Bluforest, Inc. (OTCMKTS:BLUF) Drops as Activist George Sharp Moves In with Lawsuit
The promotion for Bluforest, Inc. (OTCMKTS:BLUF) seems to have run its course, despite the ongoing barrage of emails. No new messages came August 20th, so far. BLUF suddenly deflated in volumes on Monday, down to $290,000, and lost another 13% to stand at $1.31. But that may not be all of the fall- an old lawsuit surfaced for BLUF, with investors complaining of misleading press releases back when the company bore the name of Greenwood Gold Resources, Inc. 
With the BLUF newest promotion clocking in at a total of $420,000, we see that old history repeating. But this is not all- the complaints is added that BLUF overstated the value of its forest properties in Ecuador, and there is even questioning if those assets exist at all, much like the purported purchase of a gold mine that never was. 
Even without those devastating news, BLUF was shaky and the promotion did not create a huge effect. Still, at $1.31, the ticker has a long leeway for a dramatic crash, given that this is the second time the company’s directors used paid promoters to disproportionately inflate the stock price.
Up until the lawsuit news broke, BLUF hardly looked like the real deal, with very limited financial resources:
- $1,357 cash
- $18,080 total current assets
- $3.6 million total current liabilities
- Zero revenues
- $416,085 net loss
While Mr. Charles Miller is listed as a CEO for the company, the main plaintiff, well known penny-stock activist Mr. George Sharp, claims that a Mr. Jim Can was directing the enrichment scheme both for Greenwood Gold and for the current promotion with more than 114 emails. But perhaps just as the gold mining failed, so BLUF will hardly become more than an “emerging leader” in the carbon trading industry.
The question from now on is how quick the fall would happen. The shares were decreased by two splits in 2012 and early 2013, and even in post-split prices the fallout from the 2012 promotions of the gold company are a 90% and above loss in value. If BLUF reaches extremely low prices again, a reverse split repairs the price range to a more respectable level.
In June, George Sharp started a class action suit against Xumanii International Holdings, Corp. (OTCMKTS:XUII), another ticker that was widely and blatantly promoted. And Premier Brands, Inc. (OTCMKTS:BRND) also attracted the attention of the activist with a proportion that moved the stock dramatically out of its range. The action against BRND was in October last year.
If you are still interested in BLUF, it is best to make your own research and not close your eyes to the red flags.
