Another Round Of Pump Emails for Labor Smart Inc. (OTCBB:LTNC)
We must admit that when yesterday we once again started receiving alerts about Labor Smart Inc. (OTCBB:LTNC) it didn’t surprise us that much because this makes it the fifth such campaign since February.Traders thought the same seeing how the price only nudged upwards by a little less than 3% to close at $0.38 albeit on an increased traded volume of 400 thousand shares.
The company is trying to provide temporary labor to a variety of industries and since the start of the year it has undergone a vast expansion. With the recent acquisition of Qwik Staffing Solutions, Inc. LTNC increased it branches to fourteen. A positive news for investors is that the deal was made without any issuance of new shares.
A not so positive news is that most of the affiliates of James Connely and more precisely PennyStockProphet, MarketCaliber and PennyPickFinders have started touting LTNC for the compensation of $30 000. They are also joined by StockBuzz who received the much smaller sum of $7000 for their services. Almost all of the promoters relied heavily on LTNC“s significant revenues in order to convince there subscribers that putting their investment in the stock is a wise choice.
We were in luck as the start of promotion coincided with the filing of LTNC‘s quarterly report. Now we can see for ourselves what the financial situation of the company really is, at least for the three months ending March 31:
- $125 thousand cash
- $1.6 million total current assets
- $1.5 million total current liabilities
- $2.5 million revenues
- $649 thousand net loss
So the substantial amount of the revenues are still not enough for the company to turn a profit. If the addition of the 8 new branches will help to remedy this remains to seen. For now the LTNC are still relying on the issuance of new stock to pay for its expenses.
Another pump that PennyStockProphet took part in recently had a much disastrous effects. The ticker of Helmer Directional Drilling Corp. (OTCBB:EXLA) bombed hard losing more than 70% of its value in single session and it hasn’t been able to recover since then.
Each subsequent pump for LTNC has been having less and less effect on the movement of the stock but that doesn’t appear to deter the newsletters. Still the volatility of any penny stock should never be underestimated and doing your own research is always a must.