Labor Smart, Inc. (OTC:LTNC) Pump Chugs Along
Yesterday the pump of Labor Smart, Inc. (OTC:LTNC) that we have been following for some time picked up more speed as the stock closed another 17% up. Pumpers followed suit and pushed out a new round of promo emails.
Promoters Awesome Penny Pick still refuse to disclose the compensation they expect to receive. However, this time around the pumpers from Penny Stock Buyers disclosed an exact sum in their email’s disclaimer, detailing they pocketed $20 thousand for their promotional efforts and expect to receive additional compensation.
The pump coincides with yet another hype PR move on part of the company that announces their intentions to open new branches in three different states. Apart from the bold optimism of the release and the pumps touting a revenue increase of 4,400%, there is little else that could give investors much confidence. The company’s last official filing is still the one from 5 months ago, containing their deflating performance figures:
- ZERO cash
- liabilities of $863 thousand
- quarterly net loss of $131 thousand
The fact that ever since that filing the company has given no official information on its situation and has only hyped up revenue in the form of PR fluff is hardly the best way to attract serious investors. The fact that the company has gone so far as to tout its bi-weekly revenue through press releases makes it look more like it’s desperately clawing for some investor cash.
Promoter Penny Stock Buyers’ track record is far from stellar either. A very recent example of their work is a pump on Southern ITS International, Inc. (PINK:SITS) that they started on Feb 9 to a tune familiar from LTNC – low float and bullish trend. The stock crashed spectacularly over the following days after an abrupt climb and is currently about 66% down from the pump’s high.
Traders who feel blessed with prophetic powers may want to take a stab at LTNC while it still runs. However, our advice remains the same – never trade promoted stocks, targeted by paid pumps, unless you have a stomach for the crashes that often come about once the pumping stops.