Labor Smart Inc (LTNC)

[sobe4life]

A perfect example of how when questions are asked and the truth is ignored....

cpw13154

August should have been a huge month for this company if in fact they were going to make a go of it. But in fact it was horrible. We can try and blame it on whatever we want but the truth is its not going to happen.

This is a perfect example of how the above statement is addressed and answered multiple times only to have the answer along with supporting documents completely ignored as though it was never explained in detail.

If we choose to ignore the facts which are supported by financial statements, case studies and industry related articles, then I believe it is painfully obvious what is taking place. It is a shame that so much time is wasted on the regurgitation of facts on a daily basis in order to pacify the micro-minority that see LTNC failing regardless of how many times reasonable and sometimes concrete explanations are given, only to have those explanations ignored.

cpw13154

What happened? this company should have revenues of 5 to 6 million with the addition of 16 new places and the maturity of the other 14 but as we see its not much more now with 30 as it was with 14. Look at August and then last August figures and we see why this company is not going to make it.

Actually, when we take a look at what the company is doing we see the following:

LTNC has already reached its 2013 revenues of $16 million in the first 8 months of 2014 with another 4 months to go.

LTNC has increased branch locations by 114% in 2014

LTNC continues to add executive level management with proven track records in the temporary labor industry

LTNC is still showing triple digit growth in asset accumulation

Gross Profit Margins (GPM's) have increased from 15% to 23% in 2014

LTNC is now showing positive EBITDA

I'm sorry but when I look at the company as a whole, I fail to see where this company is going backwards.

Again, I think it is important to mention that this is not a company that has stagnated or stopped growing. This is a company that has been showing and plans on continuing to show triple digit growth. That component is important in analyzing their financials because there is a distinct difference in determining a company based on what they have and what they are going to have. There is no such thing as the perfect start-up growth company. Each has its own set of obstacles which must be met in a variety of different ways. What is important is managements ability to address those obstacles while continuing to grow their company.

We have already addressed that they key to Labor SMART's success is the accumulation of critical mass in order to reach the plateau of revenue stream that will eventually lead to positive net income.

So far, so good!