Latteno Food Corp. (OTCMKTS:LATF) Kicked Out of the Marijuana Index
Latteno Food Corp. (OTCMKTS:LATF) has one major point of attraction for investors in the MMJ sector- its extremely low price, which has staged significant daily runs in the past. Now, as LATF was depressed by a long sliding trend, buyers are coming back at the $0.007 price range.
The other positive trait of LATF was its participation in the Marijuana index. This opportunity was just shaken down, as there was a review of the inclusion criteria. From April 16th, stocks with a price under a penny will be under review, subject to removal without notice. Since LATF was known for its inability to hold onto penny prices, being sold off periodically, the ticker disappeared from the index.
For now, LATF answered with a new PR message, stating it opened a Medical Marijuana evaluation office in Los Angeles. LATF claims it retained doctors expert in herbal medicine and medical cannabis, who would refer clients for medical marijuana cards. The only problem is the PR message speaks in the future tense- that the office would soon be staffed and supplied. But we have no way to know how the plans are developing.
In addition, LATF mentions the acquisition of a delivery company tailored to the needs of the legal cannabis business. Unfortunately, the delivery firm will only be shipping out edibles. We don’t know how LATF is doing in terms of gaining its own license and actually producing the range of edible products that it promised. At least the website presented sells real products from other producers and offers delivery for most orders, but we can’t know when this would be accounted for in the bottom line of LATF, or whether LATF will remain a go-to pot stock for investors seeking an easy entry into the pot stock boom.
As for the Marijuana index, after a few days of losses, some recovery was seen, as the net daily loss shrank to 0.1%. Most companies were in the green, reacting to more than one week of pessimistic moods. The biggest winner was IMD Companies, Inc. (OTCMKTS:ICBU), with more than 44% in net daily gains. That would have been a very usual gain in February, when most tickers doubled or tripled easily, but compared to recent weeks, the climb seems more dramatic. ICBU is currently at $0.08, and the climb came at the end of a steep downward trend.
The losses were limited, and Vape Holdings, Inc. (OTCMKTS:VAPE) felt the most painfully, still correcting its relatively high price, sinking toward $7 as the very high corrected positions were unsustainable.
While LATF may be attractive, investors’ forums also see the company as a charade that is not really in capacity to produce and sell its own cannabis products. The biggest incentive to sell is the fact that LATF is no more indexed. Only a few months ago, LATF was habitually in the triple-zero range, and it is not impossible that a lack of support combined with short selling and general pessimism could drag it there again.
So while LATF starts to seem like a bargain, there is no guarantee that the whole sector would recover any time soon.