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You are wrong....
*Company has surpassed 2013 revenues of $16 million by showing $18 million as of September 26th with 3 months left in the year and a projection of $25 million for 2014.
The Growth this year is anemic compared to last year and most of it can be attributed to the first 14 branches that tapped out their revenue growth before the peak labor season ended this year. I will be thoroughly surprised if revenue this year actually gets to $25 million.
Hmmm.... Going from $16 million to $25 million in 12 months is anemic? Considering that the majority of their branches, as of today, have been opened for less than 12 months, I would say that is anything BUT anemic. However, as these branches develop a client base and mature we should see some exciting revenue streams in the near future!
You are wrong....
My facts regarding LTNC are meaningful NOT meaningless.
*Company has gone from 14 to 32 branches in 2014
By going delinquent on over $1million in payroll taxes and accumulating over $2.5 million in convertible notes.
[b]Hmmm.... What to think about a company that reinvests every penny that they have in order to fuel their growth?
Factually, the past IRS issue is just that THE PAST. The growth in 2014 has zero to do with any previous IRS obligations.
Here's my question, has LTNC accumulated notes or raised capital in the amount of $2.5 million dollars? Is the glass half full or half empty?
That $2.5 million is what helped the company develop a very large regional footprint in the U.S. while showing great promise for continued growth, revenue stream and eventual net income, in both the short and long term. DUH!
Any start-up company trading with a limited operating history trading on the OTC market will succumb to the same method of raising capital. IT IS THE ONLY OPTION AVAILABLE in today's OTC market. That is, unless you're willing to sell off 80% of your company for a few million dollars knowing that you will be delivering a $100 million dollar revenue generating machine in the next 3-4 years.
Don't you know?
When things are simply made up you can state that a .0003% drop in price in LTNC is a HUGE SELL OFF!
Why? Just because we say so!
Facts need not be mentioned when trying to make a point regarding this company.
Joking? No, I'm dead serious and these are the facts that support my comments.....
Labor SMART:
*Company has gone from 14 to 32 branches in 2014
*Company has surpassed 2013 revenues of $16 million by showing $18 million as of September 26th with 3 months left in the year and a projection of $25 million for 2014.
*Company has bolstered its corporate infrastructure with additional proven management in 2014.
*Gross profit margins have increased by 8% going from 15% to 23% so far in 2014.
*Company is now showing positive EBITDA.
*Losses as a percentage of revenues are declining.
*Company continues to accumulate over $2 million in assets. The majority of which are cash from receivables.
*Company has ponied up the money and is now self-insured which will bring about $350,000 to the company's bottom line.
Additional factoid:
We know that the only reason that the stock has suffered a sharp decline is because of an error in judgment by allowing two separate note holders to convert out of their notes. This temporary infusion of shares into the marketplace is responsible for the short term downward sell pressure the company has been experiencing.
Because everything I have mentioned is based on verifiable facts it is QUITE EASY to see that the decline in stock price has NOTHING to do with the company's operations. DUH!
Interesting point....
Again, if we are talking about a company that is showing triple digit growth, triple digit revenue production, asset accumulation, increasing GPM's, positive EBITDA and a proven business model and we can buy the stock today at a fraction of where it was trading at 2 weeks ago then that is called.....
A BUYING OPPORTUNITY!!!
The sell-off isn't a real sell-off. It's people paying themselves back on loans that were made. These loans are what eventually propelled the company into doing the numbers they are doing today. Like it or not, there is a very plausible and explainable reason for the shares coming into the market.
Ultimately, all it has done is make LTNC a better buy today than what is was two weeks ago.
As far as toxic debt conversions....
Let's just deal with REALITY and the fact that this is the only type of financing out there for young start-up companies in the OTC market. I would love to see someone prove me wrong by showing me an OTC company with limited operating history that has pulled off a conventional form of financing.
So in dealing with REALITY we know that this is part of the risk that we take when investing in speculative stocks that trade in the OTC market.
RISK = REWARDS
RISK = LOSSES
Either way, there is ALWAYS an element of risk!
For Labor SMART with their business model, competent corporate infrastructure and proven track record I like my chances on the long term with this company.
It's like my Uncle use to say, "If it seems too easy, there is something wrong and probably illegal going on."
The road for Labor SMART, while although impressive, has been anything but easy!
You are wrong....
There is a substantial difference between not liking a stock because of the way it trades, possibly any technical aspects as it relates to its trading history or the charts (even though I do not believe that OTC stocks are chartable) AND tearing a start-up aggressive growth company apart by micro-managing from an arm chair quarterback position.
From an operational standpoint Labor SMART has continuously followed the correct procedures that anyone with a business acumen would expect to see and in order to grow their company.
Perfection is not a word that is expected with young growth companies. If you never make a mistake you will never truly be successful.
That's a fact.
And...
If it weren't for those paltry notes then we wouldn't have the buying opportunity we have today.
It's like I have stated in the past, "Adversity creates opportunity."
Now, if the stock were down because of any type of negative news, disappointing results or dismal future, that is a LEGITIMATE reason for concern.
Yet, if the stock is down and the company is still the very same company that it was two weeks ago, that is a buying opportunity!!!
You are wrong....
It's very easy....
Labor SMART runs in a very specific niche market of the labor industry. ON-DEMAND labor is far more costly than the general day labor business.
Although the company tries its best to strategically place themselves in geographically desirable areas, every once in a while, they will be faced with an OVER ABUNDANCE of cheap labor that is readily available.
Labor SMART has proven that they have a very adaptable learning curve that allows them to grow with very few mistakes. But to think that a company will never make a single operational mistake is unreasonable.
1 branch not meeting up to expectations out of 32 total branches are pretty good odds in my opinion.
You are wrong...
I don't know what crystal ball we are looking in to but what I see is a company that has gone from 19 million shares to 33 million shares over the course of 3 years.
Notes will be paid off and once what's left of these paltry notes that were allowed to convert the stock should bounce back quite nicely.
As far as use of the word "pump" I didn't know that any time we state an actual fact that this is considered "pumping".
YOU ARE WRONG!
You are wrong....
The price of a stock is not indicative of the success of its operations. PERIOD!
Is that a fact?
Seems like just a few short posts ago the mood was very different about the optimistic future of LTNC.
Fair weather investors should not bother to make investments in Labor SMART or the OTC market in general.
I find it simply amazing how "risk aversive" people actually are even though they are making speculative investments in the market.
Best Advice:
Do your due diligence on a company. If you like it and/or it's undervalued under current market conditions, then accumulate when it's up and accumulate when it's down. If the company is successful then eventually you will win!
The "herd" mentality of buy when everyone is buying and sell when everyone is selling is not a recipe for success when speculating in the market!
Enough said!
AWESOME!!!
cpw13154
Yes, I believe the company realizes that it was a mistake to allow two specific note holders to convert their debt. From what I understand, the notes are very close to being retired.
With a current share structure of only 33 million shares the stock is waaaay oversold and should bounce back very easily as they continue to put out good news concerning their growth.
YOU ARE WRONG...
The fundamentals do not show any of these things!
You won't get an answer so I'll answer for you.
The incident in question happened over 20 years ago 3 days after Mr. Schadel turned 18 yrs. old which legally made him an adult.
In this country, you are innocent until proven guilty which is why what you may be arrested for is not necessarily what you are convicted of.
At the end of the day, Mr. Schadel was in the wrong place at the wrong time and with the wrong type of friends. For this, he had to serve a few days in county jail and was given probation. Since then, Mr. Schadel has never had anything more than a traffic citation.
No matter how many times we want to regurgitate this story, the outcome will always remain the same. Old and irrelevant news used to manipulate and assassinate the character of a legitimate business man, who to date, has done a very good job in growing his company.
I personally do not see the correlation between what a person did as a stupid teenager and where they stand in society today 20+ years later.
The only thing I believe in are the facts. Oh, and I mean actual facts NOT opinions that are stated as though they are facts!
DD2Gain
Is that a fact???
DD@Gain
Actually, there are wayyy more positives than FACTUAL negatives...
Positives
There are branches.
Branches are being added 18 additional or 128.5% this year alone!
Revenue is growing by triple digits
Self Insured which drops more money to the bottom line
Improving EBITDA (Which means they are posting positive EBITDA)
Gross profit margins up from 15% to 23% in the last 12 months
Losses are declining on a revenue percentage basis
LTNC is now curtailing high risk low profit business in exchange for low risk high profit business.
Over $2 million in cash assets
Corporate infrastructure is filled with proven executive level management from their billion dollar competitor
Negatives
*Millions in floorless convertible financing - Millions as in a little over 2 million?
*Revenue growth is in no way keeping up with branch growth and certainly not keeping up with 2013 performance. On the contrary, revenue growth is reflective of the company weeding out its clientle which is reflective in the 8% gain in GPM's and the company is still looking to hit $25 million in rev's for 2014 as opposed to $16.1 million last year.
*Repeated tax issues and over $1 million in delinquent taxes resulting in an IRS installment agreement for an undisclosed period. Factually, the company is no longer considered deliquent by the IRS. This is a situation that has been resolved and under their agreement CANNOT be repeated in the future.
*Undisclosed IRS tax liens If it were undisclosed then how do we know about it? Hahaha...
*Millions in debt - Hmmm... An aggressive growth company that is in debt? OK!
*No institutional investors - Institutional Investors ARE NOT allowed to invest in the OTC market. PERIOD!
*No traditional financing - We will never see traditional financing for an OTC company. Much less, one that has been operating for less than 3 years! PERIOD!
*Extreme risk associated with self insurance considering LTNC's very limited capital - YIKES!!! Better not let the insurance company that underwrote their self-insurance policy! Heck, what do they know???
*EBITDA likely inproved only because of self-insurance programs. Actually, the company became EBITDA positive BEFORE they became self-insured. We can look forward to the company's positive effects from being self-insured to show up on their balance sheets in their future quarters.
*Sudden doubling of the AS Hmmm... Going from 100 million to 150 million shares authorized is not a double nor is that amount very concerning.
*A PPS in freefall- Adversity creates opportunity. A cheap stock is a posiitive in my book!
How sweet...
That is what is considered to be withholding public information?
A public company is only obligated to release information that is deemed a "material event" (positive or negative) in the eyes of the SEC.
We didn't see public dissemination of this IRS matter because Labor SMART's accountants, auditing firm and SEC counsel did not find this to be a material event. Obviously, the SEC concurred because it was not necessary for the company to put out an 8-K filing. Again, Labor SMART is projected to produce $25 million in revenues this year.
We now know that LTNC has an agreement in place with the IRS, they are now in good standing with the IRS and under the terms of the agreement, LTNC has to maintain a current status on all their IRS obligations. Which means that shareholders need not be concerned with them ever falling behind in payroll taxes again.
As for the IRS lien? Well, that is standard operating procedure. But again, a non-material event when you consider that the IRS didn't feel it necessary to take a first position on the lien. They are essentially just another creditor on the balance sheet.
As a shareholder, I find zero concerns with the above stated matters. If anything, I have more confidence in the situation knowing that they are being held accountable on a going forward basis. So if I don't care while having skin in this game, why would anyone else want to make a big issue out of what amounts to nothing?
And yet....
After pointing out all these "conversions" LTNC only had a whopping 27.2 million shares outstanding as of August 06, 2014 which was two months after the conversions were reported.
Ohhh, how scary!
Hmmm....
DD2Gain
Is that a fact???
Funny how when someone has something positive to say about the operations of this company, they are considered a paid pumper. I wonder what I should call someone who puts out false and baseless information on this company?
WOW, just when I think I've seen it all....
Expeditor13
Actually.... The recent numbers are showing positive results as the business continues to grow.
As we continue to see exceptional growth and fantastic revenue production, we are also seeing increases in their gross profit margins, EBITDA positive on their balance sheets and increased asset accumulation while their losses are going down on an increased revenue percentage basis.
These are very promising and positive trends for a young aggressive growth company. DUH!
Hmmm.... Interesting view I just don't understand how it applies to LTNC.
Being arrested and being convicted are two completely different things. Enough said!!!
Hmmm...
I'm a little confused with the contradiction:
cpw13154
Hmmm....
I would like to see some concrete evidence stating that Mr. Schadel was ever in possession of a gun, loaded or unloaded, PERIOD!
Once again, I read these fantastical statements and every time I ask for verification my request go ignored.
Hmmm... I can't imagine why???
If we are going to make serious accusations, then I think I have the right to see unequivical and substantiated proof.
Again, unless he had the "Dream Team" as attorney's when he was 18 years old, there obviously was a significant reason why he only served days not years in jail!
Personally, if I were making statements as facts, I would be the first one to pony up the evidence in order to bring credibility to what I have to say. Afterall, to me, credibility is everything!
Hahaha...
A loaded gun???
Please furnish me with the court documents proving that statement!!!
Trust me, it doesn't exist!
People don't get put in jail for days when they commit robbery with a deadly weapon.
So easy for us to wrecklessly throw things out there without a single shred of evidence to back up incredulous statements.
Yes....
He served days, not years, but days and given probation. Again, for something he did as a teenager over 20 years ago.
It must have been the crime of the century!!!
At least it seems as though that's what some would like us to believe!!!
Since Obama is an admitted pot smoker from his college days at Harvard I say we go after him next!
LMFAO!
Same old inaccurate news LOL!!!
IS THAT A FACT????
If this is the case then maybe I can be enlightened as to how a company like LTNC who only has 150 million shares authorized is diluting their company to 250 million shares?
I would also like to know how a financing that was completed on Aug. 18th 2014 can be issued free trading shares without a Registration Statement with the SEC???
LTNC a scam? Hahaha....
Anyone doing an ounce of due diligence can see that this is a real company with real assets, branches, clients, etc.
Accuracy equals credibility in my book!
Hahaha....
I guess we see why it is soooo important to do proper due diligence before jumping the gun with questionable statements.
I went to the link and saw that the filing was in relation to a recently announced financing for $1,100,000 done with a group of Accredited Investors.
Besides the fact that we have a minimum of six months before anyone could convert, the Agreement has a floor set at .15 cents, a pre-payment option and various clauses that the company could elect in order to circumvent dilution.
This so-called POS diluting machine has shown a consistent pattern of paying off notes and the shares outstanding have gone from 19 million in 2011 to 28 million in 2014.
Even more interesting is the statement that Labor SMART is diluting to 250 million shares when they only have 150 million shares authorized.
Knowledge is power!
Although the stock is down at a 52 week low, there have been many times where this stock has traded both up and down. It's not as though this stock traded straight down like a rock dropping from the sky.
Fact is, stocks go up and stocks go down.
What's most important is the fact that this company has grown five times in size since it reached its all time high of .80 cents and is ever so close to finally showing net income.
I have always found that if there is nothing wrong with the operations of a company yet the stock is trading out of favor, then that is usually the best time to accumulate.
Adversity creates opportunities in the market.
I have always been a strong believer in the "Contrarion Theory".
For those that have never heard of this it is a simple investment strategy of buying and selling stocks against the herd mentality.
So buy when the street is selling and sell when the street is buying.
ADVERSITY CREATES OPPORTUNITY!!!
I believe that LTNC fits this motto.
JMHO
It's very easy to process....
Just because you are arrested for a crime doesn't mean that the crime fits the label.
Case in point, I had a friend who got into an argument over the phone with his ex-wife regarding his two young children. At the time, his ex had a temporary restraining order against him. His ex (out of spite) recorded the conversation and contacted her local police dept. Even though he never threatened her and the discussion was soley about his children, he was arrested for felony AGGRAVATED STALKING, which is standard for anyone who violates a protective order. He spent the night in jail (I know because I bailed him out) and he will forever have an arrest record showing he was arrested for aggravated stalking, even though the case was eventually Nolle Prossed because she actually violated her own Protective Order 32 times the preceeding weeks with calls to him before his phone call to her.
When I think of felony Aggravated Stalking I think of someone who is going to do serious time in jail not a single day.
When I think of Armed Robbery I think of someone who is going to do years in jail NOT days. I'm not justifying anything that Mr. Schadel may have done when he was young and obviously stupid. However, it doesn't seem as though the crime was nearly as serious as the label considering his incredibly light sentencing.
As for banks financing growth not debt?
Labor SMART has had and continues to show PLENTY of growth. I'd like to see one young aggressive growth company that hasn't created debt while consistently showing triple digit growth.
JMHO