Labor Smart Inc (LTNC)

[sobe4life]

YOU ARE WRONG!

Oh yeah, this is a real gem of a stock. Unmanageable debt with millions in toxic financing, IRS problems including liens, waning revenue growth, no income, a CEO with a robbery conviction...WEEEEEEEE???

I looked at their balance sheet and based on their growth, increasing GPM's and EBITDA do not see any debt that is unmanageable.

A financing is not toxic if it has a floor. To that end, the company does have toxic financing but it's not in the millions. Regardless, every note has a pre-payment clause and after these latest conversions I expect to see the company paying off more notes than allowing them to convert.

There are ZERO current IRS problems. They were behind and now have an agreement in place, which has them current and good standing with the IRS. The agreement now prohibits them from ever being late on a going forward basis.

The company did $16.1 million in revenues in 2013. So far, they have surpassed $18 million and are projecting $25 million for 2014. Last month, Year over year, same branch sales were up over 25%. I fail to see any waning revenue growth with this company.

This year will mark Labor SMARTs 3rd year of operations. Going from a complete start-up to where they are today is a feat within itself. The majority of start-ups start showing profits in the 3-5 year range of operations. However, when a company is showing triple digit growth, many times company's will sacrifice net income in order to continue fueling their growth. Once LTNC reaches a specific accumulation of critical mass, their growth will stabilize and net income will drop. Until then, their increasing gross profit margins and positive EBITDA is a positive sign of things we should be looking forward to.

A CEO with a robbery conviction???

Being arrested and being convicted are two completely separate things. To that end I say, "Where is the proof?" Oh, and please, I'm not asking for a 10 cent local newspaper article where stolen bikes make the front page.