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I'd say the latter...Merry Christmas and many blessings for 2016!
Walleye, I went with that plan, a long, long time ago. From certain posters all you get is lying mixed with gross exaggeration mixed with whining. It's a nasty, God awful cocktail I prefer to simply avoid.
How many years to make serious money? Well, if True Blue is any indication, it took just over a year to go from $1.88 to go to $7.11/share, and less than three years to get $26. Oh, and by the way, this is just a minor fact, but Mr. Schadel and his new All-Star teammates have many, many years of True Blue/Labor Ready experience between them.
http://finance.yahoo.com/echarts?s=TBI+Interactive#{"range":"max","allowChartStacking":true}
These staffing companies can become cash cows. LTNC blasted out of the starting blocks, so it showed it can get and sustain business. The convertible debt was a problem, and as I've (and others) said ad nauseum, Mr. Schadel has fully owned that and is persistently working to correct it.
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"When in doubt, fight 'em with the facts." Senator (Ret) Al Simpson
You stated, "I Haven't owned my own business, but I do analyze them for a living (not sub penny typically, this one was a mistake on my own accord). That said, there is something significant I would take into account here and look at negatively, that's a company being run by trial and error principles at shareholder expense. In this case, he has no clue what to do to improve fundamentals and is floundering, hence the advisors, good call on that part."
Let me think for a moment: you've never owned your own business but you analyze them for a living...and this qualifies you to pass judgment on Mr. Schadel? Excuse me if this presents huge credibility issues for me.
He has already stated quite publicly, more than once, that the toxic debt was a mistake. He is now persistently - step by step, day by day, week by week - working to rectify that. He has a ton of experience in this economic sector, as do the two Superstars he managed to convince to join him, although you state he "has no clue what to do to improve fundamentals." Amazing, those two very senior and respected business leaders must have really been duped.
Just how short this stock are you...or how low do you want it to go before you take a position?
What happens when traders "lock up" or put their shares into cash only account? Read this:
In a short sale transaction, shares are borrowed from the lender by the short seller and sold in the market. The lender of these shares continues to maintain a long position, hoping the shares will go up in value.
If the lender wants to sell the stock, the implications for the short seller will depend on where the shares were borrowed from - generally either from the brokerage firm's inventory or from the margin account of one of the firm's clients. Margin accounts differ from cash accounts in that they allow the firm to use shares held in these accounts in various ways, including lending them for short sales. If the brokerage firm has taken the shares from its client's account, and that client wishes to sell the stock at some point while the short position is being held, the client is able to do so.
This sale by the client who was lending shares will usually have no effect on the short seller, as the firm will either borrow the shares from another firm or use other shares in its own inventory. For example, if Jack has 100 shares that are lent out to the short seller and Jack now wishes to sell the 100 shares, all he has to do is inform his brokerage firm. The firm will then look in its inventory, and if there are 100 shares, the firm will sell them on the market and put the proceeds into Jack's account. The brokerage firm will now be the one that is owed the shares by the short seller, Jill. However, what could hurt Jill is if the brokerage firm decides that it no longer wants to hold its position in the stock and it is unwilling to continue to lend the shares to her. The brokerage firm has the right to call any short seller to return the shares at any point in time. In this case, Jill the short seller will have to return the shares to the brokerage firm by purchasing them on the market, regardless of whether she ends up incurring a loss or a gain.
http://www.investopedia.com/ask/answers/05/lendersellshare.asp
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MORAL TO THE STORY: IF WE ALL TELL OUR BROKERAGES TO MOVE OUR SHARES INTO A CASH ACCOUNT, THAT WILL TAKE SHARES AVAILABLE FOR SHORTING OFF THE MARKET.
Now, there will of course be rebuttals to this post and those will only come from those who: a. Are short. b. Want the stock price to decline. c. Both.
Mr. Schadel is building an All Star team, person by person. This will reflect throughout the entire LTNC organization and week by week, month by month...the bottom line.
That and the fact that we was the founder of Command Center and decided to put his hard-earned reputation on the line with Labor Smart and Mr. Schadel, well...let's just say that provides a pretty good hint of where that legal contest is headed as well!
Mr. Welstad not only has an extended and phenomenal track record for business development, he is a TRUSTED and highly RESPECTED name in the industry. Besides the strategic business savvy he will bring to LTNC, he possesses at least two other attributes which are of near immediate impact: he is well-connected and knows where and how to get the best financing deals for the future of the company. That's what tremendous credibility and respect get you. The guy could be on Shark Tank as a deal maker.
It's not like Mickey Mantle is coaching a little league team...it's like he's suiting up and it's totally legal!
Great question, NAC.
Mr. Megagnome, sir, since your are trying very, very hard to save us all from our demise at the hands of Mr. Schadel and this stock, could you please link us to a statement by Mr. Schadel that an "R/S is imminent"?
Many thanks.
INTHEKNOW, Roger all and thanks for your note. I have a hunch your allegiance - and ability and perseverance to sort the noise, obfuscation and outright deception from the facts and the CEO's core message - is going to pay off handsomely. See you on the objective!
I have to humbly agree with Mr. Schadel and say it's great to have you back as well! I know you were campaigning hard for Ryan during the darkest days of the company when less than a handful of us were still faithful and still buying. Then you went on "radio listening silence", as I did. However, there were several days this past 4-5 months when only 999,000 shares were purchased the entire day, and those were mine.
Some people have stooped to keep bringing up his record when he was 18, and to the degree it's true, I say "God bless him for moving beyond that, becoming a man and making something not only of himself, but for a lot of other people." That simply means that America is still the land of opportunity, even for those who make a mistake during their "stupid years", which we've all been through! And guess what, the man has shown he is good to his word and knows how to fix past missteps. I have said before - check my posts - that any future success must include taking shares off the table. He's done that!! Now, we are a LONG way from declaring victory, but I'm more hopeful than ever for this company and more importantly, it's leadership!
P.S. - I forgot to mention that True Blue's stock has split 4-5 times since 2000.
OK, my last post for awhile, then I go back to my foxhole.
Some have speculated there might be a buyout coming. Personally, I doubt it (but it may not be completely off the table). I think he's in for the longer haul. Could there be big deal coming? Certainly possible, but that still does not have to be the overriding reason he took one quarter to one-third of the OS off the table. The debt conversions had to have stopped or slowed to a trickle, otherwise he would not have bought. Who would buy knowing that more heavy dilution is coming? Quite possibly, he might have made this huge investment because the Command Center adjudication looks favorable for LTNC. If it does, what's the payout to LTNC...and how many more shares do you think the COMPANY can take off the market with that payout? And what does that mean for the average retail investor? It means the value of your shares will go up significantly. Overall, however, I think Mr. Schadel is very deliberately restructuring and refocusing this company after blasting out of the starting blocks with success, but while taking on too much (bad) debt, too fast, along the way.
By the way, these hiring companies can become cash cows. Check out True Blue, for example. In less than 10 years it's stock price went from oblivion to $25/share (from '95 to '99 it went from $2 to over $25), and now it's almost $30/share. Not bad.
Any way you slice this - and the bashers will try to slice it up any way they can - it's very, very positive news.
That's my 2 cents on this. Again, Happy Thanksgiving and blessings to all!
Add to this a favorable ruling on the court case OR a buyout, and we are seriously "back in business".
I am feeling really good about this CEO, who, quite frankly, I never lost faith in.
OK, returning to "reading only" mode now, and wishing all a wonderful Thanksgiving.
Has the triple effect of taking shares out of play, driving up the stock price and showing confidence in the company. Not bad.
Well, I guess Mr. Schadel took his $200K bonus and did a little more than buy a new car with it! Ha, ha.
There is a lot that is good about this stock, starting with the revenues that are coming in for a company of this age and size. However, unltess the company does something to both completely rid itself of toxic debt AND reduces the shares in play (not the A/S), getting much of a lift off at all will be extemely difficult. Sure, several months ago it was running in the double digit pennies. But that was when about 180-200 million shares were in shareholder's hands. Now there are - how many - something approaching 5 billion? We'll know the latest when the 10Q comes out, but without a substantial share buy back, this will be a tough slog. I hope I'm wrong, because I own a bundle.
...and buying back a billion or two from the O/S.
Two things will make this stock move: paying off the convertible debt AND buying back shares. When this happens and the degree to which it happens is up to cash available and the CEO. The company is on its way to digging itself out of the diluting state it worked itself into, due to convertible debt. Take take that bad debt away and reduce the O/S, and this ship will sail.
Yes, sir, completely concur. Ignore works well. Thank you Investors Hub for this highly useful feature!
IF these 5 stores were among the best for revenues, that's more cash and financial flexibility to the CEO to do what is needed, which is to reduce or eliminate convertible debt. If we also get a share buy back, look out!
Besides paying off the debt, a company buy back of at least 500,000 shares would be awesome. At .0001, it would remove at least 1/6 of the O/S and could be done so for $50K. Even more shares off the table would of course be fantastic. I'm not an expert at this but it would seem the trick would be to get them for that price.
LTNC is going to break out of this .0001 business and post phenomenal results. Why?
1. Company grew too fast, took on wobbly debt, debt holders converted, shares had to be added, price got hammered, OVERHAMMERED.
2. $30 million company and growing.
3. Added two contracts this spring for cleaning major league baseball stadiums. That's a combined 162 events of cleaning. What does a company make in net profit for cleaning a stadium for one night? I don't know but I bet if you do it 162 times it's not chump change, and will contribute to the bottom line.
4. Once the convertible debt is covered, if the CEO follows through on a buyback, those who invest at these fractions of a penny are going to do just fine, thank you very much.
5. Most labor hiring companies that survive and thrive end up being cash cows. This one will do both.
Wait. Watch. Learn.
I would hope the CEO only gives us an update when he is tactically or strategically ready to do so, or when he is required by law to do so. If that time has not arrived yet, so be it. Silence on the net is not necessarily negative. My favorable opinion of this company has not changed one iota since my last post.
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.
There are facts, there is opinion, there is intent to deceive...and then there is slander.
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You are right...it is always better to underpromise and overdeliver. Markets react strongly to the down side when the opposite occurs and positively when it happens.
Take the TBI chart back to its beginnings around Feb' 97, and then see what happens for the rest of the year and into '98. That sort of move is way to early for LTNC, but given continued growth apace, how long - a couple of years, maybe - before that kind of move happens?
Here are three reasons, among others, why I believe this stock represents a serious opportunity to the upside, with some downside risk still there, but I believe worth the bet, which is all this is at this stage.
http://finance.yahoo.com/news/labor-smart-ltnc-resemblance-early-155300864.html
http://www.nasdaq.com/symbol/tbi/interactive-chart
http://www.prnewswire.com/news-releases/labor-smart-inc-adds-former-labor-ready-regional-vice-president-shannan-m-manix-to-its-board-of-directors-197858511.html
Sobe4Life, In the Know, A big THANK YOU. You guys have held the line, been persistent and even relentless at sorting fact from fiction over the past couple of days. When my knees got weak and the stock was at .02 and .03 and people were screaming "sub-penny" I went ahead and bought more based mainly on Sobe's well-founded analysis, enabling me to average the most stock I've ever owned in my life to just under .10, from .24 previously. I have never been one to think the CEO was a bad guy; in fact, exactly the opposite.
I sincerely appreciate your experience, insights and stamina.
Very respectfully,
Colonel Mustard
Thanks for your response. Given the debt issues, that kind of expansion for next year certainly seems to be a stretch.
The thing that is not clear from your assertion is the critical piece of information which says when during the year those branches came into being. For example, when the did the branches open this year? As I recall, about 8 opened between April and June (the last one in Alabama). I'm no math whiz, but it seems to me those openings well into the year will automatically bring the average down, since there is no way then can nor could expectd to achieve a full year's revenue, let alone optimal efficiency. What would be helpful to know is when the branches that were counted against 2013 were opened, as well.
Since you have done your DD on the 20-25% YOY drop, do you mind sharing your evidence with the rest of us?
It's across the board; all of OTC is shut down.
http://www.cnbc.com/id/102078861
http://online.wsj.com/articles/finra-halts-trading-on-otc-markets-1413562993
Concerning the Houston closure, you are absolutely spot on. My brother has lived there for over 30 years, and part-time, not to mention cheap, labor is plentiful for exactly the reasons you cite.
Completely agree.
Sobe4Life, I completely agree with you. I will not take a bunch of time to be redundant here. This is a huge buying opportunity. Getting all I can. If it goes lower, will add. The basic foundations of this company remain solid. With their top line inertia, they will outgrow this debt. There are some titan investors of our time who made a fortune when there "was blood in the streets". Right now, it's more like bitterness and cynicism in the streets, laced with a lot of misinformation. As you said, an awesome buying opportunity.
Significant volume last Friday, roughly three times the daily average, is definitely not a bad thing. This kind of volume increase can often signal a reversal in the overall trend. Will it in this case? Stay tuned.