AVT, Inc. (OTCMKTS:AVTC) Presents Buying Opportunity

AVT, Inc. (OTCMKTS:AVTC) opened with some optimism on Monday, as last week’s deep correction was perceived as a buying opportunity for all tickers directly or tangentially related to the marijuana industry. AVTC grew by more than 22% to reach $3.87 on dollar volumes above $1.9 million. Still, the buying is tentative compared to the rush in the middle of last week.

AVTC is a producer of cannabis edibles, so it may benefit from direct sales. Added to this is the company’s distribution network of vending machines and automated kiosks, which is in itself a cash cow business. Still, it is the chance of selling medical marijuana products that suddenly lifted AVTC to new, extremely high levels of $5 at the peak.

AVTC also improved its standing by announcing an expansion of the brands featured in its machines, by adding a Burrito lunchbox. The press releases in the past days served well to boost the company’s popularity, at least briefly.

Investors’ forums believe AVTC is still not making enough, despite the vending machine business, and the past few days are just an insider attempt at propping up the price, and then be able to dump shares on the market. On top of all, AVTC is not showing any significant progress, with sinking numbers in most of the fields of its latest financial report. The shrinking is as follows:

• $492K cash, down from $1.059 million

• $1.8 million current liabilities, up from $1.5 million

• $1.9 million revenues, down from $3.4 million

• $236K net loss, down from $184 K net gain

The data compares the quarter to June 2013 with the same quarter in 2012. Now, AVTC will have to show some more optimistic data, and perhaps prove that cannabis will add a stream of revenues, as a price of a few dollars would need some material justification.

Speaking of marijuana edibles, another company had a recent run that resembled that of AVTC in scale, if not in stock price. Latteno Food Corp. (OTCMKTS:LATF), sadly, is back to triple-zero levels after breaking through the $0.001 position for a brief spell. But we will be watching this ticker, for the potential to rise suddenly and mark other good days. LATF is risky, since the good days are usually followed by deep reversals, so yet another reason to keep a close eye.

Easton Pharmaceuticals, Inc. (OTCMKTS:EAPH) also awakened doubts as to the underlying quality of the company, and the stock went downward after the exuberant days last week. The ticker stepped back about 20% from the penny levels to $0.008, and movements in either direction are potentially large for those rock-bottom prices.

Now, AVT will have to prove its steadiness at the lower levels, and perhaps for a while aim for a significant price barrier such as $4. Choose your time frame well and make sure you can afford the losses if you get caught in one of the setbacks.