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DD2Gain WRONG AGAIN!!!
Let's not try to confuse anyone with junk spin and let's stick to the point!
DD2Gain
Nobody was expecting that an OTC company would be able to launch without some less-than-ideal financing, but to hammer investors over and over again with millions of dollars in toxic debt for unproven (and underperforming) acquisitions was foolish.
That statement cannot be proven because it never happened!
So no matter how we want to circumvent the facts you will NEVER be able to substantiate the statement!!!
I can't be "wrong again" if I haven't been wrong in the first place!
Maybe we can share our "business expertise" and in-depth experience in order to determine the proper way an aggressive growth company like LTNC should grow.
Go ahead... Impress me!
DD2Gain WRONG!
CPW13154 WRONG!!!
Sorry, but we would be better suited if we understood the term AGGRESSIVE GROWTH COMPANY.
I think the article that I put up gives a clear view of what its like to be a real company trading in the OTC market looking for capital.
I don't need to read unsubstantiated theories that do not apply to Labor SMART!
I've been saying this for quite some time....
THE DECLINE OF THE OTCBB FOR SMALL BUSINESS FINANCE:
https://www.linkedin.com/today/post/article/20141031200546-27697123-the-decline-of-the-otcbb-for-small-business-finance
For those wondering why Labor SMART can't just simply go out and find conventional forms of financings!
Sorry, but regardless of what the stock does on the short term real companies do not simply shrivel up and go away!
Soon, I will look back and laugh at those who couldn't decipher between a real company like Labor SMART from a shell company and only judged LTNC on its stock price even when it is apparent that the stock is way undervalued.
Labor SMART went public around May 20, 2011. I believe the initial shares were sold for .05 cents. This is when the company had nothing more than a business model and a plan. That same year, they opened 2 branches and had revenues of $165,000
Since then, Labor Smart has grown to 30 branches located in 13 states, serving a client base over 1,000 while employing over 3,000 day laborer's on a daily basis. Last year they did $16.1 million and are projecting $25 million this year and $40 million in 2015 for already established and matured branches. Their losses are made up primarily of non-cash write-offs and their percentage loss to revenue continues to go down.
The company has consistently shown triple digit growth, record revenues, increasing gross profit margins (15 to 25% and growing) and have recently shown positive EBITDA.
Has it been a smooth ride?
Well, no it hasn't. This is a start-up aggressive growth company with only 3 years of ground floor operations. I often wonder why I see people attempting to hold Labor SMART to the same standards as a well established business trading on a larger exchange? It's not, and to that end, mistakes will be made. However, without mistakes a company can never truly succeed.
This company has had challenges and continues to be victimized as an OTC company. This means no credible forms of financing, no broker/dealer or true retail market support, no institutional or mutual fund attention. That is what the OTC market has become through no fault of LTNC. This company should eventually apply for a listing to a larger exchange. They just need to grow a little more.
The lack of funding forced the company to raise capital through convertible notes. One particular note holder was a very, very aggressive seller and that started a domino effect.
I believe the company has now resided to allow shares to come into the market in order to eliminate the notes. Once the notes are gone this company should be able to start showing net income.
At last count, there were about 44 million shares outstanding with about 30 million in the float. A ridiculous shares structure for a stock trading under .02 cents a share.
So why do I think this will work???
Labor SMART's largest competitor Labor Ready now True blue (NYSE TBI) started as a penny stock in 1995. They have very similar business models and LTNC's first 3 years of operations show that it works.
The previous COO of True Blue, Matt Rodgers, sits on Labor SMART's Advisory Board and consults with the company. Labor SMART has 6 executive level and 10 mid and low level management executives who are previous executives from True Blue.
Mr. Rodgers alone was responsible for growing True Blue from 300 to 900 branches with close to a billion dollars in revenues. All other executives are experts in their field with proven track records of growing an on-demand labor company. Their experience and ability to meet and exceed expectations will be the key to the success of this company.
So where is the bottom? I don't know. I do know that LTNC is greatly undervalued, but the recent dilution and lack of true market support doesn't allow the company to trade in parity with its operations. However, wherever the bottom is, it will not even be close to where the top is going to be, as this company continues to grow.
OH PLEASE!!!
Are we SERIOUSLY attempting to make a comparison of a foreign non-reporting pink sheet company to a U.S. based fully reporting OTCQB company like Labor SMART?
This Chinese company had real revenues? Really? Why didn't they have REAL AUDITED FINANCIALS to prove it?
They made OVER $10 million per quarter but decided to trade in the pinks? The last time I saw a company that made over $40 million a year and traded on the pinks was.... NEVER!
Let me tell you when you can trust what you read on a Pink Sheet stock... NEVER!
They were a real company? I guess I should just assume that we went and inspected their facilities in Mainland China! Yeah right!
Great example and comparison!
The reason the response was a joke is because in order to answer your valid questions about Labor SMART intelligently, we must be able to read a financial statement and have very basic business acumen.
It seems that this has never been a requisite for making comments or theories about this company.
Well... YOU ARE WRONG!
I wish I could say I'm surprised, but really it is just one of many as it relates to facts and theories regarding LTNC.
Honestly, based on what I have read, I find that very hard to believe.
My word of advice still stands. A little education into the on-demand labor industry is a good thing.
Sorry, but you are wrong...
Talking to bricks?
First, the .15 cent floor was brought up in discussion for one note specifically.
It was never stated that this floor was a general agreed term for any other note that LTNC may have.
Possibly, we should take the time to read and understand before we comment.
JMHO
Word of advice....
Study the industry and learn about the business. Then we will know the answers to simple questions like why Labor SMART will be sitting with so much cash at year end.
Oh, I see....
So now we are playing the "if" game.
Kind of like "if" there is a Zombie apocalypse we will all be eaten alive.
Sorry, but I will choose to believe that "if" given the opportunity, Labor SMART will elect to pay the amortized payments in order to keep the .15 floor in place.
After all, they should be sitting on about $4 million cash by the end of this year.
Hmmm....
And what due diligence has been done that shows this company is anything less than a legitimate operation?
Surely, you can share something with us that will surprise us!
Crooks??? Ok, tell me why!
Sorry BUT YOU ARE WRONG GROWTHSTOCKS99!!!
If we ACTUALLY read the note in its entirety we would KNOW that the amortized payments have nothing to do with the payback of principle! DUH!
Instead of fighting me, TRY READING!!!!
Hahaha...... That's a good one!
Maybe you can explain to us novices how a company can "dump" shares authorized into the market????
Can't wait to see the answer to this!
I am wrong? Hahaha.... NOT!
I think we need to learn how to read a document IN FULL before we start going around calling me wrong!
There is a provision that provides for amortized payments. If the payments are made then the conversion reverts to a floor of .15 cents. Labor SMART has more than enough revenues to cover any amortized payments for monies already invested.
Not that it matters at this point anyways, since the note isn't even 90 days old and any payments made can't convert for another several months! DUH!!!
Redwood hasn't sold any shares of stock in LTNC. So what is the point? Trying to scare us???
Their note with LTNC has a FLOOR of 15 cents!
You think they are going to convert and LOSE money? DUH!!!
Nice try! DUH!
GROWTHSTOCKS99 YOU ARE WRONG!!!
Hahaha....
Sorry, but most investors do not need pretty pictures or slick graphics in order to make investment decisions.
Labor SMART's operating history and projections are the only thing necessary for anyone to make an investment decision at these levels.
However, if you would like some dynamic graphics and pretty pictures I'm sure I can turn you on to a whole bunch of OTC companies that circumvent an investors attention with a pretty presentation as opposed to actual operations!
Sorry, but taking history over insight is likened to the "herd mentality" and that is never where the real money is made.
It might be worth the time to look at the operating history and the operations as a whole, unless you are only looking for a flip.
IF WE READ LTNC's PRESS RELEASES THEN WE CAN EASILY SEE WHY CPW13154 IS WRONG!
I think better due diligence above the filing is in order.....
From Labor SMART's October 22, 2014 press release:
CPW13154.....YOU ARE WRONG!!!!
Here's an even more interesting tidbit.....
Before we go disseminating any additional less than credible theories, why don't we answer my very direct question?
CPW13154..... YOU ARE WRONG!!!
Why don't you share the intensive due diligence that has been done on LTNC in order to warrant a statement like that???
Can't wait to be impressed!
CPW13154.... YOU ARE WRONG!!!
YOU ARE WRONG!!!!
You cannot sell shares that are not issued and a part of the shares outstanding.
As of today, there are only 44 million shares issued and outstanding.
YOU ARE WRONG!!!
First, I think it's important to learn the difference between a fully reporting company and a pinksheet stock.
I know that I have brought it up SEVERAL times so that we STOP giving out erroneous informatiom about LTNC.
Second, there is not 10 Billion shares authorized. Another attempt to relay erroneous information about this company.
Of the 1 billion authorized there is only 44 million shares issued and outstanding. As an investor, this is the number I want to know.
I believe you will find part of your answer in LTNC's August revenue press release where they talked about culling their accounts.
From my discussions with the company, during their initial start-up they were very hungry for business and were willing to take lower margin business in lieu of volume. This high volume business worked fine in the beginning but also came with considerable risk because of the amount of receivables they were occurring.
Because the company has done such a stellar job with the exponential growth of their clientele, the company took a proactive approach by culling their client accounts in order to do away with their higher risk/low margin accounts and focused on increasing their exposure with lower risk/higher margin accounts.
This move was incorporated in their original business model and had been planned all along, once they achieved a diversified clientele and enough revenue stream to warrant the move.
One of the most positive aspects of this company is their corporate infrastructure. It's obvious that their moves are very similar to Labor Ready when they were in their "aggressive growth" phase. The significant difference is the scaled down learning curve because LTNC's executive management has been to this rodeo before and know the best strategic moves to make and when to make them.
Certainly having the previous COO of Labor Ready/True Blue on their Advisory Board overlooking their growth doesn't hurt either!
That's right.... An Uplisting
The share price is the absolute least of their concerns. Once they meet the criteria for an uplist on to NASDAQ or (more likely) AMEX they will have ZERO problems in having a registered broker dealer give them retail market support.
You see, the is a distinct difference between a company trading infinitively on the OTC and a company that meets all the requirements EXCEPT for the price of the stock.
That's why I say once they are prepared and announce their intent to uplist this company is GONE!
That being said, the smart long term investor is paying attention to their operations and not their stock price.
Let me help you with some answers to your very valid questions...
DD2Gain YOU ARE WRONG!!!
There is a DISTINCT difference in comparing Labor Ready (NYSE TBI) and Labor SMART as a public company and comparing them as an OPERATING COMPANY.
Because the operations have similar business models we have already seen and should expect similar results in the growth of LTNC's operations, which is very exciting considering that you can buy this stock at .03 knowing that TBI went from .25 cents to $27.00 a share.
However, TBI as a public company had many more advantages over LTNC because they went public as a penny stock back when the OTC market was respected by Wallstreet and the SEC. Raising capital was easier, gaining street support was MUCH easier, having mutual funds and institutions take positions in your company was possible. In other words, it was much easier for your stock to trade in parity with your operations back then. Obviously, this has not been the case for LTNC. Not because they are not producing but because they are a victim of what the OTC market has now become.
However, every quarter they grow closer and closer to qualifying for an uptick to a larger exchange and once this happens the days of buying this in the pennies will be gone!
DD2Gain YOU ARE WRONG!!!
First of all, Labor SMART is EXACTLY like TBI, they have similar business models and very similar growth rates.
LET'S PAY ATTENTION.....
I'm sorry but was your name attached to the quote I provided? NO!
The quote came from a statement made from 1337trades
If we paid attention we would know this.
Nope, that isn't a good example at all.
The company already acknowledge that the steep decline from .16 cents to .02 cents was because of a single note holder that liquidated in a very aggressive manner.
If we read their press releases we would know this.
However, sometimes adversity creates opportunities. That said, I find it appealing to be able to purchase a stock at a deep discount when the operations are doing well.
You need to do your own due diligence in order to make that determination.
DO NOT believe anything that you read on message boards when it comes to speculating with your own dollars.
Fortunately, Labor SMART is a fully reporting company and is fairly transparent, so you should be able to find lots of information regarding their growth, operating history and projected future.
Feel free to ask if you have a specific question regarding the company.