Latteno Food, Corp. (OTCMKTS:LATF) Sinks Lower Despite Earnings
Latteno Food, Corp. (OTCMKTS:LATF) is sinking into lower and lower ranges each day, as the ticker was expelled from the Marijuana index and suffered a loss of interest and trading volumes. On Wednesday, LATF sank even faster, down more than 13% to $0.0044, on selling volumes above $551,000. The selling volumes are within the usual range for the past month, though twice as high as Tuesday’s.
Unfortunately, the re-posted filing of financial results did not help the company much, despite the reported high earnings. For now, LATF is still marking sales based on its old business, and the data are not audited, so we cannot report on their reliability. According to the latest PR from May 7th, the first quarter of 2014 was indeed amazing, with:
- $3.79 million Q1 revenues
- $15.1 million revenues for 2013
- $76,000 cash
So far, LATF has survived surprisingly well, despite all the other discoveries of potential fraud, linking LATF to other businesses and underpriced tickers. It turns out LATF and Mekonza Corporation are sharing an address with Health Sciences Group, Inc. (OTCMKTS:HESG), which is another speculative MMJ ticker with an extremely low price and high volatility. Investors’ forums are even more open about calling LATF a scam, despite its good run during some of the best months for the cannabis business. But the promises that the company would unroll sites, services and even selling portals are not enough to regain the lost confidence.
The only question is how low LATF would go, and whether there would be days of phenomenal growth that draw inveterate investors eager for a quick gain. LATF has had days of doubling in value, especially starting from the lower prices, but also had painful corrections within a short time. The ticker was removed from the MMJ index for failing to keep the one-cent levels. The index changed its price criteria, and added a scrutiny of whether the companies included showed a solid interest in the MMJ business, or were just newcomers going after easy fame.
LATF is one of the few rather stable movers in the sub-penny range. Unfortunately, it was drawn down to take profits every time it went above one penny. The company has an over-inflated share structure, and this prevents the stock price from getting too high.
If you are looking for a new mover at that range, we are seeing a more lively performance from USA Real Estate Holding, Co. (OTCMKTS:USTC). The ticker crashed from five cents and into the double-zero position. In the past two trading days, USTC was bought up again in its $0.001 position, doubling in price to $0.002. The trend is small, but the fast percentage gains led to a higher opening on Thursday.
If you are still fond of LATF for being one of the early adopters of the cannabis business model, we remind you that most of the promises are in the project stage. And even if LATF bounces upward, this may create even more risk for a fast downward shift, so avoid investing unless you can afford to lose your position in part or in whole.