Everyone Loves Nate’s Foods Co (OTCMKTS:NHMD)

The torrent of news coming out of Nate’s Foods Co (OTCMKTS:NHMD)’s headquarters has been nothing short of relentless over the last few weeks.

The whole thing started at the end of October when the company told us that they’re gearing up for the start of production. Later, they set the date for the official launch, organized a party where shareholders got to taste the new pancakes in a can, and told us that they have secured a financing agreement which should keep the operations going and help with the launch of some new flavors and products.

Generally speaking, many people hold the opinion that a company which issues so many press releases in such a short period of time is doing it solely for the purpose of inflating its stock. It’s pretty clear, however, that these people are not too concerned about the constant stream of news coming from NHMD. In fact, everyone seems to be happy about NHMD.

Consumers, for one, are absolutely ecstatic. The company launched its first batch of Nate’s Pancakes through their website on November 17 and within 20 minutes, they managed to sell a total of 10,000 cans. Currently, NHMD are in the process of releasing the second batch and they announced on Monday that they’re already receiving pre-orders.

Investors appear to be quite hyped up as well. The demand for NHMD‘s pancakes is certainly huge and we can safely say that the same goes for the stock. The ticker’s performance since the beginning of the month has been nothing short of astonishing. Red sessions are a rarity, volumes are significant, and the total gains between November 3 and yesterday amount to more than 300%. Indeed, NHMD experienced a scary drop on Monday when it wiped out a quarter of its value, but yesterday, it bounced back up and finished the day at $0.165 per share.

It would appear that NHMD‘s management team are doing their best to keep the fire going. They have received quite a lot of questions over the email and, for the sake of transparency (and, most likely, efficiency), they have decided that instead of answering each and every one of them individually, they’ll do it through a series of 8-K forms. This is getting people even more excited. The message boards and social networks are absolutely buzzing and many investors are saying that they are accumulating more and more shares.

The investors who are buying right now are certainly happy and, considering the explosive chart, they have every right to be. There are some other people, however, who probably sport even wider smiles. Care to know who they are?

All you need to do is open the 10-Q covering the third quarter of 2010. Indeed, the report is quite old and it was filed when the company was still traded under its previous name and ticker symbol. That, however, doesn’t mean that the information in it is irrelevant. Especially the one found in Note 4 – the Common Stock section.

If you read through it, you’ll see that back in 2007, the company issued a total of 42,000,000 shares of common stock at $0.0008 a piece. You’ll also see that some more discounted stock has seen the light of day over the years. We checked the Form 10 filing which was published after NHMD went through its reverse merger and from what we can see, all the cheap shares should still be outstanding and freely tradeable.

And this, in turn, means that the people who got them are absolutely free to let them loose on the open market and cash in on the huge profits.

About an hour after today’s opening bell, the ticker is sitting at $0.155 per share (6% in the red).