Latteno Food Corp. (OTCMKTS:LATF) Sinks To Double-Zero Prices Once More
Optimism towards the stock of Latteno Food Corp. (OTCMKTS:LATF) seems to be slowly but surely dwindling and the company has now dropped below the 1 cent mark again. During yesterday’s trading it failed to recover and slashed another 6% of its price closing at $0.0091. The correction wasn’t that harsh but the 227 million traded shares for the session nearly doubled the amount from Monday.
For now though the decline is slow and gradual thanks to the ongoing influence of the marijuana hype. LATF was one of the earlier pennystocks to ride the hype wave and the stock was able to surge from $0.0004 to nearly 2 cents in less than two months. Well, almost any pennystock that switches to the marijuana enjoys a similar boost in share price but at some point they will have to start showing results if they want to keep their gains. And LATF has not been able to do that.
The company recently filed its annual report for 2013 and it contained some rather impressive numbers:
The company recently filed its annual report for 2013 and it contained some rather impressive numbers:
- $76 thousand cash
- $1 million total current assets
- $440 thousand total liabilities
- $15 million revenue
- $900 thousand net profit
Such results are an extremely rare sight in pennyland – millions in revenues, positive working capital and actually profitable operations. So why is then the stock not conquering new heights? The reason for the recent chart performance is the fact that LATF may describe themselves as a marijuana company, and they even were included in the marijuana index, but the company still has no operations in the industry.
The impressive revenues you see in the financial report were brought by their seafood subsidiary Mekonza Corp. while their marijuana initiatives have not fared so well. The marijuana collective Green-Cannabis was terminated back in February leaving LATF with only Valley Organics, a marijuana edibles subsidiary. The company even announced the NullFlam product and hosted a contest for best marijuana recipe through Valley Organics. On March 11 five new edible products were announced but suddenly in the most recent PR from April 4 LATF said that this subsidiary was also terminated and its site was shut down.
In order to keep calling themselves a marijuana company they formed a new subsidiary – RxHC Harvest Collective Inc. LATF‘s future plans and operations continue to be extremely vague. At the beginning of March they talked about a mysterious real estate partner but they have not even mentioned him since then. In the latest PR the purchase of a California-based cultivator and delivery service was announced but once again with no meaningful information about the deal.
Now, let’s return to the annual report for 2013 because it revealed something extremely important – the massive amount of dilution that has taken place during the past year. At the end of 2012 there were just 34 million outstanding shares while at the end of December 31, 2013 that number had turned into 3.1 BILLION out of the 4 billion authorized. But things get even grimmer if you take a look at LATF‘s official site. Although the increase of the outstanding shares to 3.7 billion in just a 
month is enough even on its own it is overshadowed by the fact that now the authorized shares are 10 billion.
month is enough even on its own it is overshadowed by the fact that now the authorized shares are 10 billion. LATF may have the appeal of a marijuana stock backed by a revenue generating operations in another industry but investing in them is extremely risky. Do you own due diligence and carefully consider all the red flags around the stock before committing to any trades.
Yesterday the stock of one of the latest additions to the marijuana industry – Dutch Gold Resources, Inc. (OTCMKTS:DGRI) suffered a massive crash. They lost more than 34% of their value and dropped back down to $0.0023.
