Labor Smart Inc (LTNC)

[sobe4life]

<<<<<<WRONG WRONG CPW13154 WRONG WRONG>>>>>>

cpw13154

Wow 1.7 million lien with IRS
4.5 million in toxic notes
PPS ready to go below a penny
revenues way off on the latest 17 additions
CEO pulled out all his investments
All signs of trouble times ahead

1. There is no $1.7 million dollar lien. The sticky that we keep referring to has the wrong information.

2. LTNC does not have $4.5 million in toxic debt.

3. LTNC is already trading at its 52 week low. Operations are performing at a high and with only 55 million shares outstanding, this stock is already undervalued.

4. The latest 17 additions were established this year. Revenues can't be down when there are no previous year month to month to compare it to. However, with the 17 new additions the company is projecting $25 million in 2014 vs. $16.1 million in 2013.

5. LTNC is projecting $25 million in revenues, has $4 million in accounts receivables, EBITDA of approx. $350,000 and around $1.5 million in cash. There is nothing wrong with the CEO paying himself back on the interest free seed capital loan he gave the company when they started operations.

This is the company that we are being lead to believe has "trouble times" ahead......

-2011: $165,000 revenues (audited)

-2012: $7,100,000 revenues (audited)

-2013: $16,100,000 revenues (audited)

- Revenue for the nine months ended September 26, 2014 increased 52% to $18.1 million as compared to $11.9 million for the nine months ended September 30, 2013.

-2014: $25,000,000 revenues (PROJECTED) with the company showing $4 million in A/R, $1.5 million cash (PROJECTED) and positive EBITDA

-Growth from 2 to 30 branches in just three years

As of 11 November 2014:

-Increased gross profit margins from 15% to 25% over the last 12 months

-Revenues up 28% to $6.8 million vs. $5.3 million a year ago

- Same branch revenue up 12.5% year-over-year

- Added 315 new customers

- EBITDA of $121,577

- Adjusted EBITDA of $344,731

Outstanding shares as of November 4, 2014: 55.5 million.