Easton Pharmaceuticals, Inc. (OTCMKTS:EAPH) Pressured Further Downward

Easton Pharmaceuticals, Inc. (OTCMKTS:EAPH), one of the many rising star-tickers in the past days, had its first correction since it was picked up on a wave of enthusiasm. EAPH slid down moderately, by 22$, to stand at $0.0092, on selling volumes above $630,000. So far, selling has not depleted much of the shares that were mopped up in the middle of last week, on two days of extremely high volumes.

EAPH shows the inherent volatility of double-zero shares, but to this is added the emerging downward pressure that is wiping out the phenomenal gains of pot-stocks incurred in a few wild days of buying. EAPH has not added any new press releases or news items since its financials in December. And Hot Penny Picks was the last free promoter, with an email already five days old. With all those factors bound together, EAPH can only rely on the very low price to attract new buying at market open on Monday.

Despite the high promises of the OTC markets, investors’ forums are catching up on the idea that EAPH is still an underdeveloped business that relies on future medical marijuana revenues. In that situation, stock movements may be much faster than real bottom line results. This could mean that EAPH can easily wipe out the gains and return to low volumes and a lower price. But EAPH has the surprise factor of a very cheap stock, which could still have the occasional good day.

AVT, Inc. (OTCMKTS:AVTC) is yet another recent mover that gained as fast as a double-zero ticker. But AVTC also slid down from its peak at $5, to face the new week with a price of $3.17, reached after two days of selling and lower offers.

Latteno Foods Corp. (OTCMKTS:LATF) was yet another sub-penny stock that waited for its hour, and for a while showed quite a bit of optimism. LATF moved up from a rock bottom triple-zero price, to reach $0.0018, only to head downward again as the pot stocks started correcting en masse in the past two days.

If you still like the sector in general, be aware that the inflow of new tickers has slowed down, and previous climbers are abandoning their golden days, instead returning to levels before the boom- and given the size of the boom, such a return may be expensive. Plan the size and timing of your investment accordingly, and avoid investing unaffordable sums when there is a clear downside to the pot stock levels.