Latteno Food Corp (OTCMKTS:LATF) Remains Flat Despite Record Traded Volume
Latteno Food Corp (OTCMKTS:LATF) has been unable to get investors excited for quite some time. The share price of the company has been rapidly declining and in less than 3 months the stock has wiped over 80% of its value. In fact, LATF hasmanaged to hit the absolute rock bottom of the chart of $0.0001 on two occasions – on June 26 and yesterday.
Although LATF did drop to such record lows during yesterday’s session the stock managed to climb back up and closed flat at $0.0003. The unprecedented number of nearly 1.7 BILLION shares got traded during the session surpassing the monthly average of 73 million shares by more than 20 times.
At the start of June LATF published a new corporate update announcing some pretty interesting plans. In addition to their see food subsidiary Mekonza, which generates millions in revenues according to the financial reports, LATF are going to create another subsidiary called Latteno HEMP and are currently looking for a 40 acre farm in Colorado. The hemp subsidiary will eventually offer a line that will include shampoo, conditioners, Hemp massage oils, and hemp lip balms. The Latteno Science subsidiary that was created back in April is going to launch a line of products geared towards the pharmaceutical, nutraceutical, and cosmeceutical industries. As we said the PR contained some exciting stuff but it failed to boost investors’ confidence in the company in the slightest.
This may come as a surprise especially if you open the latest quarterly report and see that LATF finished the first three months of the year with:
• $38 509 cash
• $825 thousand total current assets
• $222 thousand total liabilities
• $3.2 million sales
• $253 thousand net income
So, LATF are not only talking about entering the hemp industry but they also boast a rather impressive balance sheet with millions in revenues and a positive bottom line. So why hasn’t their stock been able to move out of the triple-zero price ranges?
First of all, LATF have been playing the medical marijuana and hemp card for more more than a year with numerous subsidiaries being created without amounting to anything substantial. It remains to be seen if the fate of the most recent subsidiaries will be any different. At the same time the financial results of the company, although still encouraging, have experienced a dramatic decline. The annual revenues for 2014 dropped to nearly half of the sales for 2013. Compared to the same period last year the latest quarterly report shows that nearly all of the financial indicators on the balance sheet have deteriorated.
And if that wasn’t enough to convince you that LATF is an extremely dangerous stock let’s draw your attention towards the outstanding shares of the company. Between January 2, 2013, and March 9, 2015, the mind-boggling amount of 6.9 BILLION shares was issued. As of May 11 LATF reported 8.2 BILLION outstanding shares and if the rate at which new shares are being printed remains the same the company will soon reach its currently authorized amount of 10 billion shares. The CEO of the company has stated that there are no plans for a reverse split so if the issuance of shares continues LATF might be forced to increase their authorized shares even further.
The massive red flags demand the use of caution when approaching the company. Do extensive due diligence before putting any amount of money on the line.
