Labor Smart Inc (LTNC)

[DD2Gain]

This company is tanking and DESPERATE!

The latest PR for July boasts a 30.4% increase in revenue YOY.
Compare that to June's 52%
May's 68%

Anyone else see a dramatic pattern? THAT'S A 60% DROP IN REVENUE GROWTH FROM MAY!!!

Take whatever profit you can (or money you have left) and RUN! This company can't pay its taxes and evidently the clients are well aware of Schadel's stupidity with the IRS and are steering far clear of him. The revenue growth is declining faster with each month going into what are supposed to be accelerating summer months and the paltry $320,000 in monthly revenue from "higher risk business" doesn't come close to making up the loss in revenue growth.

Schadel's "business plan" is complete bunk...smoke and mirrors. Some of it made absolutely no sense while the rest is just flapping jaws with nothing really to say. Consider this gem from today's PR:

Among the 14 branches open one year or more at July, 2014 revenue was $1,595,534, essentially flat in a year over year comparison. However, revenue in branches that were open one year or more were impacted by the company's decision to discontinue low-margin, higher risk business, which represented an average of $320,000 in monthly revenue.

Revenue has been flat ALL YEAR for the first 14 branches and declining for the newest branches. Gee, pretty sure I said that already despite people adamantly saying otherwise. Funny how he didn't mention that decision to cut business in May when he was all giddy about "Historically Strong Months Commence". Just like he didn't mention problems with the IRS in the 2013 10K and didn't even provide full disclosure in the 2014 1Q.

Ryan Schadel is a snake! Don't let him take your money unless you are experienced at trading penny stocks!