Latteno Food Corp. (OTCMKTS:LATF) Slides Back a Quarter Despite PR Promises

Latteno Food Corp. (OTCMKTS:LATF) is facing a strange weakness any time it approaches the one-cent level. Other companies of the marijuana sector were taken to higher positions, but not this one- a staple to investors, LATF has been taken up only to slide back on profit-taking. On Tuesday, LATF lost more than 25% to $0.0058, on rather active selling of $4.23 million. The good news is that LATF is having good volumes every day and offers an opportunity to get in and out of the position.

The bad news is that the inability to vault the one-cent levels means investors have low expectations and LATF is used for short-term flipping, within the frame of a few days.

True, LATF has been patchier with its press releases, but even after a new announcement, the ticker did not respond with strengthening. LATF announced that it already designed the packaging for its next cannabis edible, a jello-based product named NullFlam. LATF already plans a wide range of edibles, so this news hardly ignited interest- especially as LATF still has to show an improvement in its financial results.

Investors’ forums expect more news, as well as an overview of real sales of marijuana edibles already two months into a liberalized marijuana market in the state of Colorado. Still, right now LATF is caught in a general moodiness of pot stocks, as most are drawing backward, following a FINRA warning letter that too many stock scams flourished among the rise of legitimate cannabis sellers or growers. Also, investors note that LATF is pressured by short selling, and this might mean a demand for new shares to cover the short positions.

Still, LATF is in the optimal cross section of an underpriced stock that often delivers amazing daily surprises, and a long-term mover among the most active cannabis stocks. Other, newer selections cannot boast with such a record, as in the past week several names rose to prominence, only to slide back rapidly.

One of the fast movers was Resource Ventures, Inc. (OTCMKTS:REVI), renowned for its blatant revelation that it was getting into the cannabis business to benefit from the extreme demand for new stock offers. REVI grew by 800% on its most successful days, but since then lost almost 50% of its value.

The other disaster was Health Sciences Group, Inc. (OTCMKTS:HESG), another shady company with a dismal share structure, that nevertheless gained the attention of investors and staged an awesome drama, all at triple-zero prices. HESG reached $0.0008 on a sudden spike in volumes, but is now back at $0.004.

If you still like the exposure to LATF for its clear-cut business plan and the ability to soon deliver products, keep in mind that the sales results are still awaited, and that LATF is at risk for volatility. Avoid picking up LATF unless you can afford setbacks like the one this Wednesday, or deeper.