Latteno Food Corp (PINK:LATF) About to Get Pumped

Whenever a sector or industry gets hot, pumpers and schemers are bound to try to get a piece of the action. Latteno Food Corp (PINK:LATF) is a prime example of that.

Today, an impressive number of newsletters are touting LATF. In the world of pumping, though, quality trumps quantity. The promoters paid to pump LATF are StockMister and the MJ Capital group which includes StockBomb, StockLockandLoad and StockRockandRoll.

These pumpers are prolific, but their pumps rarely last long. Both groups pumped Buyer Group International, Inc. (PINK:BYRG) on Mar. 18. Even after yesterday’s 57% gain, BYRG is still down 80% from the pump high.

LATF itself has quite a few inconsistencies in its story. The company claims it has acquired a GTG Inc., which supposedly generated $2 million in sales in 2012 that ultimately resulted in a net income of approximately $128 thousand.

While LATF has provided financial statements for GTG, the company has failed to explain how they could acquire GTG. At the end of 2012 LATF had a little over a thousand dollars in cash and about $48 thousand in total current assets.

After the close yesterday, LATF announced another “acquisition”. Again, no information as to how they paid for the acquisition was disclosed.

Undoubtedly, the medical marijuana sector is very exciting for investors right now. That, however, gives even more reason to be careful and do the due diligence before throwing money at pumped stocks claiming involvement in the field.