Latteno Food, Corp. (OTCMKTS:LATF) Erases Gains Once Again
Latteno Food, Corp. (OTCMKTS:LATF) was used as a vehicle for short-term gains again, but the latest round of ups and downs helped to drag the stock price to a lower level. Now, LATF corrected by another 13% to reach $0.0051, on selling volumes above $810,000. Despite its removal from the Marijuana index, LATF remains well-traded, though it continues to sink, and there are expectations for a return toward triple-zero positions. 
LATF sank immediately, after its latest PR update started growing stale. Now, we have to wait and see if LATF manages another strong run, its major attraction for investors. But for a few weeks now, LATF has not repeated the daily growth of 100% or more that was very habitual at the beginning of March. 
Investors’ forums opinions still cannot agree whether LATF could be called a real MMJ company, or it is still a pink sheet bubble. The PR shows that LATF has prepared several activities, from consulting to growing, but those are still in the projection phase. Also, we have no indications whether the company has managed to receive any licenses to participate directly into the legal marijuana business. We have no way of knowing when any of the activities would start bringing in revenues, but even then, LATF needs to file audited reports.
The OTC financial filings show the following picture for Q1 of 2014:
- $3.79 million net sales
- $63,000 advertising expenses, up from $13,000 in Q1, 2013
- $207,395 operating gain
- $78,885 cash
While this looks much better, and the increased publicity revenues speak of greater activity, LATF is still depressed due to the high number of shares outstanding, above three billion, as well as a 1.5 billion share free float. This means that while trading keeps up a good pace, LATF cannot rely on scarcity to push the share price upward.
What LATF did a few months ago is now repeated by the graph of Triton Distribution Systems, Inc. (OTCMKTS:TTDZ). TTDZ has still not moved decisively toward $0.05 as expected, but with incremental gains went up to $0.0331, on a smooth rising trend, without major daily losses. TTDZ is also moving upward mostly supported by a steady stream of PR outlining the future activities of the new MMJ company. Now, TTDZ is expecting a name change, which may prop up the optimism for a few days ahead of the news. Unfortunately, TTDZ is also not very encouraging when it comes to selling actual cannabis products.
US Energy Initiatives, Inc. (OTCMKTS:USEI) is also currently sinking, though much faster than LATF. In the past month, USEI lost nearly 70% of its value, toward $0.005.
If you are still seeing LATF as a viable entry point into the MMJ sector, be aware of the risks for further falling. This stock shows significant short-term volatility, so be prepared for fast changes in direction within the frame of a few days.
