Latteno Food Corp. (OTCMKTS:LATF) Gasps for Air Amid Sinking Trend

Latteno Food Corp. (OTCMKTS:LATF) had a rare day of growth at the beginning of the new week. Among marijuana stocks, there is always the vague optimism that a new trading week would help overcome the general pessimistic trend. But so far, the growth was slim for LATF, a bit more than 14% to $0.004, as buying remained tentative at $363,000.

For now, LATF has not sent out any updates, and it relies on the general mood of the market to get out of the downward spiral in the past months. But investors’ forums look nervous again, expecting a corporate update. Also, there are those who propose riding out the drop in LATF with a small position, as the ticker is pressured by short sales. Still, there is time to check if the legalized marijuana index is indeed so easily profitable, and if LATF will start marking earnings from several cannabis-related activities.

The opinions at Yahoo! Finance message boards are also polar, with one side predicting LATF would be brought down to $0.0025 by short sellers within weeks, while others believe the depression is temporary and caused by the general jitters in the marijuana sector. What is presented as the most serious setback are the SEC measures to suspend overly-active, overpromoted marijuana stocks.

What spoils the game for LATF are all the doubts that this is not really a marijuana company, except in the press releases, and that the partnerships are just used to create PR hype.

But there are even more blatant stories, such as 3D Eye Solutions, Inc. (OTCMKTS:TDEY), the company that switches identities often to make use of hot trends. The latest mention of a potential partnership in the legalized cannabis sector revived the flagging stock of TDEY, but the ticker sank back again toward $0.0012. TDEY is also burdened by a scandal surrounding its CEO Ed Vaksers, concerning the theft of artwork. Also, TDEY was heavily promoted by PR and emails, thus bringing the stock price to unsustainable levels.

And just when penny prices and a booming trend were envisioned for USA Real Estate Holding, Co. (OTCMKTS:USTC), the ticker sank on heavy selling again, toward $0.0013. USTC is yet another company that switched from real estate to legalized marijuana, without being a licensed seller or producer. Unfortunately, USTC came to the attention of investors a bit late, when the enthusiasm about MMJ stocks had already fallen.

While LATF is not in the Marijuana index anymore, the marker shows the still gloomy sentiment of the sector. The index is down about 5% again on the day, sinking below $4 at a slow rate. More companies were in the green, the biggest grower being Easton Pharms, Inc. (OTCMKTS:EAPH), going up 24% to $0.02. Several of the suspended tickers, including Growlife, Inc. (OTCBB:PHOT) were removed from the industry-wide index.

If you decide to place your bets on LATF, keep in mind that the shares were at triple-zero positions only a few months back. Avoid over-investing in this selection, as there is plenty of room for further falling.