Labor Smart Inc (LTNC)

[GrowthStocks99]

The Converters Are Screwed.

Not enough bagholders willing to buy their converted stock. Let's look at a typical 100,000 dollar convertible note. Convert at 60% of lowest PPS. Lowest PPS would be 3.8 cents. 60% of 3.8 cents = 2.3 cents. 100,000 dollars divided by 2.3 cents = 4,300,000 new shares for sale. Let's have two 100,000 notes convert and you have 8,600,000 new shares for sale. Less than 400,000 shares took the stock down 10% today. 8,600,000 shares? The converters will have a hard time selling it higher than 1 to 2 cents. They are screwed. And don't forget about the other 2 million or more in convertible notes coming up.

LTNC needs a lot of new bagholders for the converters. But they aren't showing up to buy this incredible bargain. Maybe they think it isn't a bargain at all.