Latteno Food, Corp. (OTCMKTS:LATF) Shrinks Despite Acquisition News

Latteno Food, Corp. (OTCMKTS:LATF) is slowly sliding, since it was expelled from the Marijuana index for being unable to hold onto the one cent price range. On Tuesday, LATF slid down a round 10% to $0.0063, on selling volumes above $845,000. LATF has been alternating days of careful buying and selling, as the company has placed itself as one of the go-to selections for the legal cannabis sector, despite the doubts and red flags surrounding its business.

LATF tried to parry the slide with more updates on its upcoming expansion into legalized marijuana products. The company announced the purchase of Diamond Grove Delivery, a transportation service. LATF plans to spread out the products of Rx Harvest Collective, and boasts that it would inherit several thousand Instagram and Facebook contacts, who are also potential clients. With this, LATF will pad its own delivery service, which launched only a few days ago.

LATF is indeed looking busy with websites, building a consultancy office in Los Angeles, but the stock price is rather pressured, and the initial enthusiasm of the pot stock trend has worn off. So if you are looking at LATF both as a relatively stable position and a bargain at the current prices, you must recall that the ticker was at triple-zero positions at the beginning of the year. So far, LATF uses the cannabis edibles of other producers, and has not started its own line, despite the ideas and developments.

Investors’ forums are split in their opinions. On the one side are those who believe LATF is receiving unwarranted bashing, and is actually a quality company. Others believe LATF will revisit its price lows, and that the bright financial reports of unusually high earnings do not correspond to the reality.

And a big red flag is the link between LATF and Health Sciences Group, Inc. (OTCMKTS:HESG), a now-defunct marijuana stock with an extremely low price. HESG is sharing the same business address with Rx Harvest Collective, Inc., the new delivery subsidiary that LATF is touting. HESG remains a thinly traded stock, with huge daily fluctuations and the occasional jump to double-zero positions. Unfortunately, HESG spends a lot of time at triple-zero prices. And recently, HESG filed a Form-15, absolving itself of further filings.

And on the same business address, one finds a Mr. Derek Nguyen, whose presence can be traced to a stock promoting company, and a financial entity that financed Cannabis Science, Inc. (OTCMKTS:CBIS). It seems the address at “2549 Eastbluff Dr., Suite 216, Newport Beach, CA” is quite a busy place of conflicting interests, and according to investors, there is nothing on the address to suggest that the activities are real.

The only question is how long LATF will survive before dragging down more trusting investors who would like to try out the ticker for a longer run, impressed by the promises. As the Marijuana index remains depressed, there is little enthusiasm that could lead LATF upward and hide the ugly warnings about the company’s quality. So it is best to plan your investments accordingly, and not get caught in stock selections with so many downsides.