Labor Smart Inc (LTNC)

[sobe4life]

WRONG, WRONG, WRONG ON EVERY LEVEL.....

DD2Gain

LTNC is not the only company on the OTC with "real" revenues and operations (what are fake revenues?) and a positive EBITDA. They are numerous and the majority of them are failing.

With over 14,000 companies trading on the OTC Market the word "numerous" means ALOT to me. However, I haven't found this to be the case when it comes to OTC companies that have real operations, revenues, assets, positive EBITDA, etc.

I know that I have asked for examples of these "numerous" OTC companies but I guess I will just have to believe that they are out there BECAUSE I AM TOLD SO!

DD2Gain

LTNC is not even close to net revenue.

Well that statement is WRONG!

Every single quarter we see revenues up, gross profits up, EBITDA up and yet we are suppose to believe that this company which has been in business under 3 years is failing. Look at their numbers quarter by quarter. They are getting stronger and stronger.

DD2GAIN

Millions of dollars in convertible debt. Millions more in convertible debt GUARANTEED so long as there is a tax lien in place.

Pure smoke and mirrors. Labor SMART has an Agreement with the IRS in place. As part of that Agreement they can NEVER fall behind in IRS tax obligations and allowed for a lien to be put in place. They now make scheduled TIMELY payments and are considered current. The lien (which is NOT even a first position lien)has ZERO to do with the company needing to raise capital through convertible debentures. As a matter of fact, the company does not need a loan at all when it comes to paying their taxes.

DD2Gain

Millions of dollars more in additional convertible debt means an OS of at least 200,000,000 soon as warned by the CEO (1 billion OS required to meet 5x CURRENT dilution requirements).

I'm not sure where we MAKE UP and fabricate "millions of more in convertible debt" This is not going to happen. Factually, the company is REDUCING their convertible debts every single month, moving forward. Additionally, the revenue stream is now sufficient to pay for their operations. If they want to continue growth, they will have to look for better financing, however, at this stage, they can hold their own.

Dilution warned by the CEO? OS of at least 200 million when they currently have less than 40 million?

ACTUALLY, the exact opposite:

Quote from Ryan Schadel CEO October 22, 2014 Press Release

"Today, I am taking a proactive step of increasing our authorized shares to 1 billion. I want to be clear, there is no intent to issue this many shares and to the contrary, this move protects shareholders from massive dilution that would occur if we failed to reserve properly and caused a default on these debentures. Many will ask, "But why 1 billion?" In case there are parties who believed the company could be pushed into default of these debentures, 1 billion authorized is such a large and unneeded amount, I believe it insures a default for lack of reserve is now impossible. Once these debentures are removed from our balance sheet, the board of directors will move to reduce the authorized shares back to a more reasonable number."

DD2Gain

Negative net worth of $2.2 million.

That number will be getting smaller and smaller every quarter on a going forward basis. Shame on this company for taking on debt and liabilities in their first 3 years of operations. Once they remove all their debentures they will actually show positive net worth!

At least they have record revenues, triple digit growth, improving gross profits and positive EBITDA to show for it.

This is a good laugh.....

DD2Gain

Annual revenue averaged per branch projected to decline by 20-25% for 2014.

Labor SMART started out 2014 with 14 branches. They acquired 2 branches and opened 16 BRAND NEW BRANCHES. Yet we are lead to believe that even though LTNC continuously posts record revenues every month, quarter and year, that their "projected" revenues are going to be down 20-25%!

How? Well, easy.... You take all these brand new branches and add them into the equation of the already established and mature branches without giving them time to mature and establish a client base. Obviously a branch 3 months old is going to produce far less revenues than a branch that is over one year old. OVERALL, revenues are going to be up. But if we take these new branches and add them into the overall revenue mix then it looks like the average down. That is why it is important to look AT THE BIG PICTURE and look at YOY same branch revenues (which takes new branches out of the equation)in order to determine whether the company is growing or not.

OR..... Just look at this:

2011 - $165K revenues
2012 - $7 million revenues
2013 - $16 million revenues
2014 - $25 million revenues (on-target projection)
2015 - $40 million revenues (projection for existing branches)

Sorry, I fail to see the 20-25% "drop" with these numbers!

HERE IS THE BEST......

DD2Gain Wednesday, October 22, 2014 2:44:58 PM
Re: None Post # of 17342

Just sold my position.

I'm still green overall, but now I'm waiting for sub penny. I am floored at how fast this stock came crashing down with obviously no plan by the CEO to address it properly. The bounce should be awesome, but it is not likely to happen anytime near as soon as I thought. The dilution machine has just started.

That was October 22, 2014 when the LTNC stock was at .0175 bid. Can you imagine if I had listened to this advice where I would be today now that the stock has already touched .08 cents on its way back to .20 cents??????

LOVE IT!!!!