Labor Smart Inc (LTNC)

[sobe4life]

Tmyz.... Useful information....

Unlike other unfounded statements I have read, there is no Armageddon in store for Labor SMART nor will we ever see the stock trading in the sub-pennies.

There is a very distinct reason why we saw the recent decline in the price of the stock and I can sum it up in two words "Asher Group". They are the primary reason why hedge funds have such a horrible reputation on the street. Why Labor SMART thought they would be treated differently is BEYOND ME. However, it is what it is and the damage is done.

The positive thing is that Asher is DONE! They no longer have an outstanding note and no longer can convert a single share of LTNC. I would estimate that they are still long about 500,000 shares and once they are done selling over the next few days we should anticipate a fairly nice rebound.

As someone who has expertise in investment banking, not all hedge funds (convertible note holders) are bad groups. They all have a specific criteria that they adhere to in order to determine the type of investment they make into a company. Things like growth, revenue stream, ability to meet projections, news, etc.

If a company fails with their story, these hedge funds will be very unkind as they attempt to recoup their investment as expeditiously as possible. However, for the select few that follow through and do what they say, hedge funds can be very kind since they want to continue to fund and make monies with a successful company.

This is why we HAVE NOT seen a negative impact with the price of LTNC in the past when they have selectively allowed conversions to take place. While it is unfortunate that LTNC made a bad decision, I look at it this way, had they not allowed Asher to convert, we would not have the opportunity to buy stock at .04 cents a share. This is very much the same company that it was when it was trading at .20 cents 3 weeks ago.

I would like to remind everyone that the reason most companies go public is for the ability to raise capital with stock. Labor SMART has done an incredible job of growing their company by reinvesting their gross profit margins and by investing all capital raised back into their company.

At the end of the day, I estimate LTNC continue to show triple digit growth and will have about 35 million shares outstanding and 18 million shares in the float. That is an INCREDIBLE share structure for a company that is trading at .04 cents a share.