Labor Smart Inc (OTCMKTS:LTNC) was a massive mover during Monday’s trading session rallying by 60% on above average volumes, which were 3 times the 30-day average turnover. The formation of higher tops and higher bottoms on the charts ever since the stock took support at its 50 day moving average is seen as a bullish sign.Labour Smart currently trades above all important moving averages. Momentum indicators clearly suggest that bulls have the upper hand at the moment and is seen pointing towards strong buying presence. Traders believe the stock could head to levels of $0.001 in the near term.
Labor Smart Inc (OTCMKTS:LTNC) issued an open letter to the President and CEO of The Staffing Group, Ltd. C. Ryan Schadel, the CEO of Labor Smart expressed the company’s intent to enter into a strategic alliance with the company. He stated that as the CEO of the Staffing Group is aware that they have bought 2 million shares of the Staffing Group followed by a Schedule ‘13D’ submission with the SEC.
The CEO of Labor Smart highlighted three different but related strategic proposals to the CEO of the Staffing Group. The first focus in the email was on leveraging synergies. Labor Smartreached a large deductible workers compensation plan last year that drastically lowered company’s cost of sales.
The CEO stated that a strategic alliance of the Staffing Group with Labor SMART could unlock profits and value hidden behind the incurred cost of workers compensation that the Staffing Group is incurring. He offered to work together so as to formulate a detailed analysis of the prospective gains that the company can make following strong workers compensation plan.
Schadel further focused on leveraging the experience, which in turn can benefit collective clients, employees and shareholders. The first part of the proposal is that both the companies work together to establish a joint venture to license the Labor Smart processes, methods and brand in addition to a management service deal whereby they will offer the required infrastructure to support an aggressive growth plan.
Labor Smart CEO also proposed that the Staffing Group should increase the count of Board from two directors to five directors, one of whom will be appointed by mutual agreement of the Staffing Group and Labor Smart, and the other two by Labor Smart. Schadel added that they are open to explore different alternative to get this proposal effectuated in a hassle-free process.