Labor Smart Inc (LTNC)

[GrowthStocks99]

I Think There Are Only A Few Possible Outcomes With This Situation.

I also think it is possible all of this is being orchestrated by the 1.1 million note guys. Read the 8K and you will see they are very careful with their investment. LTNC can't default on anything or the notes come due. These guys won't let LTNC get pushed into bankruptcy.

The trading activity looks like all the other notes are being allowed to convert. Asher converted? He was always paid off first in prior notes.

Buy back later? Possible. Or not. When and if the 1.1 million start converting the share count will be out of this world. The 1.1 million note guys would effectively be buying the firm. The balance sheet would be clean and the business would be profitable. They would own a super majority. Do a reverse split and they did very well. Schadel would be out or hired as a manager. After all what is his stock worth today? 15 million shares times 1.5 cents = 225,000 dollars.

I don't think those in the know care where the PPS goes.

DD2Gain wrote:

What do you think of the possibility that Schadel is allowing all the notes to convert to buy back later? I thought some time ago that this would be his best (now his only) option. However, I think it's too late. I very much doubt that there will be much if any cash generated this year with branches each expected to average $200,000 less of total revenue than 2013. There isn't much cash to begin with ($300K). The 1 billion AS will absorb what is left to be converted, but there has to be no more notes acquired and I am highly doubtful of that. I just don't see where the money is going to come from to fund operations and certainly not to acquire any more branches next year. With that tax lien in place, we all know toxic financing is the only financing that can be secured and after the pps falls to whatever the fully diluted price will be the shares left won't be worth all that much. So, what have we got?