Labor Smart Inc (LTNC)

[DD2Gain]

Before you buy you need to look again at the amount of stock that has already been converted (millions of shares) and the amount of stock getting ready to be converted. Last year, Schadel did an admirable job of trying to keep up with paying off the convertible notes before they matured, but as the year wore on it became more and more of an issue. This year, only one convertible note has been amortized at all. It was amortized fully, but there are millions of dollars in convertible notes on the line and several hundred thousand of it has matured or is getting ready to mature in the next few months. The stock price will go down and it is likely to go down to the pennys. IF (and boy is that a big if) Schadel can actually get his act together and pay off his convertible debts and tax debts there is a glimmer of hope here. However, Schadel needs to do one thing: deflate his ego. Stop increasing the number of branches. He can't afford it at the astronomical costs associated with the currently available financing and revenue growth just isn't there yet with the new branches. Imagine what the equivalent interest rate is for conversion at .10 per share. It makes the interest and fees of paid-off convertible notes look tame in comparison. My suggestion is to protect your hard-earned money and wait this one out to see what it does over the next year.