BPS initiates coverage on Labor Smart Inc (OTCMKTS:LTNC)

On 22^nd October’14, BrilliantPennyStocks.com initiated coverage on LTNC. The stock moved up by 60.83% since the coverage was initiated.

On demand, Blue collar staffing and recruitment services provider Labor Smart Inc (OTCMKTS:LTNC) provided updates on its operations to investors on October 22, 2014. It also attempted to allay fears of the investor community with respect to the steep fall in the price of its shares over the past few days.

Exit Of Convertible Debentures Holders

Labor Smart Inc (OTCMKTS:LTNC) CEO, CFO, Director Ryan Schadel went on to provide insights into the possible reasons behind the sudden dip in investor confidence in the stock. MrSchadel explained that the firm has a big set of investors who have bought into the Convertible debentures issued by it. He has blamed the sudden dip in share price, on the sudden exit of a few of those holders of debentures. The CEO contends that the aggressive dumping of these debentures into the open market has led to the “vicious drop” in the stock price and market cap of Labor Smart.

Operational Strengths

Mr Schadel then went on to shed some light on Labor Smart Inc (OTCMKTS:LTNC) operational strength viz a vee the current market valuation of company shares. He contends that the “public float was trading at less than 1 week's top line revenue” and hence is not a true indicator of the value of their business. He then attempted to reassure investors by reiterating that steps have been taken to prevent a recurrence of such dumping of its shares into the market.

Issue Of New Shares

Ryan Schadel also listed out to the investor community additional fall out which has transpired due to the untimely exit of the debenture holders. He explained that, “Our debenture investors require us to over-reserve shares for potential issuance. Sometimes this required reserve can be as much as 5 times the amount of shares.” In order to tide over the situation, he announced that the company has taken a decision to increase the authorized shares to one billion.

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