A Bumpy Buggy Ride on Wall Street

On the whole, I would definitely bet on Amish business.

Just maybe not this one.  At least not right now, and definitely not with any of my Scottrade funds.

Pasta-maker Amish Naturals, which we covered in January, undoubtedly has a good product, good intentions, and according to the analysts, good management behind it.

But Chuck Jaffe at CBS Marketwatch claims the company may have fallen victim to some overblown hype meant to ‘pop’ the stock, a strategy crafted to produce quick profits for those in the know.

A recent 20-page hyperbole-filled newsletter places Amish Naturals ‘in the company of giants’, linking the tiny firm with true biggies such as Nestle and Heinz, and suggesting it may be ‘the Starbucks of the organic revolution.’

All this despite being a ‘developmental stage’ company having ‘no significant sales yet’ and according to Jaffe, an ‘ugly’ price-to-book ratio.

The stock has definitely popped since going public in late 2006.  But at the time of this writing on Friday the 2nd, it was down 22% on the day.

That’s a ride that could use an airbag.

The origin of all the hype is something of a mystery.

Randy Lewis, in charge of investor relations for the company, says that Amish Naturals has nothing to do with the newsletter.

In any case, I’d wish Amish Naturals the best, but also hope that not too many get taken for a ride on what looks like a crafty sales pitch by someone out for a quick killing.