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A joke??? Really???
Hahaha.....
GO AHEAD AND SHOW ME!!!!
Hahaha.....
Possibly, with all the extensive knowledge that we must have relating to SEC rules, guidelines and regulations, we can have a detailed explanation with supporting SEC statutes showing how the company disclosing that a relatively small note with a lender being paid off and told to a concerned shareholder would be a violation of insider trading laws????
Hold on, I'm going to grab some popcorn for this response.
Can you imagine if everyone picked up a phone before giving ridiculous opinions about Labor SMART?
DD2Gain
YOU ARE WRONG!!!!
DD2Gain
If it's WRONG then it's NOT worth paying attention to.....
DD2Gain
Insider information???
Hahaha....
No, more like a mixture of COMMON SENSE and calling the company in order to get information!!!!
Can you imagine if everyone picked up a phone before giving ridiculous opinions about Labor SMART?
We need to pay attention.....
Wasn't the pps .045 when the "single", evil toxic note holder was done converting? LOL! All sorts of credibility there.
IS THAT A FACT????
Most investors that have watched this from a distance knew something would happen sooner or later... This, or a split, bankrupt, whatever... I figure it for a co exist between him and the financier (one of them) to scam the others... Although, they may all be the same, just different names through family members.. Never know how deep a scam can go and all the trusting souls that believe it was legit...
You are wrong.....
If you did your homework then you know this guy borrows money at a 50% rate ? THat he puts out PR's that disclose up ticks in revenue, but never mentions the cost of revenue.
FOR WHAT A NANOSECOND??? Hahaha....
Please! Let's use what the average trading range for Labor SMART this year and not one short term run that the stock made.
Labor SMART has consistently traded in the .20 cent range since the beginning of this year! DUH!
The conversions that were so graciously pointed out began both before, during and after the stock made its short term run.
In effect, all the conversions that were done had little to no effect on the price.
And, while we're at it....
Even with that long dangerous looking list of conversions, at the end of the day, when all the dust settles, we are looking at a company that only has 35 million outstanding and a PALTRY 18 million share float!
With increasing gross profit margins, EBITDA, triple digit growth, revenues projected at $25 million this year and NET INCOME looming in their very near future, I don't need anyone to tell me that LTNC is a bad investment at .04 cents a share.
PLEASE!!!!
THANK YOU FOR PROVING MY POINT!!!!
You see, sometimes we fail to think things through because of our desperate attempts to make a fruitless point.
The example of all the conversions done between January 2014 and July 2014 prove my point exactly!
As a matter of fact, somewhere between all those conversions the stock actually went up.
It wasn't until LTNC made the poor choice of allowing Asher Group to start converting their note that we saw a very sharp decline with the price of the stock.
Now that we have identified the problem and know that Asher is to be a thing of the past over the next couple of days, we can look forward to a sharp rebound.
YOU ARE WRONG ON EVERY LEVEL....
cpw13154
So a business plan that includes not paying the IRS the payroll taxes is a solid plan?
HMM so the business plan that continues to add to the already struggling debt is a solid business plan?
HMM so to continue to borrow more and more from the loan sharks is a solid business plan?
HMM to keep adding more places when its clear by the numbers all the additions are not coming close to supporting expansion is a smart business plan. I would think the fact that you had to close Houston tells you all you want to know about there business plan. Houston was the biggest city they were in and they couldn't make it work there
The fact this CEO tried to sugar coat the numbers and make it appear things were so good when it was obvious people saw through it is all we need to know. Record revenues LOL. if that's the case then you have 15 or so venues doing nothing and he needs to close them.
A question that begs an answer.....
cpw13154
And just what are we basing this info on. Didn't see this in any financials. Sounds like again we just make up things as we see fit. We have not seen a negative effect?
We have not seen a negative effect?
So we see all the talk about why we feel the price dropped from .20 so why the drop from .80. /quote]
We saw several buy recommendations by stock promoters in a very short period of time. I do not know who was behind this "campaign" but I do not happen to believe in a stock promoters ability to have a positive impact on a stock over an extended period of time. One thing I do know is that the decline was not due to any conversions.
BECASE ITS A BUISNESS PLAN THAT WON"T WORK AS THE CEO IS AN IDIOT
Tmyz.... Useful information....
Unlike other unfounded statements I have read, there is no Armageddon in store for Labor SMART nor will we ever see the stock trading in the sub-pennies.
There is a very distinct reason why we saw the recent decline in the price of the stock and I can sum it up in two words "Asher Group". They are the primary reason why hedge funds have such a horrible reputation on the street. Why Labor SMART thought they would be treated differently is BEYOND ME. However, it is what it is and the damage is done.
The positive thing is that Asher is DONE! They no longer have an outstanding note and no longer can convert a single share of LTNC. I would estimate that they are still long about 500,000 shares and once they are done selling over the next few days we should anticipate a fairly nice rebound.
As someone who has expertise in investment banking, not all hedge funds (convertible note holders) are bad groups. They all have a specific criteria that they adhere to in order to determine the type of investment they make into a company. Things like growth, revenue stream, ability to meet projections, news, etc.
If a company fails with their story, these hedge funds will be very unkind as they attempt to recoup their investment as expeditiously as possible. However, for the select few that follow through and do what they say, hedge funds can be very kind since they want to continue to fund and make monies with a successful company.
This is why we HAVE NOT seen a negative impact with the price of LTNC in the past when they have selectively allowed conversions to take place. While it is unfortunate that LTNC made a bad decision, I look at it this way, had they not allowed Asher to convert, we would not have the opportunity to buy stock at .04 cents a share. This is very much the same company that it was when it was trading at .20 cents 3 weeks ago.
I would like to remind everyone that the reason most companies go public is for the ability to raise capital with stock. Labor SMART has done an incredible job of growing their company by reinvesting their gross profit margins and by investing all capital raised back into their company.
At the end of the day, I estimate LTNC continue to show triple digit growth and will have about 35 million shares outstanding and 18 million shares in the float. That is an INCREDIBLE share structure for a company that is trading at .04 cents a share.
Haha...
And this statement is based on what facts???
Sheeesh!!!
A little education goes a long wayyyyyyy......
cpw13154
Ya think. Did we happen to see the sell after hours for 180,000 shares.
YOU ARE WRONG.....
There is no "pump and dump"
Only REAL NEWS that can be backed up with facts and a few savy investors that know a cheap stock when they see one.
RED ALERT! RED ALERT!
Before you head to the basement to avoid the Labor SMART "implosion" we are being told about and the soon to follow Zombie Apocalypse think about this....
For all this "talk" of toxic debt and convertible notes this company only has 33 million shares outstanding and LESS THAN 15 million shares in the FLOAT after 3 years of trading publicly.
How many times in our lives do we get to buy a stock with this type of share structure, trading at .04 cents and projecting $25 million in sales?
Going sub-penny? YEAH RIGHT!!!
WOW!!!!
And..... With all these conversions LTNC still only has 33 million shares outstanding while trading at a whopping .04 cents a share!
Seems to me that the single biggest problem this company ever had was the share structure being too small when they started out.
Now that they are finally putting shares into the market we are suppose to view it as a negative???
33 million shares out with a .04 cent share price on a company that is going to do $24 million in revenues and is increasing their GPM's while showing positive EBITDA?
YES! I LOVE IT!!!!
I guess we should forget that the single biggest asset of being a public company is the ability to sell shares in order to raise capital!
Shhh.... Here's a secret..... EVERYBODY DOES IT!
Doesn't seem to ever end.... YOU ARE WRONG!!!
DD2Gain
2013:$1million in toxic notes, 2014:$2million ADDED!!!
Researched and verifiable for anyone who can read filings. lol This is like shooting fish in a barrel.
Thank you for this opportunity. I cherish moments like this.....
DD2Gain
BWAHAHAHA!!! First of all, did I say when the conversions took place? No...
lol...Investors who actually study this stock are aware that last year's total convertible debt through Q3 was about $1 million.
YOU ARE WRONG....
Slight problem with this theory:
lol...Investors who actually study this stock are aware that last year's total convertible debt through Q3 was about $1 million. The 50% that converted could have been at .10 and caused only another 5 million shares to be dumped. You know, like when the OS Moved from 22 million to 27 million.
I expect a 500,000,000 AS and 300,000,000 OS by 2015Q1 with another $3 million in toxic debt added. At that rate this company is headed straight for an RS in 2016...just in time for foolishly stubborn longs to realize they lost everything.
YOU ARE WRONG....
DD2Gain
SPECTACULAR INCREASE IN TOXIC DEBT EXPECTED IN 3Q!!!
I'm guessing $500k, but $1million is certainly possible.
YOU ARE WRONG.....
OVER $1million IN DELINQUENT TAXES!!!
Easy answer....
The convertible notes are very well diversified with no real concentration held by any one party.
Additionally, the notes are staggered, so as they come due the company has the option of prepaying.
Most importantly, this is a company that will do close, if not over, $25 million this year and is projected to do over $40 million next year. With that type of revenue stream the company has the ability to pick off notes.
I'm not going to say that there will be zero dilution over the next several months, but if you look at their history, the company has gone from 19 million to 33 million in over 3 years of being a public entity. That is not horrible dilution for a company that has been forced to do convertible note financings since its inception.
Additionally, the company predicts showing net income over the next several months, which should have a significant impact on the type of financings they will be doing in the future. Of course, the best thing the company can do is get the hell out of the OTC market and uplist to a larger exchange. Then they can get Institutional support.
Either way, as long as the company continues to focus on its operations, this stock will be a good long term investment.
YOU ARE WRONG.....
The paying off of notes was spotty, at best. Last year, Schadel paid about 50% of the loans (many inexplicably only partially amortized) while the balance converted.
YOU ARE WRONG.....
Considering that Labor SMART has opted to prepay their notes 90% of the time over the last 3 years combined with $25 million in revenues this year and a projected $40 million in 2015, I seriously doubt that we have to worry about anyone converting $2 million in stock.
Nice try, but not realistic at all.
Waiting for "the world" to start buying the stock before accumulating a position is called having a herd mentality.
I would rather be a contrarian and buy before the world realizes what a great opportunity LTNC is at this price.
It's called smart investing.
Labor SMART is ten times the company today than when it was trading at a higher price.
That just makes it a much better buying opportunity.
Thanks for bringing it to my attention!
You are wrong.......
As a public company Labor SMART is only required to report material events to the public and its shareholders. Their situation regarding taxes owed never has risen to the occasion of a material event.
I will rely on Labor SMART's accountants, auditing firm, SEC corporate counsel and the Securities Exchange Commission in determining what is and what is not material to the company!
Yes, we can continue to attempt to make a major issue of the situation (yawn), but no matter how many times we want to yell and scream about it, it will never change the actual facts.
Additionally, this matter was handled and resolved through tax experts who represented LTNC in resolving this matter. The Agreement between the company and the IRS supersedes what the standard operating procedure would be in going after a company or individual for back taxes.
This is a very transparent company but that does not mean they will furnish 100% of their business to the public just because someone wants them to.
YOU ARE WRONG....
I'm not going to waste my time calling Transfac to ask a stupid question on a matter that is established by standard IRS operating procedure. There is not a shred of evidence that Tansfac has "first position" to the IRS in the event of a tax lien. Such an arrangement would have to be specifically arranged between the lender and the IRS on a case by case basis.
How completely ridiculous to try to advance the notion that a private corporation has (by default no less) priority over the IRS to assets for recovering public funds.
Awww.... Something so simple???
I got an easy way for you to know....
I'm sure we would both agree that their can only be one first position regarding a lien holder. Correct?
That being said, anyone can look up the filings and see that a first position lien is being held by TransFac, the company which provides LTNC with their receivable financing.
That is TransFac's standard procedure when providing credit facilities to their clients.
Don't believe me? Give TransFac a call.
You are wrong.......
From the inception of the company, LTNC has fallen within its revenue projections. 2014 projections fall in line with their original estimates of $24 million for the year.
We cannot use a boiler plate methodology that was created for the sole purpose of getting the specific negative result we seem to want to see.
If they company's only purpose was to be concentrated solely on revenue production then things would be a little different.
However, the company has obtained enough revenue stream to start focusing on increasing gross profit margins, which leads to EBITDA and eventually NET INCOME!!!
In other words, would we rather invest in a company that is producing $100 million in revenues and losing money or invest in a company doing $75 million and showing net income?
The recent culling of business in order to gravitate towards low risk/high profit business is an excellent example of where this company is headed.
Like 2012, 2013 and 2014, the year 2015 is setting up to be another record year and should be their best.
You are wrong...............
Every penny of the $2.5 million that LTNC has raised has gone back into the growth of the company.
How else do you go from:
2 to 32 branches?
$165K to a projection of $25 million in 2014?
Develop a client base in excess of 1,000?
Employ over 3,000 temporary laborers?
Develop a strong regional footprint?
Hire a high quality and proven executive level management team?
Schadel's fantasy is actually becoming a reality and a force to be dealt with.
I have proven and given articles, data and statistics which show that the business model that LTNC is using is effective and working as expected.
The laws of reality are going to have to be dealt with when realizing the positives that LTNC is producing and are seemingly being ignored.
You are wrong....
It is what it is....
Labor SMART has an agreement with the IRS. Because of this, the IRS now considers the company fully compliant with all their tax obligations. The Agreement also insures that LTNC will always be current with their obligations.
There are no IRS Liens. Only a single lien which is standard operating procedure under the terms of ANY agreement the IRS makes. It's not even held in a first position so the IRS doesn't seem too concerned with Labor SMART's ability to pay on a going forward basis.
But let's continue to ground this puppy into something more than what it will ever become in regards to a legitimate concern.
There is no such thing as a PERFECT start-up company.
*Company continues to accumulate over $2 million in assets. The majority of which are cash from receivables.
Great! Oh...but those darn losses and liabilities. And toxic financing. And IRS debt...
Can you imagine? A young start-up that has grown from 2 branches and $165K to 32 branches with a projection of $25 million within 3 years of operation,that has collected losses and liabilities along the way, while attempting to build a $100 million company with a national footprint?
You are wrong.............
*Losses as a percentage of revenues are declining.
Already addressed with gross profit margin.
LTNC's losses declining as a percentage of revenues, like the increasing gross profit margins, have ZERO to do with the LTNC becoming self-insured. The reason for this is because there hasn't been enough time for the company to experience any meaningful effects from becoming self-insured. Losses had slowly been declining before the company became self-insured.
Fact is, losses have been declining because the company has increased its size, generated more revenues, matured more branches and increased gross profit margins significantly.
A legitimate question deserves a legitimate answer.....
*Company is now showing positive EBITDA.
So....? How far are we from net profit?
Based on their business model, once they increase GPM's to over 22% this should give them positive EBITDA.
Once they show positive EBITDA and the company obtains critical mass in excess of 40 branches, we should see net income.
So the answer is....
Close, very close!
You are wrong.........
*Gross profit margins have increased by 8% going from 15% to 23% so far in 2014.
Yu-huh. That's because of becoming self-insured. Wait until the medical claims roll in that there is no money to pay without convertible financing.
This is impossible because the company increased its gross profit margins (GPM's) BEFORE they became self-insured.
Let me R-E-P-E-A-T
Labor SMART increased their GPM's BEFORE they became self-insured.
This means that there is zero correlation between the LTNC's increasing GPM's and their becoming self-insured. However, we should see some exciting benefits on the income side from the monies now saved with becoming self-insured.
Well, if we really want to know....
*Company has bolstered its corporate infrastructure with additional proven management in 2014.
Really? Who? We need only take a look at the "management team" on the Labor Smart website to see who "they" are. here's that link: client.irwebkit.com/Laborsmart/management-team. Here's the board of directors (all two): http://client.irwebkit.com/Laborsmart/board-of-directors
I couldn't think of anything better for a potential shareholder to do!
It will take relatively little due diligence to realize that the majority of their executive level management team have all had prior experience and success in the On-Demand labor market. We're talking former Regional V.P.'s. The majority coming from a former penny stock called Labor Ready which is now True Blue a $2.4 billion dollar NYSE company trading at $24.00
With all this proven experience under their belt, I would imagine that their learning curve in growing the company is minimalized by their previous experience.
Oh Yeah, we got stuck with this guy on our Board Of Directors:
Matthew J. Rodgers
With over 30 years of management and executive level business experience, Matthew J. Rodgers brings expertise in the areas of Revenue Growth, Large Account Management, Strategic Planning, Operations & Sales Management, Customer & Market Driven Solutions, and Team Building.
During his tenure with Labor Ready, Inc. (a division of True Blue, Inc., a NYSE listed company), Mr. Rodgers was a critical contributor to the growth of the company from 325 offices and $300 million in revenues to over 800 offices producing more than $900 million in revenues. During his tenure, Labor Ready's EBITDA grew from $14.6 million in 1997 to $35 million in 2003. Prior to his departure, Mr. Rodgers maintained full operations accountability for the U.S., Canada, Puerto Rico and the United Kingdom.
Can you imagine what they brainstorm for LTNC???