Latteno Food Corp. (OTCMKTS:LATF) Explodes

Despite being pushed out of the triple zero price ranges by the general marijuana hype the stock of Latteno Food Corp. (OTCMKTS:LATF) was still having trouble keeping its gains. At the end of last week it once again slipped back down to just $0.0009 per share. During the weekend though investors must have underwent a sudden change of heart and with the start of the new week LATF simply shot through the roof on unprecedented support.

The ticker opened with a gap up at $0.001 and continued to rise throughout the session. The climb was far from smooth but still at the end of the day LATF was sitting at $0.0025, 177% above its previous close. What was even more impressive was the sheer number of traded shares- when the closing bell rang more than a billion had been exchanged on the market. This is more than half of the total outstanding number of 1.8 billion reported on November 7. The surge happened on general hype alone with no PRs released by the company or the involvement of paid pumpers.

Although LATF describes itself as a medical marijuana company its major source of revenues is the seafood subsidiary Mekonza Corp. Last November they were going to sell Mekonza to an unnamed publicly-listed importer for the sum of $1 million. Ultimately the plan fell through and apparently so did the intentions for share buyback.

For now the company is in a stable financial state or at least it was at the end of September. Back then they reported the following results: 

• $139 thousand cash
• $915 thousand total current assets
• $589 thousand total liabilities
• $10 million revenues for the first 9 months of 2013
• $573 thousand net income for the period

Well, even having a positive bottom line was not enough to save the shareholders  from the massive amount of dilution that has taken place during the same period. At the end of 2012 there were 34 million outstanding shares while in less than an year that number became 1.8 billion as we said earlier. With a total authorized amount of 4 billion there is still a lot of room for further issuance of shares.

Approach LATF with caution if you are contemplating any deals with their stock. The current hype-driven climb may offer opportunities for some quick gains but the stock is capable of correcting equally as fast. In early trading today LATF is 24% in the green trading for $0.0032.

On the other hand the much more respectable stock of GreenGro Technologies, Inc. (OTCMKTS:GRNH) is having a troubles morning and is currently plunging downwards by 8% to $0.50 per share.