Labor Smart Inc (LTNC)

[nit2win]

IS THIS THE ANALYTICAL BREAKDOWN I'VE WAITED ALL THIS TIME FOR?????

cpw13154

OH where to start oh how about anywhere. MY GOD are we kidding. How about losing $100,000 right off the top with having to use there receivables. how about all the loans with huge interest rates. I mean you can go line by line and see there is no hope here but of course like I said they need to get accountants that can do that magic math. Maybe new auditors too. LOL

Due diligence on the temporary labor industry shows that it is commonplace for small to medium size businesses to factor their receivables in order to give them immediate access to monies necessary to fuel their growth. Even industry giants like True Blue (NYSE: TBI) used factoring during the development stages of their operations. However, the point brought up in the above stated quote is now moot since LTNC announced their new financing facility last month in July, which is set at 2%. The "$98,000" that was paid to their factoring company in the 2nd qtr. is OLD NEWS, as we all know! As the company develops enough critical mass they will eventually be self sufficient and will not need to borrow anything for their receivables.

Additionally, we should not forget that Labor SMART is less than 2 years old and has a very limited operating history. Because of this, conventional and traditional forms of financing are not normally available to company's unless they have extensive and consistent operating history's. This leaves new company's like LTNC subject to dealing with financier's or financing groups which are always more expensive than banks. Although a necessary evil, this is not indicative of what anyone's perception of Labor SMART'S operations are, or what the future holds for them as they eventually develop long term consistency with their operating history.

All that being said, I still await a DETAILED ANALYSIS and BREAKDOWN showing how Labor SMART's operations are failing!