Latteno Food Corp. (OTCMKTS:LATF): End of the Brief Recovery

The sudden comeback of Latteno Food Corp. (OTCMKTS:LATF) stopped just as suddenly, with the ticker wiping out some of the gains made on Monday. At double-zeroes, LATF is certainly capable of big moves, moving nearly 180 million shares to add more than 100% in price in the past two days.

The otherwise ambitious food provider could show very little for its future plans:

• $1,000 cash

• $116,000 total current liabilities

• $267,000 revenues

• $47,000 annual net loss

Not even the medical marijuana plans could manage to lift the stock to its initial levels around 20 cents a few months back. Not even the promotional emails landing now and then, the latest one from about a month back. Stock Legends took up the underpriced share for just $1,500, an almost negligible campaign. At the same time, LATF was busy posting PR messages on food orders and the edible medical cannabis business.

As of tomorrow, LATF will be delivering the promised stock dividend to loyal investors, two new shares for each 100 shares owned. At these low prices, the dividend may not amount to much. Still, LATF is seen as a potential buyout target, and a potentially profitable company that would offer edible products with medical marijuana. LATF could also potentially benefit from further loosening of laws around the possession and usage of cannabis, as more states join the trend.

Restaurant tickers such as GrillIT, Inc. (OTCMKTS:GRLT) rise on promises of future locations and success, but a promotion too hot results in the reverse effect. But the campaign for GRLT was quite different from the LATF noise, focusing on the food angle.

LATF chose to enter the medical marijuana fray just as the sector was running flat, with bellwether Medical Marijuana, Inc. (OTCMKTS:MJNA) hovering for months between 16 and 20 cents. Other selections in this industry were having a more dramatic time, correcting sharply after the initial boost of promotions.

If you are still looking at LATF for its relatively accessible price and the potential to grow several times in a short time, a double-zero stock is perfect. But keep in mind that to reach those levels, LATF shed more than 95% of its value, burning most of previous investments.