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Please elaborate.
Good solid updates. Building up the business for the long term. The flippers and day traders will be disappointed but a great investment for the next several years. Lots to look forward to here. Have come a long way from a year ago and just getting started. Reducing float. Gaining momentum. Not many .0001's that have a real growing business with this potential with a top CEO who has proven he can grow the company and will do so again in a timely manner.Great work Ryan. Thank you!
What does the 400M refer to?
There were audited 10K reports filed with the SEC before he went dark. You will soon be proven wrong and then we will never hear from you again. Can't wait.
This a real company that is making a major turn around. Agree with you that long termholders will be rewarded.
He's active on Twitter.
TSGL
I see that LTNC will own at least 51% of TSGL, per Ryan. However, I'm having a hard time understanding exactly what TSGL will be - just a shell company? It appears TSGL is selling all of its assets and liabilities to the buyer - which from the form shows Brian McLoone, etc. as the ones signing for the buyer.
The question is - what is Labor Smart's relationship to this buyer company.
Seems like we should be getting a PR here to explain this.
With news pending at any time the stock price could start climbing again never to look back. I think Ryan is on the move again and the days of stagnation are over.
Your statement - "He's buying because he needs to maintain ownership to save his job" - is not correct. He has full control of the company through the preferred stock he owns - no matter how many shares of common stock are issued the preferred stock will always have majority voting power.
He could issue himself shares as part of his compensation if he wanted to like a lot of other companies do, but he has chosen to buy in the open market with his own money. He never took any salary the first year or two and his current salary is not that high by comparison to other public companies. He took a bonus but again his total compensation including that over the last 4 years has not been out of line.
Nobody knows for sure how the next year will play out. Give him a chance and let's see what happens.
Possible favorable financing options.
TMYZ, I agree that there may be positive financing alternatives becoming available to the company which could put us back on the upward track.
Ryan's 1.6B shares at .001 would be worth $1.6M if my math is correct. However, these are shares he owns personally and this potential money would not directly be available to the company.
It's a fine line here Ryan walks between Ryan the shareholder and Ryan the CEO representing the company itself and all other shareholders. I'm sure he is acutely aware of this and gives it strong consideration when deciding which role to take actions in - i.e. - such as buying back stock.
I'm talking hypothetical here and in no way implying Ryan would do any of these options mentioned. However, it is theoretically possible if he did get a personal windfall that he could himself buy more shares or buy shares from the debt holders, in which case the total shares outstanding would not decrease at all.
The best for us other shareholders would be for the company to buy back shares and retire them or for Ryan or another backer to loan money to the company to do this or to retire the convertible debt.
I also agree Ryan's large purchase is a very positive first step.
That he has invested money he had in his pocket is a good sign. The benefit to us other shareholders may very well follow.
I agree based on current information publicly available and current share structure that .03 per share is not reasonable.
However, it is possible if the following happened -
1) Convertible debt issue resolved - restructured or refinanced or paid off.
2) Major buy back by the company (not Ryan himself) of 3 - 4 billion shares.
3) Business itself has positive news - continued growth, skills corp takes off, acquisitions, partnerships.
Remember this was a high growth company until the convertible debt and financing issues arose. It could start up again from where it left off.
Acquisitions - Staffing Companies
CCNI mentioned in their quarterly release that they were looking to make acquisitions, but that it was currently a very competitive market for this. Companies to be acquired are in demand and therefore may go for higher prices.
What to read into all this.
What do you think this short volume means - is it the convertible debt holders? Do you know the current balance of shares short - i.e. % of shares short?
I have a large investment here and also think the CEO is doing everything he can to fix the current share structure and convertible debt issue. I also agree that the fact he took money he had in his pocket and invested it in the company is a positive sign.
However, I do think there are a lot of unknowns at this point. A lot of the shares Ryan bought were probably additional conversions, so share count has probably increased again. We still have the convertible debt and company is still not quite cash flow positive although making great progress. Expansion is on hold till capital available.
If the company itself would buy back 1.6 billion shares and announce the convertible debt is no longer convertible (except maybe at a price much higher than todays price)then the stock price would rise significantly. All shareholders would benefit from this. I have been a little surprised Ryan hasn't been able to find a long term financial backer / partner up to now.
With the current share structure and convertible debt, unless some major positive news is announced, it would seem to be hard for the price to rise back to a much higher level.
This may be just the first step. I also agree Ryan did this because he feels it is a good investment and he will make money on it. One other possibility is a possible backer / partner wanted Ryan to have more of his own money invested - more skin in the game.
Last sale was .0005 and small volume. Highest price with any volume was .0004. Maybe you are seeing an ask price which probably doesn't mean a lot.
New convertible notes with a conversion date 6 months or a year out could be a good thing - it would buy some time and provide funding to stop the current conversions at this very low price. It is obvious current convertible debt holders are driving the price down to almost zero so they can convert to an astronomical amount of shares. To me that is the biggest threat to the company and it is immediate and more critical than any kind of expansion. $2.2M converted at .0001 is 22,000,000,000 if my math is correct. Any and all means should be the top priority to retire this debt to keep it from converting at these prices - I would be all for using convertible debt with a conversion date 6 months or so out. I also think the BOD's and their families, etc. should loan the company any money they can come up with.
I don't know the exact conversion dates but I suspect there are huge amounts with conversion dates in February and March. If no financing solution is found before then I think the company should be sold to someone who has the financing to run and grow the company - give Ryan stock in the new company but not the controlling interest. How they can put PR's out about a new business unit is beyond me with the current financing embarrassment going on - they have never really addressed this in detail or else have tried to side step it like they are in denial. Ryan - hello - your stock is at .0003. Ryan - where are you?
Can you explain how you were able to get a meeting with Ryan and the BOD? Why can't Ryan communicate directly with us - it would help to know why you are filling this role.
Some questions -
1) Can the working capital line if credit recently increased to 4M limit be used to retire convertible debt before it is converted? Has there been any debt retired since the last 10Q other than through conversions? What is the schedule of when the debt can be converted by the holders? Why have you been unable to get any bank or preferred stock financing? Any updates from the November PR that said a cash infusion was being sought?
Thanks for doing this.
It's a work in progress - even management can not predict or guarantee exactly what the future will be. I think we need further confirmation that this is sustainable. Remember only a few months ago the stock was at .10 and revenue was stagnant and cash was zero. I have been here a few years also and been through the ups and downs. We have had positive news and results in the past only to get negative news shortly thereafter (credit card problem, loss of revenue stream). We have had PR's about big increases in revenue and then 10K comes out differently. I think management has done a great job working through the problems - but we have had letdowns in the past. The revenue increased so fast in the 3rd quarter that the question is is it a flash in the pan or sustainable - what goes up fast can go down fast in some cases. They are in a very competetive field and a few big customers finding a different product than IFSL's to use is a risk. I think we really need the 4th quarter audited 10K to validated the positive trend. I think it will be positive but just trying to reason what the market may be thinking. Trying to think of all sides to this - but I agree there aren't many other stocks out there with the current "promise" this one has. As you say - Go IFSL! Guess you could say I'm cautiously optimistic. With that said, I am a stockholder (significant number of shares) and like what I am hearing from management about creating shareholder value.
Thanks for the comments - it helps in trying to look at this from all sides.
The volume may be low due to no company buybacks currently happening. Some companies (not sure if it's an SEC rule or not) have quiet period rules at the end of a quarter and until 10Q or 10K comes out where insiders and the company itself can not trade the company stock. Maybe someone would like to get Paul's input on this as to whether IFSL has such rules in place.
The good news from the company the last several weeks has been unbelievable - as well as the share price not increasing more than it has. One thing I don't understand is why there isn't more insider related buying - just the circle of friends the officers have and based on the public PR's you would think there would be a lot more buying, although I know most of the officers already have a lot of shares. I also don't understand why some of the penny stock newsletters aren't all over this - would seem to be an ideal prospect with all the good news. I agree with others that part of it is that the company is under the radar and we haven't seen a bottom line yet.
Has anyone ever used their product? There would seem to be a lot of cash flow management programs out there for competition.
Seems too good to be true and you know what they say about that. I have been a shareholder for several years through some of the rough times and the recent revival has been amazing although they have shown potential for this in the past. Just looking for honest input - I'm not trying to promote or bash the company as I'm sure I'll be accused of. Potentialy this is one of the best opportunities I've ever seen but having a hard time understanding what makes their programs better than what else is out there. I'll give management credit for never letting up.
Hopefully we'll see news of an expanded share buyback program.
I believe that authorized shares that are not issued (or retired shares)are not part of the active and issued share count and have no ownership interests at that point . The buy back is basically the opposite of issuing new shares - outstanding shares are reduced. Since there are fewer shares out then for the same earnings in total, the earnings per share will be increased - i.e. each remaining shareholder owns a slightly bigger percentage of the company for each share they own.
A buyback is generally done when a company feels their share price is undervalued,and using available cash to buy back shares is a good use of company resources (cash) for the remaining shareholders. There is no P&L effect as the market price of the stock is not really reflected in the accounting statements - assets are reduced (cash) and stockholders equity is reduced - strictly a balance sheet transaction.
A buyback can increase the share price in two ways -
1) Creates additional buying and takes out the weak holders who are willing to sell at a low price - driving the price up.
2) Reduces number of shares issued and for the same total earnings, increases the earnings per share which can then result in a higher corresponding share price when the market responds.