Rightscorp, Inc. (OTCMKTS:RIGH) In the Red, Dragged Down by Doubts
Just as Rightscorp, Inc. (OTCMKTS:RIGH) exploded, the next day came with the logical reversal. RIGH slid back 40% to $0.0015, on selling volumes of $1.69 million. What is strange is that RIGH was touted as a medical marijuana company, while its OTC profile describes it as an intellectual rights business. Indeed, RIGH has an idea to develop a website that matches customers to medical cannabis treatments available at the moment- and this is the promise that lifted RIGH out of obscurity. 
Still, RIGH at this price may achieve other good days, though the initial launch of adding 212% in a single trading session would hardly be repeated. Just to recall, RIGH has all the signs of a highly risky company that may or may not make it in the medical marijuana boom- provided there is an actual sales boom, and not just extravagance on the OTC markets. RIGH shows in its latest financial filings:
- Zero cash and assets
- $109,067 total liabilities
- No sales
- $161,567 net loss for the past 42 months
But those are not the only red flags surrounding the company. Its BudGenius.com business is having trouble with registrations, or is revoked- and practically is in a trial mode, not able to work as a web-based dispenser.
On top of all, one of the main holders of RIGH shares is Baron Capital Enterprise, Inc. (OTCMKTS:BCAP), which converted old debt into 750 million RIGH shares. Given that RIGH has announced 69 million shares outstanding, this is a huge threat of dilution and would mean selling at the right positions. BCAP is also a skull-and-bones marked company on its OTC profile, for overly aggressive promotion. RIGH, being unable to file on time, so far kept to itself the information for the much larger convertible debt.
But at such a low stock price, it is almost unnecessary to mention such stories, as volatility would be almost the same in any case.
Latteno Foods, Corp. (OTCMKTS:LATF) has been fighting an uphill battle at this price range, when even the biggest promises and potential don’t protect the shares from rapid drops. LATF ended almost without change this Wednesday, at $0.002.
So while newcoming investors may state that RIGH is just right as a new and hot marijuana play, the stock is most likely defunct. This does not exclude a new jump of similar proportions to the one on Tuesday, but it is best to avoid RIGH unless you can also afford deep losses on selling.
