Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Again, prove it. Cite me the regulation/law that specifically states that if a company has made arrangements for the consistent repayment, over time, of a lien, that it cannot purchase stock. SHOW ME where it states that's not OK....
"He's done it before so I wouldn't doubt it, but again, if that's the case then he is purposely manipulating share price for personal gain (may take years but he will see a court room for this one)."
---Yep, you're right. He bought a ton before, 1.700 billion shares to be exact...and he wiped out every single one of them. Burned 'em, in fact. Severely illegal, to personally reduce the O/S? Prove it.
"Also, he is illegally circumventing a legitimate buyback of which he can't do due to the companies financial situation."
---Illegal to guy shares with your own funds? Illegal to buy based on what? Assuming they are his funds, or the company's funds, what specifically about the financial situation prohibits him or the company from buying back shares? Please cite the law...I'm willing to learn. Thanks.
Since you are speculating let me add some of my own speculation. Ryan went dark to provide himself and the company some room to maneuver. He went dark so he does not have to pay to have the reporting done to a T - rather than focus on the balance sheet. He went dark so he can quietly buy up shares, and so that those that still believe in Ryan and the company can do the same. He went dark so he can focus on driving business to the bottom line, like he did with near warp speed in first three years of the company, before the convertible debt took its toll and which he fully owned up to. And when he's done and good and ready, he'll let us know what he has done and where the company stands. I continue to buy, just like I did last year before it shot to .0013. I love the darkness...it's a Nightfighter's dream. We own the night.
Also interesting to know the rough realm of investors...less than 300.
You have a good weekend too, Scott!
Superb post, Scott, many thanks. At the end of the day this gives Ryan much more room to maneuver while reducing overhead costs.
Good luck to you as well, Scott. It did not materially affect the recent stock price, but Ryan's burning of 1 billion shares (after previously doing the same to 700 million) was anything but a token act. It represented so much more than that.
I'm with both of you. The crickets don't bother me at all. Was this way last year and I silently accumulated at .0001 before the surge to .013. Sometimes silence is a strategic choice and sometimes it's forced upon you. No matter, there are even some scenarios where these lower prices, at least for a defined period, are good - and perhaps very good - for the future of the stock.
Spot on, all the way around. Financials will be released when the CEO thinks timing is best IAW his strategy. Stevie's ludicrous and highly delusional "lawsuit" took some wind out of our sales but this too shall pass. I've been adding shares as this has gone down and IF it hits .0001, that won't stop. As to any civil suit for Stevie's spurious "lawsuit" and evident effect on the stock price...count me in.
After the last time Ryan went quiet, for a few months last year, with everybody but a baker's dozen of us all gone and some of us steadily and quietly buying at .0001, he and this stock came roaring back. No, it didn't become a 10-bagger......it became a 13-bagger within a few months. Meanwhile, Ryan was working hard in the background. Investors should not mistake relative silence for inactivity or non-productivity. I trust him...and I bought in high, like copper high, but never gave up. He fully owned up to the convertible debt problem and is leading and managing this company as well as maybe only a handful - if that many - are on the OTC. Once the smoke of the behind the scenes ongoing legal BS (and I do mean BS) clears, I believe its blue skies and bright sunshine for LTNC.
Scott, I completely concur. It astounds me that users purport to claim facts, when they are patently false. Ridiculous indeed.
Had exactly the same thought this morning. Provides more time to consistently invest at absolutely bargain prices.
"...I still have a few thousand shares sitting in an old account, worth crap as I bought in right before he diluted."
That explains A LOT. In fact, that explains it ALL.
I completely concur. I wholly trust Ryan Schadel. He's human and can misstep but it won't ever be out of malice or intent. He made a mistake on the convertible debt and has completely owned up to it. He's doing everything he can now to restore shareholder value. This stock blasted out of the starting blocks so he KNOWS how get the top line numbers higher and that will happen in the months ahead. In the meantime, he has been working feverishly on improving the bottom line as well. There is always risk in this business, but I feel as comfortable as I can be with what CEO Ryan Schadel has been doing over the past several months to clear up the balance sheet and propel this stock much, much higher from where it is now.
CEOs are very rarely if ever prohibited from buying or selling on the open market. Read this article, but more importantly, read the last paragraph.
http://realmoney.thestreet.com/articles/06/16/2015/when-ceos-buy-stocks-follow-their-money
Whenever a CEO buys (or sells), they still incur market risks, even when they know 10 times as much as the average retail investor. Think of it this way: CEOs almost ALWAYS know more than the average investor, 365 days a year, and it is their prerogative to buy or sell ON THE OPEN MARKET pretty much when they want to. Which is exactly why most investors will tell you that if a CEO is buying, it's time to BUY, and if a CEO is selling, especially if it's a big, unexplained sell (as opposed to a College tuition payment), it's time to SELL! There are insider time and quantity restrictions when it comes to sales, as well. I can't recite exactly what they are (a 6 month wait seems to be part of the rule) but perhaps someone else on this board knows the letter of the law.
Do your own DD, make your own decisions, but I know what I've been doing for the past 18 months, and if I had cleared funds, I know what I would do today. Instead, I'll wait until funds clear tomorrow!
He did not say it, but he could have added "...and we gobbled up more convertible debt...and we started the buyback...and I personally bought up more shares, now approaching 2.5 billion and....and the app is in beta testing and...and I hinted at a national call center...and this ship is in the middle of a huge turn around!"
He did not say it, but he could have added "...and we gobbled up more convertible debt...and we started the buyback...and I personally bought up more shares, now approaching 2.5 billion and....and the app is in beta testing and...and I hinted at a national call center...and this ship is in the middle of a huge turn around!"
Scott, Thank you for taking the time and having the patience to answer the "lien" rantings. Some of us get that it is not a pejorative term. The vast majority of us also have liens on properties we own - be they houses or cars or properties - and some of us probably even have them with the IRS. Our CEO is absolutely on time with meeting his lien commitments. End of story. Thanks again for taking the time to clarify for the newcomers.
Superb post, many thanks.
Volume leads price...virtually always.
Thanks for the history lesson, traderpie. Your homework has fully confirmed what many of us suspected.
Given that the PR was not authorized by LTNC, and was apparently fraudulent, and given the damage it caused, I would (legally) smoke "Steve" like a cheap cigar.
The press release smacked of a very lame attempt at extortion and/or some depraved mind's intent to...do what? Gain some kind of leverage? A PRESS RELEASE, let alone authorized by the company, concerning $15,000 never made a bit of sense. Even if someone was legitimately suing the company, $15K on a $20 million company barely amounts to chump change. If I'm "Steve", and I fraudulently developed this press release, I'd think about either getting the best lawyer money can buy or going to a country that does not have an extradition clause with the United States, because that press release clearly hurt the stock price and what otherwise should have amounted to some serious inertia in price this week. It's going to cost "Steve" a heck of a lot more than the $15K he was after. It will likely take more time to reverse the absurd trend we've seen over the past couple of days, which should also cost the perpetrator some serious cash for damages caused to LTNC and its stockholders.
P.S. - During the Periscope broadcast he alluded more than once to a one billion share certificate. It is my BELIEF that he wanted to torch it during this Periscope, but it apparently did not arrive in time. Stand by for news...
What follows is my summary of the Periscope. Where possible, I tried to be as accurate as possible but make no guarantee of the absolute accuracy of what is stated below. I presume at some point next week an official PR/statement or two will follow, so wait for that if you want the official company announcement(s). Here is what my artillery-affected ears heard during the announcement:
1. As he walked to his office through a cubicle area, he spoke of a "future telemarketing center for national accounts".
2. There have been no new shares issued since last December.
3. Reverse split question - "Not interested. It's an easy out....Not part of our strategy. Won't happen in 2016, as long as I'm breathing. For 2017, 2018, 2019, who knows." Editorial comment (mine): For those who have been here 18 months or longer like I have, he did once mention roughly 18 months ago that an R/S could be used to uplist to the NASDAQ, once the balance sheet is strong enough to go for it. However he has since stated numerous times that he will not go the R/S route to fix dilution (as the vast majority of other stock companies would do). I see that as looking out for the common investor.
3. Self-insured. "We have been self-insured since June 2014" (think he meant 2015?), which is a big deal for increasing profit margins. This goes straight to the bottom line.
4. Gross profit margins. "We have the highest gross profit margins of any publicly traded company in our industry. That is quite something since we are not yet at the 5-year mark yet..."
5. Staffing Group (TSGL) Deal. LTNC took up a position with them (well over a year ago), as an activist investor. Based on Q3 results, etc., then liquidated our position. Had one preferred (voting control) share of the company remaining. Closed an arms length deal Friday afternoon, effective immediately, selling four branches, for $3,441,522. Includes deal structure of $2.9 million plus over $500K in cash. Deal includes $1,080,000 "cash consideration" of which the $500K is escrowed and on the way to accounts receivable. Deal includes a $755K two year promissory note (balloon payment), due in 24 months. Deal also includes 600,000 shares of stock, approximately 20% of which we expect to sell over next 18 months, the remainder of which we expect to eventually "dividend out" to Labor Smart common shareholders, all based on the right valuation of the stock at the time of sale. We will retain 55% interest in TSGL common equity, which means we continue to get 55% of the revenue from the branches which were just sold.
6. Use of Funds? "There are two big initiatives": Number One: "Paying off convertible debt." We have good arrangements with debt holders now, but if we can further negotiate "some haircuts", that's something we might want to do. I prefer to pay it all off in one shot and this deal today is an indicator of how we are repositioning/restructuring the company to strengthen our balance sheet and set us up for the future...."
Number Two: "The stock buyback. I'd like to accelerate the buyback" and once we get through the 2 million dollars I anticipate us doing another one if we have the funds/assets available to do so..."
7. What is a reasonable share price? "A half a cent" given where the balance sheet is. If you look at our balance sheet, which is what I did when I started buying our stock, you kind of scratch your head..." (editorial comment: implying that the stock price should be higher). "Given revenue and (several factors), a half a cent is very reasonable."
At the end he noted he has "not really been in the staffing industry for about the past 2 years", and has been more of a "fireman". My SENSE is that's a reflection of his having to work the financials so hard after getting into the debt conversion problems and trying to fix the balance sheet and the stock price. My OPINION is that once he gets to a point where the financials are looking solid, with minimal if any debt and a corresponding reduction in O/S, he's going to go back to doing what he is extremely good at, and this is building - REBUILDING - value through staffing deals, production and revenues. He admittedly (and has admitted more than once) messed up the debt side of the business by taking on too much convertible debt, but there is absolutely no doubt in my mind he knows how to ramp up the core business/revenues when he is focused on it. I BELIEVE the .0001 was a tremendous gift to anyone who took advantage of it, and the current stock price is still a huge gift of a price.
Am overseas and could not get the live stream but the recorded version is coming in beautifully...
Iam86, excellent post, completely concur. I believe chances are high that next Friday's announcement will not be one dimensional. Retiring up to a billion shares would be significant in and of itself. Eventually, it will be pure supply and demand math that is going to drive this gem higher. But as you well state, there are other factors still in play, including convertible debt (but at least it's been frozen from converting for the foreseeable future), as well as recent revenues. I believe the A/S matters least. It's an insurance policy that if you think things are about to get ugly (dilution), you need more. Changing the A/S often signals direction and confidence, including a lack of confidence or increase in confidence. The fact that Ryan recently reduced it by 60% IMHO is a very positive indicator of his confidence. Your last comments were also on the mark: "...and we would still have people on here claiming that it's headed for no bid and bankruptcy. Don't believe them. If someone isn't willing to look at both sides of the aisle, their opinion doesn't matter." I've tuned out the max number of these people that I can. These people were here claiming doom when it went from .22 to .49 share, were screaming "I told you so" went it hit the trips, were whining when it recently hit .0013, and will still be spewing their visceral vitriol when it hits pennies, which I believe, IMHO, it eventually will. Back to my foxhole...
Concur. It is going to take time. What will be unpredictable, however, are the times when it will really surge and of course, what portion of that surge will retrace somewhat, which it always does to some degree, for most stocks. It's the general, longer range vector which excites me.
I, too, find it hard not look at this board once in awhile. After roughly four years we hit the 30,000 message mark at some point last fall, and since then, in the last few months, an additional 20,000 messages have been logged. There are clearly some eyes on this baby and more looking this way every day.
Am I holding a bag? Yep, guilty as charged. Holding the biggest bag of financial opportunity I've ever held. Had one that came close about 12 years ago, but cut my potential gains short due to inexperience. Not this time. The only thing that is relatively and temporarily off is the stock price. Everything else points to a phenomenal opportunity. Debt reduction, A/S reduction, O/S reduction, huge talent added to the team, a great track record of knowing how to rapidly increase the top line, real revenues, strategic asset sales, smart asset/partner investments, all-in leadership, transparent leadership, communicative leadership and just plain leadership. Check back in a year, and ask me how my "bag" is doing then.
Have been with this stock for roughly 18 months and it is quite literally, IMHO, in the best position it has ever been to completely clean up its balance sheet and advance strongly. Right now, it's all about projections: projections on toxic debt retirement, projections on stock buybacks, projections on accrued revenues and projections on revenue overall. Today's announcement was about execution. That will continue with this CEO and his team. Once this execution is complete (debt retirement, stock buyback, etc.), look out. I continue to add when I can afford it. The only question is the timeline. When this goes, mark my words, IMHO, it will go north, go fast and go strong. And when it does, I would recommend getting the h--- out of the way. RLTW.
There is nothing like the voice of experience...and reason!
I'm not sure. Could be flippers, could be the amount of shares still out there. However, my powder is dry, but at 7s and 8s this is a gift. In a few months these prices will be the bargain of the decade. What CEO burns 700 million in shares, gets two highly reputable board members to join his team, posts a $2million buyback and from Day 1 staunchly resists a R/S? Ryan Schadel, that's who. Mark this. Check it out in April, and come back and have another look in July. When those $2million in shares are eventually bought up, and revenues are clearly shown to be strong, the PPS will be far, far north from where it is now.
I posted the message below on 25 April 2015, when we were at .0001. The "it" in "I believe it" referred to the belief that LTNC could increase 100-fold from there. My sentiment in terms of where this stock is going and how it can, and I believe will, get there has not changed one bit. If anything, that which has happened the last two months has only increased my confidence in my humble projection. The recent addition of two All-Star leaders in the industry is a huge vote of confidence for Ryan Schadel. His recent torching of 700 million shares is further evidence of his integrity. However, this major project is going to take months, not weeks, so patience is truly a virtue here. Meanwhile, for naysayers who incessantly post direct attacks at the CEO or outrageously false information, IGNORE is a beautiful feature.
Colonel_mustard Saturday, 04/25/15 01:03:33 PM
Re: davidrt888 post# 24341
Post # of 42898
David,
In time, I believe it is too. We don't know what is happening behind the scenes, and that is not necessarily a bad thing. If the convertible debt can be paid off by say, somewhere in the third quarter, the issue then becomes the amount of dilution that has occurred. If the company then begins to whittle away at the dilution by buying back some shares, that will only serve to get us well off this .0001 price. After that, it's a matter of how many shares are held and how well the company is doing. If we can get back to a penny this year, that's quite a leap (100X) from here. Two cents would be terrific. I strongly disagree with people who say this company is going under. Revenues (notice I did not say profits, yet) are too strong for that, IMHO. However, an RS, if done too early, would hurt. Later, when the balance sheet looks better and we're firing on all cylinders, and we're perhaps back over 10 cents a share or so, might make it worth it to uplist.
Now I will go back to my quiet corner for several more weeks.
This is one of the single most powerful moves he could have made. He owns 2.68 billion shares, and he just took an additional 700 million shares of the roughly high of 6-7 billion O/S (I have not seen the latest, precise number), so his combined buying over the past two months combined with torching 700 million shares represents chopping the O/S roughly in half. If you don't think this new supply and demand equation will have an effect on the share price, especially given all the recent churn that has happened, you need to go back and study micro Econ 101!
Thank you, Mr. Schadel. This move will set us up for continued, huge success as the rest of your strategy comes together in the months ahead!
Good night from overseas!
Hey Tantalos! Had a great vacation to northern Italy...in the Italian Dolomites and in a small valley called "Alta Badia". Great time with family and of course, great food.
I posted my overall take for 2016 a day or two ago, but for this week, my humble speculation (and this is all that it is, no more no less) would be the following for Thursday:
1. Somebody mentioned adding another board member. Make no mistake, the two recent additions are huge votes of confidence for Ryan's competence, drive and vision, as well as the perceived future of this stock by the two new board members, but adding another board member at this point, while it would be great, I do not believe will materially effect the PPS.
2. Something that could move us north would include a further reduction of outstanding shares (the A/S doesn't mean jack, and people need to know the difference), or something that would materially affect the bottom line. That would include news concerning additional revenue sources (which could include LTNC assets now held in other companies), reduction in costs or reduction in debt liability. Then the question becomes a matter of scale; i.e., HOW MUCH are we talking if it's a stock buy back or something, revenue increase or any of the above.
My humble two cents worth. I also agree that .06/.07 represent low points.
BTW, I follow both you and TMYZ. I look for rational and reasonable posters. I remain stunned how the SEC or FBI can be invoked without consequences to a poster.
Absolutely Tmyz. When I say it could happen within a week or two, I'm not necessarily talking about next week - although a major announcement could certainly propel us up! What I am saying is that once a confluence of these events come together, within a week or two this thing could surge three to five fold, or greater.
Excellent point, Tmyz. We held with over 300,000,000 shares traded.
Additionally, Mr. Schadel's continued purchases suggest the following:
1. He continues to back his words with his personal risk and skin in the game.
2. Due to restrictions on sales, he is essentially removing whatever he purchases from the float.
Mr. Schadel has now also found a way to raise cash, which potentially will give him and his new All-Star board members a range of options, including going after revenue-producing businesses, working down the convertible notes a bit faster or taking even more shares out of the float by initiating a stock buyback, potentially for use in further incentivizing the workforce. I believe these short term gyrations in the stock price will be a long distant memory in a few months. I believe at some point we will hit a major tipping point when the combination of less available shares, greater demand for shares, additional revenues and the payoff or near term payoff - of all convertible notes will rocket LTNC higher. How high is anybody's guess but it could happen in a matter of a week or two.
As to those who incessantly point to the distant past as a predictor of the future, when borrowing mistakes were made that have since been fully accounted for, the IGNORE feature is a beautiful thing. I'm just a casual observer here so I only get to put 5 posters in IGNORE status, but it does keep me from reading what another poster has rightly referred to as BULLSHIT BULLSHIT BULLSHIT.
I believe at least part of this - perhaps a big part - is end of year tax loss selling (guilty as charged). For some of us who have been here since early 2014, with our initial shares purchased in the low .20s to as high as the upper .30s, this presents an opportunity to register a loss for 2015 (based on "first in, first out" accounting)for some numbers of shares. However, as I am waiting for one more day for funds to clear, in the early days of 2016 I will be adding 5 times as many as I just sold! There have been a confluence of events since November which clearly point to Ryan Schadel, his growing All-Star team and LTNC shareholders to achieving phenomenal success in 2016!
Further reducing the O/S will be of benefit to all shareholders. As noted, it is one of the key variables that will affect the stock price. So is demand for the stock, as are revenues and valuation of the company, which will drive even greater demand.
Although much less now than a couple of weeks ago, I still see references to the 20 billion Authorized Shares as if they are somehow a big negative drag on the stock. They are not. Here is the definition of authorized shares:
"DEFINITION of 'Authorized Share Capital'
The number of stock units that a publicly traded company can issue as stated in its articles of incorporation, or as agreed upon by shareholder vote. Authorized share capital is often not fully used by management in order to leave room for future issuance of additional stock in case the company needs to raise capital quickly. Another reason to keep shares in the company treasury is to retain a controlling interest in the company.
Read more: Authorized Share Capital Definition | Investopedia http://www.investopedia.com/terms/a/authorized-share-capital.asp#ixzz3vVjtaN4Y
When Ryan Schadel and LTNC had their backs to the wall because of the convertible debt (already acknowledged a bunch of times as mistake by Ryan) and subsequent dilution, while losing the near term dilution battle, he wisely went to his strategic reserve to keep from losing the war and ownership of the company. Eventually the company may choose to reduce the A/S, but for now it still provides an insurance policy.
Outstanding shares - O/S - mean a lot more, at least when a company has backed way off the brink like LTNC has. Here is the definition:
Outstanding shares refer to a company's stock currently held by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders. Outstanding shares are shown on a company’s balance sheet under the heading “Capital Stock.” The number of outstanding shares is used in calculating key metrics such as a company’s market capitalization, as well as its earnings per share (EPS) and cash flow per share (CFPS).
A company's number of outstanding shares is not static, but may fluctuate widely over time. Also known as “shares outstanding.”
Read more: Outstanding Shares Definition | Investopedia http://www.investopedia.com/terms/o/outstandingshares.asp#ixzz3vVnu99Bb
Now, I'm not exactly sure what the O/S count is as of this moment, but I've seen numbers ranging from 6-7 billion. However, what I do know is that Mr. Schadel has personally bought over 2.5 billion of those shares, essentially reducing the O/S that other investors can get their hands on. Now, what if Mr. Schadel went rogue on us, and decided to dump everything? Well, he couldn't (and I strongly do not believe he will), because there are restrictions on how much and how fast he could sell his shares if he wanted to. Check out 'Rule 10b5-1'.
So, with only about 2/3 of the 6-7 billion shares in actual circulation, this has now become a basic supply and demand situation. Less shares in true circulation equal less supply, and less supply given current (and increasing!) demand is only going to do one thing: drive up the stock price.
Here is one way (my humble example, there may be others) to think about A/S and O/S: A/S is like an open credit line, and O/S is actually how much of that credit line you use. If I have a $100K open credit line, but only owe $25K, which figure is the most important? Of course, it's the $25K. Heck, that credit line could be a million bucks, but if I still have only borrowed $25K of it, that's the figure that matters the most. At the same time, the $100K (or the one million credit, take your pick) are great to have in my hip pocket to keep someone else from taking me over, or handling any other "strategic surprise" which might come my way.
Blessings to all, have a great Sunday and many blessings in 2016!
I like it Tmyz! Merry Christmas and God's blessings to all on this board, including those who, well, let's just say don't exactly consistently present the truth or facts.