Latteno Food Corp. (OTCMKTS:LATF) Excites Investors Once More
During yesterday’s session the stock of Latteno Food Corp. (OTCMKTS:LATF) finally managed to do a more decisive jump in the right direction. The stock surged by exactly 45% and returned to $0.0058 per share. Equally as impressive was the amount of shares that got traded for the day. Investors shifted more than 250 million shares which was seven times higher than the traded volume for the previous session.
Despite the significant recovery LATF is still sitting deep into the double-zero price ranges and is nearly 60% down from its recent highs. The company suffered quite a few setbacks and as a result their stock has been sliding towards the bottom for the past month and a half posting sessions in the green only occasionally.
The company was removed from the Marijuana index in mid-April when their share price fell below 1 cent. The two initial subsidiaries that were supposed to carry the marijuana side of LATF‘s business were both shut down without sufficient explanations. And although the recently created Rx Harvest Collective subsidiary has been offering marijuana edibles for sale in a couple of cities it is doubtful how profitable it is going to be.
Even yesterday’s PR which caused the spike in the share price was just a little more than a fluff article. In it the company revealed their new sex enhancement pill that is supposedly developed by Chines herbalists and acupuncture specialist. We don’t know what acupuncture has to do with anything but we sure know that these so called “sex magic pills” don’t actually have marijuana as an ingredient.
At least the seafood business of the company is still capable of delivering millions in revenues. According to the financial report for the first quarter of 2014 LATF had:
- $75 thousand cash
- $1 million total current assets
- $495 thousand total liabilities
- $3.7 million revenues
- $252 thousand net profit
These results may seem quite impressive on their own but the report revealed one extremely troubling fact – the devastating dilution of the common stock that is still taking place. At the start of 2013 the company had around 34 million outstanding shares while 12 months later that number had reached more than 3.1 billion. In January this year the authorized shares were 
increased from 4 billion to the massive 10 billion which allowed LATF to issue another 1.3 billion shares just for the three months covered by the report. If the dilution doesn’t stop the company will find it hard to support even its current prices.
increased from 4 billion to the massive 10 billion which allowed LATF to issue another 1.3 billion shares just for the three months covered by the report. If the dilution doesn’t stop the company will find it hard to support even its current prices. Prior to the start of yesterday’s session the Securities and Exchange Commission suspended trading in yet another pumped stock – Pingify International Inc. (OTCBB:PGFY). The promotion had a disclosed budget of $6.5 million and it is the first time a company touted by the pump outfit StockTips gets suspended.
