There was no news yesterday about on demand blue collar staffing services provider Labor SMART Inc (OTCMKTS:LTNC) but that did not stop a free fall in the company’s stock. Investors seemed to have soured on the stock and amidst a heavy selloff, the Labor SMART stock tanked by as much as 33%.
However, in this situation, it could be a better idea for investors to take a closer look at the company and its business. While on demand staffing solutions services have been the cornerstone of its business, earlier on this year in March, the company announced that it was going to diversify its business.
To that end, Labor SMART announced that it was going to become a holding company with interests in a diverse range of businesses. The first step from the company in that direction was the completion of the acquisition of Takeover Industries Inc.
That acquisition marked a major shift in focus for Labor SMART considering the fact that Takeover Industries is an early stage company which is involved in making beverages. More important, at the time of the acquisition, the company had not recorded any revenues either. Takeover has been operating as a subsidiary of Labor SMART since the acquisition.
Market Reaction:
On Wednesday, LTNC stock slumped 33.33% at $0.0057 with more than 469.91 million shares, compared to its average volume of 113.13 million shares. The stock had moved within a range of $0.0056 – 0.0087 after opening the trade at $0.0086. Over the past 52-week, the stock has been trading within a range of $0.0000 – 0.0875.
 Stock Continues to Fall: Where is The Bottom?){kind=link}