Labor Smart Inc (LTNC)

[sobe4life]

Easy answer....

The convertible notes are very well diversified with no real concentration held by any one party.

Additionally, the notes are staggered, so as they come due the company has the option of prepaying.

Most importantly, this is a company that will do close, if not over, $25 million this year and is projected to do over $40 million next year. With that type of revenue stream the company has the ability to pick off notes.

I'm not going to say that there will be zero dilution over the next several months, but if you look at their history, the company has gone from 19 million to 33 million in over 3 years of being a public entity. That is not horrible dilution for a company that has been forced to do convertible note financings since its inception.

Additionally, the company predicts showing net income over the next several months, which should have a significant impact on the type of financings they will be doing in the future. Of course, the best thing the company can do is get the hell out of the OTC market and uplist to a larger exchange. Then they can get Institutional support.

Either way, as long as the company continues to focus on its operations, this stock will be a good long term investment.