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LTNC is diluting shareholders to pay operating costs. Only people making any money are the converters. Convert at 11.43 cents sell for 21 cents. Good business for the converters. The rest of us shareholders are holding the bag on the way down. If the dilution continues and we end up with 30 million or so outstanding shares what is the stock worth? 13 cents or 15 cents? I will buy the converters stock for 15 cents or less. 25 or 30 cents is way too high.
Awake Awaken,
You should turn your light on when reading the 10Q. The stock was issued at the beginning of 2013 not last year.
On January 28, 2013, the Company entered into a Consultant Agreement for a term of six months for general corporate and due diligence services. As compensation, the Company agreed to issue to the consultant 300,000 shares of unrestricted common stock valued at $72,000($0.24 per share) in conjunction with the Form S-8 Registration Statement as filed on July 13, 2012.
On January 28, 2013, the Company entered into a Consultant Agreement for a term of six months. As compensation, the Company agreed to issue to the consultant 500,000 shares of common stock valued at $120,000 ($0.24 per share) of the Company.
Awaken wrote:
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Lol, please, the shares "issued to consultants", some 800,000 was done at the beginning of last year when the stock ran from .20 to .80, where do we think the volume came from on a stock that had a float under 2mil at the time. Just to clarify for those who are uninformed. Lets not over dramatize something that now might as well be irrelevant.
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nit2win, Bogus info? Really? Look at the 10Q.
The float has at least doubled from 2.4 million shares to 4.8 million shares. 1,042,000 shares from converts, 600,000 shares from an earlier convert, 800,000 shares paid to consultants.
The compant might have paid off 650ish worth of notes. But they issued new notes and now hold over 1.2 million of them. They also have showed they were unable or uninterested in paying off the recent notes (1,042,000 million shares) before converting.
If this converting is the beginning of a trend we are looking at around 10,000,000 possible new shares.
It is nice you were born at night but I fail to see what that has to do with the dilution to LTNC shareholders.
nit2win wrote:
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Great try but bogus and outdated information!
Yeah, there is soooo much dilution going on that the shares outstanding on the company have BARELY increased over the last six months. Which would be IMPOSSIBLE if we were seeing "tons" of conversions.
I love how we refer to the convertible notes as of the last 10Q but conveniently leave out the roughly $650,000 of convertible notes that were PAID IN FULL with no conversions as reported in various press releases AFTER their latest 10Q of September 30, 2012.
Yes, I may have been born at night, but I wasn't born LAST NIGHT!
If we are going to dish out information, let's at least make sure it is accurate!!!
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BuyLowIsGood, Here is some info on the converts and other dilution to shareholders.
BuyLowIsGood wrote:
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Any idea how many more converts there are?
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The latest 10Q lists $1,205,794 in convertible notes payable. If converted that could amount to around 10 million new shares. The company also pays consultants with free trading stock. 800,000 shares were issued for their services as listed in the 10Q. Quite a bit of dilution is going on.
If LTNC is unable to pay off toxic debt before it converts we will all be swimming in plenty of new dilutive shares.
This might be a good business with potential but I don't see the PPS going anywhere but down for quite a while. I would wait to buy stock from the converters at much lower prices.
OK Awaken, get your calculator turned on and do the math on the conversions.
Awaken wrote:
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Lol o.k., according to what was copied yesterday, nothing is being converted below .20c. Please provide proof, and please don't tell me it's less than 100,000 shares or something either if they've even ever been issued below .20. I dont believe things that have no proof.
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Here are just two examples:
On September 28, 2013, Evolution Capital LLC elected to convert 221,108 shares of common stock with an aggregate fair value of $61,910($0.28 per share) based on the quoted market price of the shares at time of issuance for $36,000 for principal and interest and $25,910 for debt discount.
Evolution has less than $36,000 invested in 221,108 shares. Part of the $36,000 is the high interest being waived on conversion. The debt discount is the difference between market price (.28 cents) and conversion price. Let's forget the interest for the moment and say they actually have $36,000 in the loan. $36,000 divided by 221,108 is 16.28 cents per share. So on this particular conversion Evolution can sell the stock at any price above 16.28 cents and make money. Sounds pretty good right? So how can we get this deal too?
Next example is:
On October 24, 2013, Evolution Capital Fund I, L.P. elected to convert 227,342 shares of common stock to convert $26,000 principal amount of a Convertible Promissory Note.
We wont know what the interest and debt discount is until the 4th Qtr filing. The deal happened on Oct 24, 2013. But it will be something like the previous. $26,000 divided by 227,342 is 11.43 cents per share. Nice payday for the converter.
Now all 1,042,000 shares converted have a similar story. All converted at substantial discounts to market. Plenty of overhanging stock for sale.
LTNC is not worth buying if convertible stock financing keeps happening.
These converters keep making money.
Convert ... Hit The Bid ... Make Money ... Repeat
Problem is the stock can go very low and these guys still make money. For the rest of us it is like throwing an anchor to a drowning man.
As long as there is profit in the stock the converters can sell. They might stop selling when the PPS gets to their buy price. What 11.5 cents? 13 to 15 cents?
Hey Sparky, over 1,042,000 shares converted at prices as low as 11.43 cents. Where do you think all the selling is coming from? This stock is going lower.
SparkyWells wrote:
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There are NO Converted shares as the financials indicate, I know certain people here have NO Idea how to read a little thing called financials as evidence of their ridiculous posts.
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Here are the details of the converts:
On September 5, 2013, Vista Capital Investments, LLC elected to convert 50,000 shares of common stock with an aggregate fair value of $17,500 ($0.35 per share) based on the quoted market price of the shares at time of issuance for $7,920 for principal and interest and $9,580 for debt discount.
On September 9, 2013, JMJ Financial elected to convert 60,000 shares of common stock with an aggregate fair value of $21,000 ($0.35 per share) based on the quoted market price of the shares at time of issuance for $9,504 for principal and interest and $11,496 for debt discount.
On September 19, 2013, JMJ Financial elected to convert 80,000 shares of common stock with an aggregate fair value of $20,800 ($0.26 per share) based on the quoted market price of the shares at time of issuance for $12,134 for principal and interest and $8,666 for debt discount.
On September 28, 2013, Evolution Capital LLC elected to convert 221,108 shares of common stock with an aggregate fair value of $61,910($0.28 per share) based on the quoted market price of the shares at time of issuance for $36,000 for principal and interest and $25,910 for debt discount.
On October 7, 2013, JMJ Financial elected to convert 75,000 shares of common stock to convert $11,250 principal amount of a Convertible Promissory Note.
On October 8, 2013, Vita Capital Investments, LLC elected to convert 50,000 shares of common stock to convert $7,500 principal amount of a Convertible Promissory Note.
On October 18, 2013, JMJ Financial elected to convert 100,000 shares of common stock to convert $13,128 principal amount of a Convertible Promissory Note.
On October 24, 2013, Vita Capital Investments, LLC elected to convert 60,000 shares of common stock to convert $7,848 principal amount of a Convertible Promissory Note.
On October 24, 2013, Evolution Capital Fund I, L.P. elected to convert 227,342 shares of common stock to convert $26,000 principal amount of a Convertible Promissory Note.
On November 12, 2013, JMJ Financial elected to convert 118,705 shares of common stock to convert $15,584 principal amount of a
Convertible Promissory Note.
Actually it's the longs that need luck at this point. Yes stocks move up and they move down. But LTNC seems to just move down. The last filings detailed a large amount of convert stock. That could be the stock that keeps hitting the bid. It looks like the teens are on the way. The way this stock sells off it might not take too long.
nit2win wrote:
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Hahaha...
Good luck with that one!
I'd like to see proof that there are ANY conversions currently being done at 13 cents!
Stocks move up and they move down. As long as this company keeps its course over the long term the stock price will do just fine.
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Looks like LTNC is going a lot lower. Sellers just keep appearing. Probably the 13 cent convert stock and buyers that came in on the pump promos that didn't work. Water always finds its level. Wonder if LTNC's level is 13 cents.
stark12 There have been 4 or 5 pumps this year. They just haven't worked very well. http://www.pumpsanddumps.com
LTNC mentioned on www.pumpsanddumps.com
Apparently a pump happened on Thu 11/21
11/21 was a big volume day. Somebody was able to sell some stock.
Convert stock maybe?
Well, nit2win, if you want to buy twitter go ahead. That stock isn't for me.
Stock price reflects the knowledge of the whole investor group. Prices will tell you when problems exist. The fees and rates this company has to pay for financing also speaks loudly.
LTNC is paying rates on their financing that loan sharks would love to charge. Some LTNC rates approach 100% annual rates. Ridiculous.
They have previously retired convertible notes. But the converts have started recently.
If there wasn't any overhanging stock LTNC would be much higher. Common sense and the stock price indicate there are a lot of sellers.
I happen to like LTNC. But I am long and wrong, not long and strong. Maybe they make it. Maybe not. Stock price, evidence of continual sellers and expensive financing costs tell a story that isn't all rosy.
nit2win wrote:
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PLEASE.....
STOCK OVERHANG? Give me a break!!!
This company has consistently shown the ability to retire notes without any conversions. Key word here is CONSISTENTLY!
Have there been a few sellers? SO WHAT??? This company FINALLY has enough shares in the float to where they trade volume every day.
The shares outstanding have BARELY increased, even with all the growth and funding they have done. The float is STILL ridiculously small for a company producing the numbers they have.
Yes, I guess in Nirvana we could sit back and anal-yze what the perfect OTC company should be doing, but it's a different story in the real world.
As for the ridiculousness of judging a company as a whole based on its stock price.... Ever heard of something called an undervalued situation???
Maybe we should all go out and buy Twitter at its high and wait until 2017 when they expect to be profitable!!!!
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OK guys, all you have to do is listen to the stock.
Overhanging stock:
Stock recently converted from 13 cents to 16 cents
Stock from people that paid much higher just looking for an exit
Stock that will be sold for tax losses
Potential converts still on the books (as recently as Oct 31, 2013)
Now are the converters long term investors? Doubtful.
The price action tells a lot. Anytime the stock tries to rally it has been met with selling pressure. It doesn't have to be listed on your Level II. Just watch the stock. It moves up a little and the sellers appear.
The stock is telling us something. .232 bid is not telling a good story.
I don't think you have to worry about the price shooting way up with all the overhanging stock for sale.
TJAI1c3a wrote:
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And if the price shot way up
We'd be getting "expert" analysis about how the company is being pumped. Gotta' love it.
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The stock price action speaks volumes.
LTNC can't rally without being met with selling pressure. There apparently is plenty of overhanging stock for sale. Letting people convert at huge discounts below the market will keep the price low to even lower.
Cheerleading is all very nice. I imagine all the cheerleaders will be very happy when the stock is available at much lower prices. I mean why not? You love the stock right? The converters definitely love the stock. Who wouldn't? Buy at a deep discount from market price and sell for a nice gain. Sounds good to me.
Problem is it is like throwing an anchor to a drowning man.
This stock is going nowhere fast.
Although it may continue with selling pressure.
1 - Continuing Toxic Financing
2 - Converted Stock Being Bought At Huge Discounts To Market
3 - Profitable Converted Stock Overhanging the Market
4 - 4th Qtr & 1st Qtr Expected Lower Margins Due To Seasonality
5 - December Tax Loss Selling
This stock is best ignored for a while.
They need to clean up their financing act.
Horrible financing has to stop. I like this company's potential but the financing is ridiculous. Look at the Oct 31, 2013 Iconic Holding convertible. Foolish financing. If payed off it will cost 35% in 180 days plus a gift of 60,000 shares. What is that like 100% annual financing costs? You can get a better rate at a used car dealer with a credit score of 500. Iconic can convert when they want at a 40% discount to market price. Just say the price is .30 and they convert at .18 cents. That will be around 600,000 shares coming at the market. CEO needs to start calling on Wall Street boutique investment banking houses. Get some real financing for operations.
Stock conversions between .13 and .16 cents per share. It looks like LTNC will continue to have plenty of overhanging stock keeping the price depressed for a while. CEO needs to stop with this type of financing. LTNC needs a real investment banking house to get involved. It is probably converted stock that keeps hitting the market. Buy at .13 sell at .26 cents. Why not do that all day long?
News Out This AM - Labor SMART, Inc. Surpasses Year-to-Date Revenues of $13 Million
http://finance.yahoo.com/news/labor-smart-inc-surpasses-date-115500596.html
This is a great little company. Very likely a great long term winner.
Job Postings For LaborSMART Positions
http://www.careerbuilder.com/Jobs/Company/Labor-Smart-Inc/
New Zacks Update - LTNC: Revenue Trends Strong At Labor Smart
http://finance.yahoo.com/news/ltnc-revenue-trends-strong-labor-113000218.html
New weekly sales record of $432,572
LTNC price swings are due to illiquidity. Typical of BB stocks. More interest will come in time. The business is really doing great. CEO has been discussing increasing margins in his latest news. This will be a great long term hold.
Just correcting your misinformation you posted that TBI is a Fortune 500.
TBI is not a Fortune 500 company. They are too small.
LTNC could sell for less than 20 cents before this dip is over. There seems to be very low investor interest. Some email Pump people bought stock and they will want out soon. They are probably sorry they got in at all. Showing pictures of the branch offices doesn't offer anything constructive. LTNC is not in the glamour business. Low to medium rent is part of their business plan. I have visited some local Labor Ready offices in Maine to get a handle on the operations of this type of business. Fancy office space is not needed. I agree with Awaken that we have an opportunity to buy in at a very early stage instead of waiting and buying at 5 dollars on an IPO. But it has a higher degree of risk to do so. This company has the potential to make investors some serious money. But it will be a long and bumpy ride. I have invested in many companies that lost money in early growth that eventually did very well. But I also lost money on some that couldn't make it happen. LTNC has potential. We'll eventually see whether we are right or wrong.
I would rather pay 1.00 than .02 for LTNC. LTNC at .02 would mean gig is up. 1.00 would mean things are good. But I will wait for 20 cents. There is low investor interest at this time. LTNC is drifting lower. Plus short term email campaign buyers will want out soon.
No rush to buy LTNC - Wait for lower prices. With low investor interest and expected large losses for 2013 and 2014 there is probably plenty of time to buy LTNC at lower prices. I might get interested at 20 cents.
Zacks expects continued losses through 2013 & 2014. Zacks estimates EPS of -.11 in 2013 and -.10 in 2014. Estimated net losses of 2013 (2,075,387) & 2014 (1,810,753).
Yes Awaken maybe the company will enlighten you soon as to the current float.
Float & Number of Shareholders are both stale data. Float is most likely a lot higher now than the 2.4 mm reported on Feb 13. Shareholder counts are not easy to get right. The 43 number probably is made of up the original buyers of stock. Go back to the original S1 SEC filing and you will see there were 34 original holders plus the CEO. So they probably make up 35 of the 43. The 34 bought their stock at .02 each. It was a technique for the CEO to go public and have the number of shareholders needed to get a market maker to register the stock to trade. If you ask your broker to send you your LTNC stock certificate you will be counted in the shareholder count. Otherwise the broker holding your stock is holding it in street name.
Looks like this stock could drift into the .20s range. Buyers that came in from the email marketing are most likely short term thinking. They didn't get a price runup and will probably be selling soon. I hope to buy their stock in the .20s if possible.
TBI paid around $400,000 per branch and on site location in their aquisition of MDT Personnel. 12 million in cash and 36 million in a note payable and assumed debt. TBI expects 200 million in revenue in the first full year of operation of MDT.
MDT had 105 branches and 15 on-site locations. Not sure what level of growth MDT was experiencing.
If LTNC can grow to the size of MDT Personnel maybe LTNC will be worth 48 million using the MDT aquisition as a bechmark. But at 14 branches currently it would appear the stock is fairly valued at around 5 to 7 million in market cap. Hopefully the CEO can grow LTNC to the size of MDT Personnel. That might mean a stock price of 2.00 to 2.50. We will see.
I agree. It does look like some heavy distribution is going on. I found LTNC several months ago and have recently started buying a position. I look for stocks under 10 million in market cap that show the ability to be a big mover. Believe me, there are very few on the OTCBB. This one looks like it can do it long term.
I like the CEO. He has his own money in the game. He thinks big. Plus he acts big. Even better. Business model works and is easily understandable. He just needs time and some money. I do understand his need for additional capital. But letting venture capitalists buy freely trading stock at half the market price can cap the stock price for a while. Plus Pump campaigns bring in very short term thinking investors. I hope I am wrong but I think I will be buying their stock over the summer at lower prices than they are paying today.