUST NEVER KNOW WHAT THE FUTURE HOLDS IN SUB-PENNYLAND. lIKE NIKE SAYS "JUST DO IT"
------------------
'Alone we can do so little; together we can do so much.' - Helen Keller
quote:
Originally posted by Mainetrader:
I bought this around .005 a couple of months ago and sold at a big loss, I'm hoping it can earn my money back. I'll be putting in a buy order for this baby at .0001 to .0005, then its going to be my next QBID. :-)
I DON'T THINK WE'RE GOING DOWN THAT FAR
On May 7, 2004, the Registrant issued 2.5 billion shares of commonstock to its president, Edward Schwalb. Under the terms of the Registrant'semployment agreement with Mr. Schwalb, Mr. Schwalb is authorized to maintain anownership percentage of seventy percent (70%) of the outstanding shares of theRegistrant. After this stock issuance, Mr. Schwalb owns 3,782,250,000 shares, or 62.77%, of the Registrant's 6,025,265,161 shares outstanding.
On May 5, 2004, the aforementioned employment agreement with Mr.Schwalb was amended to include a monthly salary of $25,000 per month.Additionally, Mr. Schwalb is due an acquisition fee of $70,000 for each acquisition that he initiates and the Registrant closes during the term of the employment agreement
Source: http://biz.yahoo.com/e/040512/gfyf.ob8-k.html
6,025,265,161 O/S, Ed owns 3,782,250,000, someone posted Float as 97MM, doesn't seem accurate to me. He also gets $25K per month and a $70K aquisitions fee. He's the only one going to make thousands off of this stock.
Doesn't mean it isn't worth playing. I have a modest number of free shares and might purchase more, and hope for another run. Seems to react well to Ed's aquisitions, and we know he likes getting $70K a shot, so it might be in the cards.
[This message has been edited by mainstay (edited May 24, 2004).]
quote:
Originally posted by Mainetrader:
I bought this around .005 a couple of months ago and sold at a big loss, I'm hoping it can earn my money back. I'll be putting in a buy order for this baby at .0001 to .0005, then its going to be my next QBID. :-)
------------------
'Alone we can do so little; together we can do so much.' - Helen Keller
...and on the other hand the second part of this report may be positive! We don't know, so it may go up!
------------------
'Alone we can do so little; together we can do so much.' - Helen Keller
quote:
Originally posted by TradingWizard:
[QUOTE]Originally posted by Mainetrader:
[b]I bought this around .005 a couple of months ago and sold at a big loss, I'm hoping it can earn my money back. I'll be putting in a buy order for this baby at .0001 to .0005, then its going to be my next QBID. :-)
[/B][/QUOTE]
I didn't like the sound of that article, the more I read about this company, the less I like, I think I will only consider buying this if it hits .0001, as long as it has room to go down there's a high likelihood it will drop more. At that point it would be a lottery ticket like CMKX.
I'll be back next Tuesday, 6/1.
May 27, 2004
BUFFALO GROVE, Ill., May 27, 2004 /PRNewswire-FirstCall via COMTEX/ --
GFY Foods, Inc. (OTC Bulletin Board: GFYF) announced today that it is creating a standalone subsidiary that is focused on providing catering services to businesses and families in the greater Chicago Metropolitan area, with more cities to be added, as the company opens additional franchises in other geographical areas of the country.
'We want to diversify our business focus and offer services that will enable us to better leverage our existing operations, facilities, staff and outbound marketing resources,'said Ed Schwalb, President of GFY Foods, Inc. 'The catering division will operate as a centralized office that will receive orders, organize them and then forward them to the closest GFY Foods, Inc. restaurant. We hope to convert the catering division at some point in the future to a standalone corporation that will be closely affiliated with us so we can better leverage our market presence and/or consumer awareness in disparate locations around the United States.'
The company is in the process of recruiting a catering manager and finalizing the logistics so that it can launch this service in a timely manner. By centralizing the process, the company feels that it can substantially reduce the costs that would arise from providing a separate catering function via each restaurant location. It will start with one truck that will pick-up and deliver food from the closest cafe to the catering job. Further, it is planned that one center will assure that there are standardized operating procedures in place to minimize errors and waste.
The company is currently operational regionally in the Illinois and Indiana areas. It has plans to become national by rolling out additional locations in key market segments and working closely with the Kahala Corporation. It hopes to open 8-10 new locations by the end of calendar 2004, in metropolitan areas where there is minimal competition and significant upside to build a brand and establish the company nationally. And, to continue to aggressively private label new/existing products that may integrate well with its existing line up of products and services.
About GFY Foods, Inc.
Founded in the spring of 2003 by Ed Schwalb -- GFY Foods is currently operating three restaurant locations. The company believes in the importance of providing high quality foods at affordable prices that are healthy alternatives to food that is now being sold to the American public. For more information please contact Ed Schwalb, President, 847.353.7554, 601 Deerfield Parkway, Buffalo Grove, IL 60089. ares@bwwonline.com
This release contains forward-looking statements within the meaning of the Securities Litigation Reform Act. The statements reflect the company's current views with respect to future events that involve risks and uncertainties including uncertainties related to successful negotiations with other parties, closing of transactions, capital availability, operational and other risks, uncertainties and factors described from time to time in the company's publicly available SEC reports. In light of these risks and uncertainties, the forward-looking events described in this release might not occur.
SOURCE GFY Foods, Inc.
Ed Schwalb, President of GFY Foods, Inc., +1-847-353-7554, or ares@bwwonline.com (GFYF)
------------------
'Alone we can do so little; together we can do so much.' - Helen Keller
[This message has been edited by TradingWizard (edited May 27, 2004).]
GFY Foods, Inc. Prepares to Launch Catering Division
Thursday May 27, 10:41 am ET
BUFFALO GROVE, Ill., May 27 /PRNewswire-FirstCall/ -- GFY Foods, Inc. (OTC Bulletin Board: GFYF - News) announced today that it is creating a standalone subsidiary that is focused on providing catering services to businesses and families in the greater Chicago Metropolitan area, with more cities to be added, as the company opens additional franchises in other geographical areas of the country.
ADVERTISEMENT
"We want to diversify our business focus and offer services that will enable us to better leverage our existing operations, facilities, staff and outbound marketing resources," said Ed Schwalb, President of GFY Foods, Inc. "The catering division will operate as a centralized office that will receive orders, organize them and then forward them to the closest GFY Foods, Inc. restaurant. We hope to convert the catering division at some point in the future to a standalone corporation that will be closely affiliated with us so we can better leverage our market presence and/or consumer awareness in disparate locations around the United States."
The company is in the process of recruiting a catering manager and finalizing the logistics so that it can launch this service in a timely manner. By centralizing the process, the company feels that it can substantially reduce the costs that would arise from providing a separate catering function via each restaurant location. It will start with one truck that will pick-up and deliver food from the closest cafe to the catering job. Further, it is planned that one center will assure that there are standardized operating procedures in place to minimize errors and waste.
The company is currently operational regionally in the Illinois and Indiana areas. It has plans to become national by rolling out additional locations in key market segments and working closely with the Kahala Corporation. It hopes to open 8-10 new locations by the end of calendar 2004, in metropolitan areas where there is minimal competition and significant upside to build a brand and establish the company nationally. And, to continue to aggressively private label new/existing products that may integrate well with its existing line up of products and services.
About GFY Foods, Inc.
Founded in the spring of 2003 by Ed Schwalb -- GFY Foods is currently operating three restaurant locations. The company believes in the importance of providing high quality foods at affordable prices that are healthy alternatives to food that is now being sold to the American public. For more information please contact Ed Schwalb, President, 847.353.7554, 601 Deerfield Parkway, Buffalo Grove, IL 60089. ares@bwwonline.com
This release contains forward-looking statements within the meaning of the Securities Litigation Reform Act. The statements reflect the company's current views with respect to future events that involve risks and uncertainties including uncertainties related to successful negotiations with other parties, closing of transactions, capital availability, operational and other risks, uncertainties and factors described from time to time in the company's publicly available SEC reports. In light of these risks and uncertainties, the forward-looking events described in this release might not occur.
--------------------------------------------------------------------------------
Source: GFY Foods, Inc.
------------------
'Alone we can do so little; together we can do so much.' - Helen Keller
quote:
Originally posted by TradingWizard:
In my oppinion Ed is doing too much expansion in a short period of time.
Stock going down - hopefully will recline.
I hope it was not my comment above.
------------------
'Alone we can do so little; together we can do so much.' - Helen Keller
------------------
'Alone we can do so little; together we can do so much.' - Helen Keller
------------------
'Alone we can do so little; together we can do so much.' - Helen Keller
GFY FOODS, INC. (OTCBB: GFYF) - FAIR SHARES
May 27, 2004
GFY Foods, Inc. (OTCBB: GFYF) has been busy since a reverse-merger in January 2004 transformed it from a troubled oil and gas investment business into an aspiring restaurant operation. GFY, whose business consisted of a Frullati Café in Buffalo Grove, Illinois at the time of the reverse-merger, has since announced two more Frullati acquisitions, and plans for more restaurants and food products.
As we pointed out in the earlier installments of this series, however, there were signs that GFY was faced with financial strains prior to the reverse-merger. As of December 31, 2003, it was in default on more than $60,000 of the $70,000 purchase price for the Buffalo Grove restaurant. See GFY Foods, Inc. - Healthy Food For Thought and Part II - Frullati Frenzy.
The Company's financial status raises serious concerns, particularly in light of its increasing financial obligations - including payment for the franchises, operation of those restaurants, and a generous payment package for its sole officer and director, Edward Schwalb.
As we discovered, cash may be king, but it is not the only form of payment available - not when a company has access to a stock ledger.
Schwalb's Sweet Deal
No one may be relishing GFY's new public company status more than its president, Ed Schwalb. On January 16, 2004, shortly after the reverse-merger was concluded, the Company entered into a five year Employment Agreement with Schwalb - with Schwalb signing for both himself and GFY. Under the Agreement, Schwalb was awarded a generous package that included the following:
cash compensation "to be determined by the Board of Directors based upon performance and available capital;"
250 million shares of GFY common stock - with the promise that he would, at all times during the term of his employment, own at least 70% of the outstanding shares;
an annual bonus, to be determined by the Company's Board of Directors, payable in cash or stock - with the caveat that the Board is not obligated to pay a bonus.
The promise to maintain Schwalb's 70% ownership interest in the Company for the next five years had substantial implications. After all, GFY had embarked on an aggressive strategy that, so far at least, had required it to issue millions of shares in payment for acquisitions. If that trend were to continue, Schwalb's holdings would balloon to massive proportions, while the interest of individual shareholders would be continually diluted.
Was Schwalb concerned that the Board of Directors might not award a fair salary or annual bonus? Probably not, since he was, and is, the Company's sole director.
Despite that seemingly comfortable scenario, however, nothing was left to chance. On May 5th the Employment Agreement was amended, with Schwalb once again signing for both parties.
The Amendment enumerated Schwalb's monthly salary and added a significant new wrinkle. First, it provided that Schwalb would receive $25,000 per month, retroactive to the date of the original Employment Agreement, payable either in cash or in shares of stock which had been registered on Form S-8 or another permissible Registration Statement.
A Form S-8 Registration may be used by a Company to register certain shares issued to employees, officers, directors and consultants pursuant to employee benefit plans. Form S-8 has been a uniquely convenient way to flood the marketplace with registered stock since it becomes effective immediately upon filing and without SEC review. To stem the potential for abuse, the SEC recently proposed new rules that would prevent shell companies from utilizing Form S-8 and restrict former shell companies from using Form S-8 after a reverse-merger until appropriate material information is made available to the public.
GFY's commitment to pay Schwalb a fixed monthly salary was a marked departure from the original agreement to pay a salary based upon "available capital." There has been no public information to suggest that GFY has yet developed cash flow sufficient to support a $25,000 monthly salary.
The Amendment to the Employment Agreement also created a new open-ended revenue stream for President Schwalb by promising to pay him an additional $70,000 for every acquisition that he initiated for GFY. Here, again the Company had the option of paying Schwalb's fee by issuing him registered shares of its common stock.
GFY shareholders, who might already have been uneasy about the commitment to maintain Schwalb's 70% ownership interest in GFY, now had further reason to be uneasy about the value of their own holdings, which could be diluted even further every month and with each acquisition. And they certainly could be wondering why Schwalb should reap an additional reward for identifying potential business opportunities, which, logically, should be his responsibility to shareholders as president of GFY.
And, if they have been focusing on these issues, they may have calculated that Schwalb had already earned as much as $265,000 in registered shares since the reverse-merger - five months of compensation at $25,000 per month and two acquisitions (assuming both new Frullati franchises were attributable to Schwalb's efforts) at $70,000 each.
In the case of the Elkhart, Indiana Frullati Café, that $70,000 fee seems particularly generous since it is twice the amount - $35,000 - that GFY paid to buy the franchise.
No wonder GFY has its sights set on eight to ten more acquisitions before the end of 2004. Every time it issues shares as part of a deal, Schwalb's holdings are slated to be adjusted upward and he stands to earn another $70,000 fee. Not a bad start for the sole officer and director of a small public company with no meaningful revenue history.
Bringing on the Shares
As of December 31, 2003, barely two weeks before its reverse-merger with GFY (the private company), F10 (the public company) had 75 million authorized shares, of which just 12,916,161 were outstanding.
The deluge was about to begin.
On January 12, 2004, the day of the reverse-merger, the public company - now called GFY - increased its authorized shares to 2 billion. Schwalb received 250 million shares under his original Employment Agreement and another 20 million shares as part of the reverse-merger.
It only took one week for the Company to start registering shares that could flood the marketplace. On January 20th the Company filed a Form S-8 Registration Statement, registering 750 million shares to be issued under something called "The 2004 Benefit Plan of GFY Foods, Inc" (the "Plan").
The Company did not say who would be receiving those shares, but the Plan provided that they could be issued to employees, consultants and advisors who rendered services to GFY. Presumably, this would include Edward Schwalb, who remained the Company's sole officer and director. Indeed, a series of Forms 4 (Declarations of Beneficial Ownership) filed by Schwalb with the SEC on April 9th indicated that 38,250,000 of the shares issued to Schwab were included in this Form S-8 registration.
That was just the beginning. On March 22, 2004, GFY doubled the number of authorized shares from 2 billion to 4 billion. Two days later, on March 24th, the Company issued another 1 billion shares to Schwalb, giving him 60.5% of the outstanding shares, a step toward its commitment to maintain Schwalb's 70% ownership interest.
The Company issued some of its newly authorized shares as part of the Elkhart, Indiana transaction. According to a Form 8-K filed by GFY on April 8, 2004, after completion of that acquisition, 2,593,265,161 shares of GFY common stock were outstanding - although it did not say how many shares had been handed to the Elkhart sellers or whether any additional shares had been issued to Schwalb for arranging that transaction.
In any event, according to an amended Form 13 D filed by Schwab with the SEC on April 9, 2004, as of March 31st he owned 1,302,250,000 shares of GFY stock.
There was more to come. First, however, on April 20, 2004 GFY doubled its authorized shares once again, from 4 billion to 8 billion. Then, on April 27th, the Company filed another Form S-8, this time registering an additional 1 billion shares to be issued to unidentified employees and consultants under GFY's 2004 Benefit Plan.
Again, Schwalb benefited from the Form S-8 registration - it included 30 million shares that had been issued to him, according to a Form 4 filed by Schwalb with the SEC on May 7th.
On May 7th, the same day Schwalb filed that Form 4, he received yet another bundle of GFY shares - an additional 2.5 billion shares, to be exact, giving him total holdings of 3,782,250,000 GFY shares as of that date, or 62.77%, of the 6,025,265,161 shares outstanding.
Just how many shares had been issued to Schwalb as of May 7, 2004? The Forms 4 that he filed with the SEC reveal the following:
January 12 20 million
January 16 250 million
January 22 250,000
February 25 1 million
March 1 1 million
March 4 3 million
March 10 3 million
March 12 20 million
March 19 5 million
March 23 5 million
March 24 1 billion
April 1 5 million
April 7 10 million
April 27 15 million
And that does not include the 2.5 billion shares issued to Schwalb on May 7th.
As it turns out, Schwalb was not only acquiring GFY stock, he was selling it as well. In fact, between March 8, 2004 and April 23, 2004 he sold 41 million GFY shares for reported proceeds of $86,900.
The timing of those sales is also worth noting. Schwalb sold 2 million shares on March 8th, the day before the Company first announced plans to acquire the Elkhart Frullati franchise and another 3 million shares on March 31st, the day the Company announced that the deal was "moving forward" (as well as an additional 10.5 million shares between those two dates). He sold another 6 million shares on April 20th, the day the Company issued a press release declaring plans to move forward with additional acquisitions and product development.
Schwalb has not been the only one selling GFY shares. The Company has appeared among the most actively traded OTC Bulletin Board issues in recent weeks - frequently trading over 100 million shares a day, with volume exceeding 1 billion shares on two trading days in mid-April.
Not surprisingly, much of that volume also coincided with the Company's press releases. On March 9th, the day the Elkhart deal was first disclosed, almost 99 million shares were traded. On March 24th, when the Company revealed it had retained Intelective Communications to develop a national brand, more than 488 million shares changed hands. Another 371 million shares traded over the next two days. On April 1st, the day before the Elkhart transaction was declared final, 126 million shares changed hands. 100 million shares were traded on April 2nd.
High volume coincided with other press releases. Volume reached almost 1.2 billion shares when the Company released its operational "update" on April 20th; 1.6 billion shares were traded the day before. The May 4th announcement of GFY's plan to acquire the Frullati franchise in Willowbrook was greeted with trading volume of 458 million shares.
In other words, news from GFY seemed to precipitate trading interest - even when that news contained few details and little basis for predicting the Company's future financial prospects. In other words, there was considerable trading activity for a business that has not yet released a post-merger financial report or indicated the projected revenues for its Frullati franchises.
So who's been buying - and why?
©2004 Stock Patrol.com. All rights reserved.
http://stockpatrol.com/schlock/articles/gfyfoods3.html
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'Alone we can do so little; together we can do so much.' - Helen Keller
For about 30 sec GFYF was trading for 0.0001 and 0.0005 (check day's low).
And yesterday it was high as 0.011.
Are MMs responsible for that? or zero's been missed - painful mistake
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'Alone we can do so little; together we can do so much.' - Helen Keller
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'Alone we can do so little; together we can do so much.' - Helen Keller