Labor Smart Inc (OTCMKTS:LTNC) is drifting after the run it made it made in October to highs of $0.09 a share. This one has fallen significantly form the highs it commanded last year over $0.50.
The CEO of LTNC Ryan Schadel commented on the continued downward drop of the stock “We have a number of investors who have purchased convertible debentures. This funding has been vital to our rapid expansion. In less than 3 years, we have built a sizeable business with outstanding prospects. For the most part, we have had a good experience with these funders and until recently have not experienced an aggressive exit of their position in the open market. However, one of these investors exited their position over the last few weeks in a very aggressive manner, causing a vicious drop in our stock price and market cap.”
Labor Smart Inc (OTCMKTS:LTNC) provides On-Demand temporary labor to a variety of industries through 30 offices. The Company’s clients range from small businesses to Fortune 100 companies. Labor SMART was founded to provide reliable, dependable and flexible resources for on-demand personnel to small and large businesses in areas that include construction, manufacturing, hospitality, event-staffing, restoration, warehousing, retailing, disaster relief and cleanup, demolition and landscaping.
On October 30 LTNC announced that the company will be expanding its social media presence to include, on occasion, material non-public financial information.
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“The SEC has provided guidance to issues regarding the use of social media to disclose material non-public information. In this regard, investors and others should note that we announce material financial information on our investor relations page, which can be found on our website, laborsmart.com. In addition, we will be expanding our presence on social media to include it as another means of communicating with the public about our company and our services.”
According to the Company’s website ”Labor SMART is emerging as one of the premier temporary labor providers in the United States because of our commitment to reliability, flexibility and dependability. Our staffing professionals are ready at a moment’s notice to help your business meet its immediate production deadlines, staff shortages, or short notice temp labor needs for any task.
When it’s your business to maximize productivity with a temporary labor staff, it’s our business to provide you with the best of the best in on-demand labor. Whether you need a short-term helping hand, a skilled team of craftsmen, or a team of long-term laborers, Labor SMART will provide the muscle you need for your business.”
From the last 10Q LTNC announced $6,437,976 in sales for the 3 months ended June 27, 2014 up from $ 4,037,040 for the comparable period in 2013. This puts the Company on track to to $20 million in 2014, huge numbers for any bb stock.
Conclusion: LTNC has come to live with an explosion of trading volume and short term price swings after months of downward drift since the stock was over $0.80 per share back at the beginning of last year. The culprit is rapid expansion paid for by massive dilution to the point where current debt holders are destroying the stock price.
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LTNC is a growing Company with significant revenues and a CEO that seems serious about growing the Company long term. Maybe if they can get the debt holders out at current cheap prices and put these shares into strong hands going forward LTNC might be ready to for a significant reversal in fortune. Currently trading just over its recent $0.017 all-time lows LTNC is a stock to watch here and might just provide a spectacular trade opportunity in the coming weeks and months ahead.
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Disclosure: we hold no position in LTNC either long or short and we have not been compensated for this article.