Hot or Not? Three Small Cap Stocks Attracting Some Extra Attention: GRAS, ISCO & RPBC

Small cap stocks Greenfield Farms Food Inc (OTCMKTS: GRAS), International Stem Cell Corp (OTCMKTS: ISCO) and Redpoint Bio Corporation (OTCMKTS: RPBC) have all been getting some extra attention lately in various investment newsletters. However, none of these small cap stocks appear to have been the subject or paid promotions or investor relations activities. So does that make any of them good bets for traders and investors alike? Here is a quick look and a reality check:

Greenfield Farms Food Inc (OTCMKTS: GRAS) Expects Financing to Close in February

Small cap Greenfield Farms Food operates through its wholly-owned subsidiary Carmela's Pizzeria CO, Inc. through the Carmela's Pizzeria Dayton restaurant locations that include pizza buffets, alcohol service, delivery and carry-out depending on the location; and has previously been a limited producer and marketer of "grassfed" beef that supplied a North Carolina based grocer. On Monday, Greenfield Farms Food closed at $0.0033 for a market cap of $31,345 plus GRAS is up 230% since last October and down 99.4% since April 2011 according to Google Finance.

What's the Catch With Greenfield Farms Food? According to various disclosures, no transactions have occurred to mention Greenfield Farms Food in various investment newsletters. Last Wednesday, Greenfield Farms Food provided an update on its wholly-owned subsidiary, Carmela's Pizzeria CO, Inc. The update noted that Greenfield Farms Food had completed arrangements for financing to fund the first phase in the development of its national franchising program for the Carmela's Pizzeria concept with the financing scheduled to close on February 15. In addition and earlier in the month, Greenfield Farms Food announced the grand opening of its fourth Carmela's Pizzeria restaurant located in Brookfield, Ohio; while before Christmas, the company reported that its Ohio-based units located in Centerville, Springboro and New Carlisle are currently achieving sales "at a rate to realize an estimated aggregate of $2,000,000 (unaudited) in annual revenue for 2014." However, Greenfield Farms Food only acquired the assets of Carmela's effective October 1, 2013, while before that the company reported virtually no revenues; net losses of $14k (most recent reported quarter), $315k and $84k plus net income of $285k for the past four reported quarters; and no cash to cover $441k in current liabilities at the end of last September. So perhaps investors should wait for some more audited financials to appear.

International Stem Cell Corp (OTCMKTS: ISCO) Gives a Shareholder Update

Small cap International Stem Cell Corp is focused on the therapeutic applications of human parthenogenetic stem cells (hpSCs) and the development and commercialization of cell-based research and cosmetic products. On Monday, International Stem Cell Corp fell 1.79% to $0.22 for a market cap of $32.83 million plus ISCO is down 12% over the past year and down 40.5% over the past five years according to Google Finance.

What's the Catch With International Stem Cell Corp? According to various disclosures, no transactions have occurred to mention International Stem Cell Corp in various investment newsletters. Last Tuesday, International Stem Cell Corp issued a lengthy shareholder update covering the company's Research and Development accomplishments, future expectations and anticipated milestones, expanded intellectual property portfolio and commercial and financial performance for the first nine months of 2013. The update noted some critical upcoming milestones for the first quarter, including:

A pre-IND meeting with the FDA to review pre-clinical data, manufacturing protocols and clinical study design for a Parkinson's Disease program. The release of interim data from the large-scale primate study begun in May of 2013. This interim data should give a good indication of whether or not the positive results of pilot primate study will be reproduced.

Otherwise, it should be noted that Executive Vice President Dr. Simon Craw gave a corporate overview of International Stem Cell Corp and its subsidiaries at the recent Biotech Showcase™ 2014 in San Francisco that was well attended by industry players and investors alike. A quick look at International Stem Cell Corp's financials reveals revenues of $1,670k (most recent reported quarter), $1,457k, $1,285k and $1,247k for the past four quarters plus net losses of $3,799k (most recent reported quarter), $2,201k, $1,712k and $2,599k. At the end of September, International Stem Cell Corp had $1,842k in cash to cover $6,389k in current liabilities. However, those financials may or may not matter – so long as the company comes up with something that gets approved by the FDA.

Redpoint Bio Corporation (OTCMKTS: RPBC) Cleans Up Its Balance Sheet

Small cap Redpoint Bio Corporation is following a strategy focused on preserving the value of the License and Commercialization Agreement it entered into with International Flavors and Fragrances, Inc. (IFF), a global leader in the food and beverage industry. On Monday, Redpoint Bio Corporation fell 7.69% to $0.006 for a market cap of $479,489 plus RPBC is up 200% over the past year and down 93.3% over the past five years according to Google Finance.

What's the Catch With Redpoint Bio Corporation? According to various disclosures, no transactions have occurred to mention Redpoint Bio Corporation in various investment newsletters. Moreover, there has been no recent news from Redpoint Bio Corporation beyond some filings with a Form 8-K on January 14th noting an agreement with Dr. F. Raymond Salemme, the company's former President and Chief Executive Officer, relating to certain compensation amounts that the parties previously agreed would be deferred and paid only upon certain events in accordance with the Letter Agreement. Basically on or around January 15, 2014, Redpoint Bio Corporation would be paying Salemme a total of $46,284. In addition and last December, the Company settled an aggregate of $312,000 in accounts payable for an aggregate amount of $156,000 with certain creditors. This means that as of January 14, 2014, Redpoint Bio Corporation had approximately $68,000 in cash and $196,000 in liabilities, but the company had not filed any financial statements since June 30, 2012 and will be incurring additional expenses for audit and legal fees associated with the filing of any subsequent financial statements. An income statement on Google Finance also reveals revenues of zero (most recent reported quarter), zero, $0.50M and $0.03M for the past four reported quarters along with net losses of $0.12M (most recent reported quarter) and $0.08M, net income of $0.37M and a net loss of $0.16M. So while Redpoint Bio Corporation has cleaned up its balance sheet, investors would still be wise to wait for more financials.