As I see it at this point, LTNC is a huge opportunity and also a huge risk. The company went through problems in the past and hit the bottom of no bid for months after huge dilution despite promises. As a result, investors lost money. Ryan Schadel, CEO, admitted the mistakes he did and started turning the company around followed by positive developments the most prominent of which is promising no RS and personally buying 2,88 billion shares out of which he canceled 706 million in a live event. His shares are practically a form of buyback as his ability to sell is very limited. Also a $2 million was announced but doesn't seem to be really executed as quantities bought, besides there was a court restriction halting it for 2 weeks supposedly ended last week's end. Since the turnaround started, the PPS went to an impressive 0.0013 from no bid during December/Jan with great expectations of much higher prices later. Since then the price has been generally falling with spikes every now and then. Ryan has been doing good developments and spending tons of money in paying debts and clearing the SS but so far it's been like he's pouring resources in a black hole, the PPS is simply going down. Positive developments and PRs are doing nothing but strangely getting tens of millions of shares dumped and every while the bid and ask get lower. The general trend direction is against what's supposed to be (down instead of up) and the proportional PPS appreciation expected to go with new developments does not exist. In fact the it's negative.
The trust Ryan built a couple of months ago is currently eroding and he's discrediting himself (in my opinion) for reasons among which:
- He's been late on the quarterly and annual financials without even providing an indicator which makes many shareholders worried (the most recent response was from IR a week ago saying "soon"
).
- Although he became very communicative a couple of months ago via Tiwtter posting continuously even about trivial things, many things that investors want to know are not provided (such as what branches sold).
- He suddenly stopped responding to anything related to the financials and obviously he's avoiding discussing the matter (check Twitter discussions on his account).
- There seems to be a fundamental problem such as naked shorting (
). He said that that the naked shorting possibility "the thought has crossed my mind" after rejecting the idea weeks before. And yet, shareholders know nothing or what he's doing.
- He's been unable to get a certificate for 1 billion of his shares for weeks (check the previous link) which might be because of naked shorting. There's a possibility that the problem is much larger that just 1 billion. What Ryan is doing to very and fix this problem? nobody knows.
Despite all that, Ryan doesn't seem to be doing anything except pouring more resources in the black hole without fixing it. As a result, LTNC has been flippers heaven for a couple of months. The billions of shares he bought show confidence and good intention (most probably) but the vague scene he has created doesn't help shareholders/traders evaluate the situation on the ground to validate Ryan's belief.
Ryan's silence could be for bad reasons that collapse the PPS back to no bid and could be for very good reasons and he drops a bomb that send the PPS skyrocketing. He could release the financials today, in a month, or not at all. The PPS could stall at 0.0004/6 for another month or two or jump to 0.01 in a week, nobody knows. Ryan is simply not helping anyone to know anything and buying/holding shares is currently based on faith rather than clear information and quantitative numbers/dates.
This makes LTNC a great opportunity because the above makes one able to buy in the trips with the probability of a huge jump later and the huge risk because it could also be heading to no bid. This statement needs to be reassessed as more information is provided and developments emerge.
I hope that helps in making your decision. Good luck to you and everyone.
Your money, your decisions.
