Labor Smart Inc (LTNC)

[sobe4life]

Let me help you with some answers to your very valid questions...

1337trades

The question is, labor ready eventually got to profitability. Will labor smart? And if/when it does will it see the valuation surge that labor ready experienced?

To understand the industry is to know that profitability is built on the accumulation of critical mass. It is nearly, if not, TOTALLY impossible to grow your company and show net income at the same UNTIL you reach a certain threshold.

In the case of LTNC, they feel if they were to completely stop growing today they could show net income after satisfying what's left of their notes. However, as a public company looking at THE BIG PICTURE, this is not where they want to be as far as building shareholder value, so the growth will continue. I believe that once they hit 45+ branches they will have obtained enough critical mass to be able to show net income while continuing to grow.

As far as valuation, I have to be COMPLETELY HONEST! I do not believe that LTNC will ever get the respect it deserves while it continues to trade on the OTC market. Let's face it, the OTC market has turned into the scourge of Wallstreet. It is best suited for pie-in-the-sky companies not companies with real operations. The key to LTNC's success as a public entity lies in their ability to grow their operations to a point where they qualify to uplist to a larger exchange. Once this happens, a plethora of opportunities will become available that will benefit both the company and its shareholders.

That is why I view this as a long term investment. The fact that this company gets no respect on the OTC market has created an opportunity for us to accumulate the stock. Once they announce an uplisting the opportunity will disappear very quickly.