Labor Smart Inc (LTNC)

[DD2Gain]

Excellent article on LTNC: http://www.hotstocked.com/article/92639/labor-smart-inc-otcmkts-ltnc-is-back-with-a.html

Labor Smart Inc (OTCMKTS:LTNC, LTNC message board) managed to add 37.50% to its market cap yesterday, after making a positive announcement.


Upon first glance, the PR was excellent indeed – it made LTNC management look like it actually cares for investors. However, once you look closer, some inconsistencies start popping up.

First off, even if LTNC is to buy back and cancel $2 million worth of its common stock, at the current rate this will reduce its shares outstanding by about 2 billion – give or take a couple of hundred million. Last time we checked, LTNC had 7.8 billion shares outstanding, as of about two weeks ago.

So even if the company goes through with its plan, and carries it out completely, its effort still will not make all that much of a dent in the enormous pile of unpleasantness that is its share structure currently.

Secondly, where is that $2 million going to come from? Last time we checked, the company had just:

cash - $127 thousand
current assets - $3.3 million
current liabilities - $8.5 million
quarterly revenues - $5.7 million
quarterly net loss - $560 thousand
With this in mind, the inconsistencies between LTNC’s words and its actions should be more than obvious. Investors would do well to note said inconsistencies well and think long and hard on what said inconsistencies mean before committing to LTNC stock.

Yet it only scratches the surface of how bad this CEO has screwed up the company.