Latteno Food Corp. (OTCMKTS:LATF) Becomes Top Daily Winner in the Marijuana Index
Would marijuana, by any other name be so lucrative? This is the question that investors are trying to ask about Latteno Food Corp. (OTCMKTS:LATF), one of the best-liked companies claiming to be ready to introduce its marijuana edibles. Now, there are doubts that LATF is taking a bit too long to start in earnest with the legal cannabis business, and that it relies mostly on other sources of revenues, while inflating its stock price with mere talk of marijuana. 
Unfortunately, the price gains are not so thrilling in themselves. LATF is having trouble staying above the one-cent level, despite the expectations for an easily achieved price of a few cents. LATF still managed a small climb, carried by Tuesday’s trading that tried to repair the positions of many marijuana stocks. LATF gained 24% to $0.0133, as buying expanded to $5.4 million.
The biggest worry of investors is that LATF has a dismal share structure, with a 1.7 billion shares in free float, which means an inability to create enough squeeze and send the price to the coveted levels of a few cents. The expectations for climbing to $0.02 were reiterated in investors’ forums, but that still looks like a distant event, given how much LATF struggled to gain even to one cent, and was often drawn down from that position by selling for profit-taking.
Despite this, LATF was the strongest gainer on the Marijuana index, followed only by Advanced Cannabis Solutions (OTCBB:CANN), which added more than 17% in a totally different price range, reaching $28. LATF is strange for having days that resemble the usual movement of rock-bottom stocks, with the occasional run above 100%, but also for growing with steps that recall companies in more respectable price ranges.
The biggest problem is that the engine behind the earnings is a seafood company, Mekonza Corp., which is in a way using the ticker as a vehicle for exposure to the OTC markets. The other problem is that the stellar financial results of LATF are still unaudited, despite the amazing performance of the 2013 operating results. LATF claims to hold:
$15,1 million seafood revenues for 2013
$989,000 pretax profit for the year
Despite this, LATF has no updated 10-Q filing, and its balance sheet still reveals just $1,000 cash, contributing to the many discrepancies. There is also no proof that the legal cannabis activities have gone beyond inventing a website and inviting users to contribute recipes for marijuana edibles.
LATF, however, remains a bit steadier than other choices in the sub-penny region, as it is a more habitual choice for investors. Newcoming tickers enjoy a fast rise, usually followed by stagnation or excessive volatility. Such was the case of Revolutionary Concepts, Inc. (OTCMKTS:REVO), which was late to the party. REVO announced its plans to enter the legal marijuana industry in the past months, and managed to grow about ten times, to a peak of $0.03, only to slide back below the penny, toward $0.009.
The early months of the marijuana boom are mostly about publicity and loudness, as there are still not enough indications that any of the high-flying companies is reaping in the benefits of cannabis sales. If you like LATF for its future plans, there is still a risk that those plans may wait a while- so be prepared for contingencies until the goals start to materialize.
