Replies to post #17671 on Labor Smart Inc (LTNC)

[1337trades]

I agree with most of this. Most of the note holders could care less about the fundamentals. You can't give them a reason to do anything other than what they do: convert and sell. I think the CEO knows that and I think he's done an impressive job managing these noted for what they are. He's been using this kind of financing for 2 years and to have an OS of only 44mm is nothing short of a miracle. He clearly knows what they are but also clearly made a mistake with one of these notes, either misjudged the fallout or something. Months from now when it's no longer material I would like to hear the inside story. I imagine it's something made for tv. I say that because this company has gone to great lengths to control dilution until 4 weeks ago. Something occurred (we'll never know for sure) that had him allow a nasty note holder to convert...something LTNC has prevented for 2 years.

That's the past though and as you state there are some things that need to happen if LTNC is going to have a pps appreciation.

1) Current toxic notes go away  Agreed, but personally I would like to see at least half of them converted into the market. If he pays them out of cash the stock will move before I have the position I want. Greedy I know.
2) Toxic notes are no longer acquired when the current debt is extinguished by conversion or otherwise LTNC will have almost no debt and a TON of revenue and cash flow. Getting conventional financing will be much easier imo.
4) The company demonstrates a consistent trend toward earnings 

I think this is already happening. Look at the last few quarters. Adjusted ebitda last quarter was around $400k.

Regarding expansion, I think he has made a good choice to slow or stop new office openings and switch more to acquisitions. This will REALLY fuel earnings, especially with no convertible debt on the books.

All imo of course. Do your own DD.