Replies to post #14275 on Labor Smart Inc (LTNC)

[cpw13154]

Lol. Please don't tell me we are trying to say revenues are only counted when they are paid in full lol..

[pennystockmentor]

All of this is irrelevant. The end of the year is full of holiday weeks (people dont work as much so the company doesnt bill as much). They also derive alot of their revenue from construction. Construction slows in the winter. Add the 2 and you get slowing revenue. People who say the company should not show decreases month to month ever have no clue about this industry ( or any business for that matter). People doing real DD have looked at companies like True Blue for example and see that even in their 10k they disclose slow down periods. In fact, its even in LTNC's 10k - see page 14


"Many of the Company’s customers are in industries affected by inclement weather that can slow ordering activities significantly. As a result, the Company expects to generally experience a significant increase in temporary staffing demand in the spring, summer and early fall months, and lower demand in the late fall and winter months."

AND page 5 from True Blues 10k

"Our business experiences seasonal fluctuations. Our quarterly operating results are affected by the seasonality of our customers’ businesses. Demand for our staffing services is higher during the second and third quarters of the year and peaks in the third quarter. Demand is lower during the first and fourth quarters, in part due to limitations to outside work during the winter months"

Real DD folks. Real DD.