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Re: None

Wednesday, 12/03/2014 7:58:58 AM

Wednesday, December 03, 2014 7:58:58 AM

Post# of 84325
PERFECT EXAMPLE OF WHY WE NEED TO DO DUE DILIGENCE.....

Over the last several months I have dedicated a tremendous amount of time in making sure people know the actual facts about Labor SMART.

Yet for all my efforts, I still see the same misinformation being spewed out there while a very select few choose to ignore the facts in lieu of an obvious negative agenda.

I can't urge enough the importance of not believing what you read on message boards! Things like this stock was trading at .80 cents earlier this year, the company repeatedly fails to pay their taxes or they are still adding more toxic debt are not true.

The IRS issue that we are reminded of by having it forced down our throats on this board every single day has long been resolved. The company is fully compliant with all their tax obligations, and while they are making installment payments on the one quarter of taxes they fell behind, it does not effect or hinder the growth of their operations going forward.

If anything positive happened for us shareholders, it's the fact that under their Agreement, the company must be compliant and current with all their IRS tax issues on a going forward basis.

Labor SMART has triple AAA credit and pays all their bills on time. They generate more than enough revenue stream to supplement all of their obligations without further issues. Anyone saying that they repeatedly fail to pay their payroll taxes will not be able to back it up with any type of verifiable proof because it doesn't exist.

This company has grown from 0 to 32 branches. One branch consolidated into another from an acquisition and one branch (Houston) was closed due to poor performance. The Houston market was closed because the company could not compete with the abundance of cheap labor stemming from the large population of illegal immigrants, willing to work below minimum wage, in that geographical location. Because this company does everything above board, hiring illegal immigrants is not, and never will be, an option.

However, overall, opening up 32 branches with only one failure is still a 97% success rate. I don't think anyone who is investing in an aggressive growth company could ask for more. The other 97% are producing record numbers for the company and we should look forward to a continuation of this growth and success in 2015.

As far as convertible debt. It is the plague of the OTC and even a great company like LTNC has had little choice and zero options but to borrow from hedge funds in order to grow their business. And, while we are extremely impressed with what they have done with this money, they are paying a heavy price with where the stock is trading at today.

The company now generates enough revenue stream to where they no longer need to borrow funds like this anymore. However, the notes still need to be paid. The company will continue to allow some notes to convert while the prepay others. Every day the company's exposure to these notes gets smaller and smaller.

Yet, with all these conversions, the company still only sits at about 60 million shares outstanding and the stock trading below a penny!

Adversity creates opportunity and that is where we come in as smart investors. Very rarely will we see an OTC company that actually has an operating history that proves that management can do what they say they can do.

Very rarely do we have an opportunity to invest in a company at the bottom of its trading range when the operations are doing so well.

I invite EVERYONE to do their own due diligence in order to verify the accuracy of what I am stating because as a previous investment advisor, I would be hard pressed to find another opportunity out there in the OTC market like Labor SMART.

Here are some highlights that should be easy for anyone to verify:

-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 million cash (PROJECTED) and positive EBITDA

-Growth from 0 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

- Over 1400 customers

- EBITDA of $121,577

- Adjusted EBITDA of $344,731

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