Labor Smart Inc (LTNC)

[kmikesara]

not paying payroll taxes is no different than not paying income taxes because it will cost you more to borrow the money than the IRS charges. Look, to build a business this quickly requires enough branches to justify the infrastructure required to expand, and vice versa. The Company has been stupid about its financing, but so far has outrun bad conversions and managed to pay its notes when due.
So what you call stupid was a strategic choice when you are faced with a grow or die scenario, or at least a grow into company that merits public status and is not just a local yokel.

It takes time for new branches to make money, and I suspect that some new branches won't work out and some will do very well, time will tell.

Anyway, the issue isn't revenue growth, it is clear from the numbers rather than the commentary that there has been substantial growth. The issue is when will that growth enable to the Company to start reducing its reliance on the high interest convertible debt. That's the question and the answer to that will determine whether the stock doubles in the next quarter or not.