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HAHAHAHA, "the ask is starting to drop"...that's rich... There are billions of shares backing up whatever you see "left" on the ask. Go ahead and tell me I'm wrong and I will explain to you what convertible notes are, and why 50B shares are about to be authorized.
Back to the schadels!! Everyone load up quick for the huge run to trip zeros! Oh, that's right, you can't.
Schady, to begin with, stated an RS was his preferred method of uplisting, and was part of the plan all along. Then the price tanked, and now he says he doesn't want to RS at these levels -as if the pps will ever increase, with 55B shares owed to note holders-. But then again, he also said the 1B AS increase was only for protection, right before he raised it to 20B. I don't think he had a clue then, and I don't think he has a clue now, of what's going on. It's anyone's guess as to when or why this clown will make his next move.
What'd I tell ya'? Sooner than I thought, but transparent enough.
Numerous times the number and terms of the loans made to schady have been posted here. All you have to do is read them to see why there is no coming back. Once the notes become due in rapid succession, the holders are going to start converting so fast it's going to make your head spin. He can't pay under the terms of the loans, and not all of the holders are going to want to refinance him. He will be left with no choice other than to authorize the necessary number of shares, then sit back and watch as every single one is gobbled up and sold off. So, you're right that things are about to turn around. I'm sure when that time nears, you will see many more positive posts here telling you how much you are going to lose out on. Because that's how it works. If you're selling garbage, you have to convince people to buy it somehow.
Recipe for small business failure:
You build a company in a growing sector that seems to be doing well, you want to expand, but you don't have the cash flows to support expansion. You go to the bank to get a loan, and they reply that you haven't solidified your stance in this space to the level that they feel is necessary for them to place their faith in your model. A.K.A. "You're not big enough". The bank is smart enough to see that rapid expansion is not conducive to solid returns, given your model. You disagree. Instead of putting your nose to the grindstone and trying to increase revenues, you grow a chip on your shoulder so big that you forget you are trying to build a business and focus instead on trying to prove to the banks that you have your very own pair of big boy pants. So you throw a hissy fit and reply with "I'll show them whose not big enough" and proceed to seek funding from corporate raiders whose only ambition is to make themselves money. You actually state in a PR that you underestimated the effect that convertible notes would have, and then begin to spin a convoluted web of lies and engage in deceitful behavior to try to save your sinking ship. You spend 25M to make 20M, and then tout your "record revenues". All the while maintaining that you have a plan to repair the share structure. That plan, apparently, includes adding more toxic debt, increasing the AS to a level that is 20X what you raised it to two weeks before when you said they were only for "reserve", stop paying taxes and start making up bs companies to absorb your tax problem, or something like that. You give your dad 80,000 a year to do nothing, you promote your girlfriend to operations manager, and you force out anyone on the board with any knowledge about how to run this business. .
But I'm the one who doesn't know anything. Ok.
BTW, If you consider the measure of the worth of someone's opinion to be derived based on how long they have been surfing penny stock message boards, then you deserve everything Ryan Schadel gives you. You should definitely empty your savings and bet it all on this magnificent CEO.
Exactly.
This is why I am always wondering why people get all excited about those huge volume days. The fact that a million shares can be bought for nothing, and that shares are converting for less than nothing, clearly indicates that any huge volume day is just the result of giddy investors buying their lotto ticket, consisting of brand new shiny shares freshly printed by The Schadel Charity, but in reality are simply buying the debt obligation of the company that the note holders no longer want. The debt needs to be eliminated. No upward movement in price is logical with such a huge number of shares on the float and so many more in que waiting to be taken by note holders and sold to the unwitting. To the tune of 50 Billion. Many notes are due in November, and not all of the lenders are going to let them refinance, but they may sell them to Command Center in order to recoup some of their losses. And I think we all know where that leads us.
$$$$$$$--*poof*---_______
I don't consider the exact amount of the unpaid taxes to be the operative concept here. It is the fact that he collected the taxes from his customers, and then failed to pay the IRS the amount owed. This was never his money to do anything else with. He is supposed to act as a custodian of these funds and to pass them on when the time comes. Instead, he chose to spend money that was never his to spend. In doing so, he has shown that he is not responsible enough to follow a simple rule like "don't steal from the IRS". But your investment is safe...because of this outstanding CEO, and his track record of success.
That's going to be a tough one, I think. Maybe I should offer to loan him $500. That should get me half a billion in the schadels.
I have a prediction: Sometime in early 2016 LTNC bounces back big-time. Get ready to make %1,000 gains or more! Sometime around March next year, the 52 wk high will be 0.0001, which will be a tremendous %10,000 bounce back from the 52 wk low of 0.000001. Get ready to load the ship!!
I agree with that!! I have never before in my life seen such a dismal performance by a CEO be met with such praise and admiration from investors. I get speculation and I get a pure lotto play, but to laud the person responsible for this mess as if he merits being called "great" is misinformation at its height, and also deceptive, but also hilarious. Someone's getting paid alright.
For all intents and purposes, you might as well assume there are an infite number of 1's "left". How many times has the ask been described as shrinking, and how many times has that meant anything at all? This will continue until every drop has been sapped from the unknowing until a reverse split happens, thereby reducing current holders' positions drastically. If it ever does, miraculously, move to 0.001 or even 0.01, it is all but gauranteed that a reverse split will happen. This essentially means to me that even as it moves up, it is only getting closer and closer to being worthless. Best case scenario, if there ever is a bid, you will be able to get out of your position. If it moves up through higher trips, the selling will likey push it right back down. If it endures that, and moves up further, remember that Ryan Schadel has stated he doesn't want to RS at THIS level. He has stated that he does want to RS at higher levels. So as the pps gets higher, you are ever closer to RS. Do you really think he will spend his own money, or that of the company to repair the share structure when it is just as easy for him to spend your money to do the same? Really? He has already been involved in a robbery once before, this is right up his alley, except he can do it "legally" this time.
What makes you say this will take off? Is there a basis for the claim that this stock is going to the moon? I would really, genuinely like to know what information anyone has that makes them think this will do so well? I'd love to be shown what I am missing here.
"Great CEO" does not describe Schady. Not by a long shot. What would lead anyone to believe that Schady is "Great"? Lou Gerstner, Steve Jobs, Indra Nooyi, these were/are great CEOs. Schady is a farce.
Great CEO...LMFAO
Is this really back to the Schadels?!?
"If we cannot generate adequate cash by implementing these steps, we plan to obtain additional cash through the issuance of equity or debt securities"
HAHA,the games continue...
Really?!?! A $1 Billion valuation?? Wow, you must know something we don't
Next week might bring an announcement that Schady will finally follow through with his statement that he will perform a reverse split and that substantial dilution will result. His words, not my opinion. The minute that this comes off the Schadys (otherwise known as a pps of 0.0001)the note holders will be converting at blinding speed. And then what happens? They are going to dump whatever they can, driving the price right back down to Schady land
The only problem with this logic is that if he knew what he was doing, this ticker would have uplisted a long time ago. He had good revenue before he sank the ship. He had ample time to turn this company into something worth while. He had the chance to keep this ticker respectable instead of plunging into the doldrums and remaining there.
The AS is in fact 20B shares. The CEO reported this number shortly after raising it to 1B before that. It is absolutely true and has been reported by the company. But if you want to look at the outstanding debt, it would take a lot more shares than that to satisfy all of the note holders, should they all choose to convert at the level that they are being given shares at. Now, since we haven't seen an update for so long, we can only work with the numbers which were last reported. He may have paid some off since, or, although it is very unlikely he would be given the chance, he may have acquired more debt.
You are right, it is hard to get financing when your business is in the toilet. That is what got him in this mess to begin with. Traditional sources of financing told him that he didn't have the revenue stream they were looking for. Essentially, that he wasn't big enough. So, what did he do? He grew a huge chip on his shoulder and proceeded to dismantle the structure that was reasonably sound until that point. He borrowed from anyone that would give him anything regardless of how aggressive the conversions would be just to prove that he was a big boy and deserving of the Banks' respect. Instead he proved their point that he was not ready for what he was trying to do. He fired the accountants when they told him his business was failing, the only member of the board that knew anything about staffing left with a quickness, he promoted his secretary to director of operations and gave his dad 80,000/year for an IT position that, judging by the updates on the website, is still vacant. Now the loan sharks wont even give him any money and he is being taken to court for default.
Next?
Oh, don't tell me, I know what your rebuttal will be: GOOO LTNC WOOHOO!!!
I'm not implying that one should assign the same importance to mathematics here as in more traditional investments, I'm saying that calling it a decrease in revenue is a totally valid statement, especially when you specifically state that decrease is averaged per branch. As for the profit, don't forget that every dollar they made in 2014 cost them more than a dollar. Not the most sustainable business plan. Even though some tickers do well despite all the seemingly bad things going against them, if you pay out $1.05 for every $1.00 you make, eventually you will go away.
Definitions:
Average:
In colloquial language, an average is the sum of a list of numbers divided by the number of numbers in the list.
This will help to understand revenue as being averaged per branch.
If revenue for the first 15 branches in 2013 is x1 and the revenue from the first 15 branches in 2014 is x2, and the revenue from the newest 15 branches in 2014 is x3, then for there not to have been a decrease in revenue for the first 15 branches the following must be true:
x1 <= (x2+x3)
Since this is not true, one of two scenarios must have been true.
Scenario 1: 15 new branches produced some revenue:
If he bought or built 15 new branches, they must have produced something. Something that is non-zero. If the new branches had non-zero revenue, that means that the branches that produced revenue before the acquisition of the new locations must have revenue that dropped off sharply from the year before. If not, there would have to be an increase in revenue due to the new branches producing new revenue and the old branches not experiencing a decrease in revenue.
Scenario 2: 15 new branches produced nothing for six months:
If scenario 1 is not the case, and the "original" 15 branches are responsible for the total revenue for 2014, then that means that there were at least 15 branches that did zero business for at least six months. Some of these locations were already established staffing agencies replete with customer lists and industry contacts.
This is why the revenues are said to have decreased hugely when they are AVERAGED PER BRANCH. Which is, in fact, a fair judgement of performance since some, not all, of these branches had ample time to start producing SOMETHING.
Either way you choose to look at it, it is a purely dismal performance by management to add to the long list of missteps taken by this company's management.
Yes, just as he was determined to show the banks "who's not big enough" when they refused to lend him money by buying branches he couldn't afford, with money he couldn't pay back, to lenders that couldn't care less, ultimately leading to his diluting his investors into oblivion and then trying to sell it with a statement that he had "underestimated" -how impossible that must be- the effect that increasing the AS to 20B shares would have. What? Really? The CEO didn't realize that what he was doing was the very definition of dilution?! He underestimated that?!
After all that, you think Schady is the right guy for the job, huh? Unbelievable. I agree with the lottery ticket stance that must be taken with tickers like this, but usually you wait for a disruption, such as a change in management, or otherwise, that would herald a movement in price. I got into this one due to a bet with a friend over whose screener would lead to the most profit based on one $100 pick, sight unseen. Unfortunately, mine picked LTNC so there is no one here who would like to see the price move up more than me, but the absolute blindness to logic and rationale are laughable at best, at worst, a thinly veiled attempt to drum up interest by those who would stand to profit from such interest before the big RS happens and everyone loses their entire investment. No matter, they have so much going for them, right?
Schedule 13 G filed by command center:
"This reporting person does not intend to exercise all or any part of the conversion privileges under the Note. Command Center, Inc. has commenced a lawsuit against Labor Smart, Inc. in the U.S. District Court for the Southern District of New York, seeking to recover all monetary amounts due under the Note. The filing of this lawsuit may be viewed as an election by Command Center to seek monetary damages rather than common stock."
This is a link to a veritable gold mine of information concerning LTNC. From here, I trust that anyone can get to all of the information they repeatedly challenge others to provide for them. If you don't want to read the financial and organizational filings, you can't pretend to have a valid opinion about the stock price. http://yahoo.brand.edgar-online.com/default.aspx?companyid=856879
Command center stated very plainly concerning the LOI that their intent was to collect on the delinquent note through the bankruptcy process. They stated that this would be the best remedy to get themselves paid. They don't want to own LTNC, and their 2014 net loss of 5.1 Million, they want LTNC out of the game. Don't be surprised when more of these toxic notes are sold off by the original creditors in order to recoup some of their losses. And to address one of the most hilarious things I have ever read: The reason Schadel can't buy the loans for pennies on the dollar himself is because he is the responsible party for re-payment! He couldn't use the $5,000 to cancel anymore than $5,000 worth of accumulated interest. That would be like you not paying your credit card bill, then calling the bank and asking if you can just pay only a little bit of it to settle the entire debt. That may happen eventually, but only after your debt has been sold to someone else, for pennies on the dollar. And as for the claim that if the total debt is 4 Million, then anyone with 400,000 could just gobble it up, this is only an available option if every other note holder gives up and cuts their losses also.
That's precious. Just get here? No link, no proof needed. The handwriting is on the wall. You could talk until you are blue in the face about how many mistakes this guy has made financially. That's like asking for proof when someone tells you that OJ did it. But that doesn't really tell the whole story. This guy thinks nepotism is a city in China, and he promoted a secretary to Operations Manager. If you want to toss some cash to your girl, fine. Give her a job and a title and a cushy corner office, but... Operations Manager?!? It seems his financial ineptitude is only exceeded by his lack of business and organizational sense. I've got my popcorn and I'm expecting a really good show when this thing finally cracks the hull and sinks to the depths.
..................................PUMP
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Pump
AAAAANNNDDDD..........
.......................DUMP!
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................PUMP
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Pump
AAAAANNNDDDD..........
.......................DUMP!
So, I am supposed to post something here to acknowledge that I made multiple user accounts in order to satisfy the leaders of the site and make it so they will allow me to post messages to the boards I think.
I made multiple usernames because something kept malfunctioning and I couldn't log in. I realize that this was wrong and I should have jumped out of the window when I made my first multiple account. But, alas I had some things to take care of that day and then I just completely forgot to jump.
I grovel at your feet and beg for your mercy. Actually I just want to be able to go back to injecting some sense into the debate regarding LTNC.
HA HA HA HAAAAAH!!! Fell out of my seat man, good on 'ya. If Ryan Schady is reading posts on Investorshub then you are in worse trouble than anyone could disseminate here.
What statements like these are predicated upon, is the notion that Schady has any sense at all.
Immaturity: "I'll show them who's not big enough" Okay big boy, you showed them that you could borrow money from loan sharks and dilute the investorship into oblivion. That clearly shows his ego was put before any responsible decision making. Do you honestly believe that will change in the future? And who, now, after showing how badly he can screw other people out of money because of his immaturity would finance him? Oh yes you keep talking about "when the financing comes through!!" But you fail to acknowledge that he was seeking traditional financing before and they told him no. THEN he went and screwed it up this bad, and now they will say yes? They told him no BEFORE he racked up all this debt. What bank are you thinking that will look at the past six months and say, "Oh yes! we would love for you to lose some of our money too! We were so tired of watching you lose money for all those investors that we want in on the fun!!"
Lack of foresight: One million dollar tax debt. Guess what big boy?! When you pay people, you must reserve taxes. I know fifteen year-olds that understand this concept and comply quarterly. It's not difficult, put the money in a reserve account for fulfilling your tax obligation and forget it is there. Or if you do use it and earmark future funds to replenish that account, DON'T SPEND THE MONEY UNTIL YOU HAVE PAID THAT DEBT! Oversights like this are not acceptable from a person in his position. But you must believe that part of his character will also magically change overnight.
Lack of business acumen: Here we go again big boy! Loan...Sharks....Are...Bad...'Mkay? "I underestimated the impact that..blah,blah,blah" You didn't underestimate anything. You purposely sold everyone down the river by not acknowledging what these people do and how they do it. And the minute that he is able to take out more financing, regardless of the fine print, he will. He will do this because of his immaturity and his penchant for putting his ego before sound business decision making. Oh right, though, he will change this behavior after 30 days, I keep forgetting that.
Lack of fortitude: He can't muster the courage to be honest and forthright with investors. He is hiding behind rules that do not apply to his particular situation at this particular time. He is fully permitted to continue to publish regularly released updates to shareholders. Yet he lies and says he is following the rules of the review. As if we can't find and read the rules for ourselves and see that he is using the review as an excuse to wait until he actually has something good to say before he opens his mouth. Look, just give us the facts. Don't wait until you think you can sugar coat enough to draw more investors in, just give us the information that you promised that you would. At a bare minimum he is -without a doubt- allowed to update the OS. When things are going bad, you see the true character come out. And this too will change and all of a sudden he will start to act like an adult? Ha! Laughable man!
Just like PLKD? Or BTZO? Or TDEY? Or ECOB? Or DCAM?
wrong, wrong, wrong, wrong, wrong.
LTNC looks good?....wrong
Just think how a person can average down now!!! $18,000 for all 20 Billion shares!!
A ton of volume is almost meaningless when the pps is so low. Sure there are the gamblers, the misguided, the dim-wits, and the suckers, who just don't know or care, but it is not inconceivable to think that schady and his ilk are also tossing in a few thousand here and there to give the illusion of interest.
Well, you can't say you couldn't see this coming, or that you weren't warned.
This. Is. HILARIOUS!!!!!