for the final time...., page-8

re: blueballs is junior -"lum his favoruite" Subject re: gominer's comment on lum?
Posted 07/08/03 16:48 - 151 reads
Posted by junior
Post #120203 - in reply to msg. #120167 - splitview

This is my favourite spec stock still,the reasons I like it more than anything else are....

1) It has a product that is very to understand how it works.
2)It has a simple marketing plan that is very effective and has already established massive partners in the advertising arena.
3)It has less than 100 mill shares on issue with the company founders owning the majority(tight)...no debt and cash in the bank so no need for capital raisings.
4)It locks in revenue deals for a number of years at a time, with very good margins
7)They have the best product in the business from what I can see(happy to be proven wrong)and in a market worth billions anually
6)The MD is currently in Europe and the USA drumming up more business and closing deals...so there is definately gonna be a flood of good news coming...obviously there will be announcements in the next few weeks about the revenues from the new york deal... aswell as for the starting and finalising of the project.I also expect more deals to be forthcoming from Europe as an added bonus plus more potentail deals in the US and northern America and i see LUM has also begun marketing in Asia.
6) An established uptrend is in place with consolidation happening right now...most stocks that make the same move as this have imo an 80%+ chance of moving higher

My back of the envelope figures are ....
market cap 35 mill currently...each average sized sign to bring in earnings of roughly 500k per annum(conservative imo as barcelona is 750k).So currently if you put LUM on an average p/e of 17 earnings need to 2 mill per year which is 4 signs...the latest deal alone is for 4 signs.Once the company can get 20 signs locked in Id be expecting a share price of close to $1,so far they have roughly 6 or 7 on the go.So in my opinion the stock is priced fundamentally where it should be now ...the beauty is no speculation has really been added onto the share price yet and this company is all blue sky,every deal it does it is basically advertising itself and therefore opening up the doors for more potential deals.
Why the punters are yet to wake up to this stock in droves yet i dont know...I guess they are awaiting finalisation of the Times square project( the worlds biggest might I add).
You may call this a ramp ...I honestly dont care...all I suggest is you do some research and see for yourself,Id be happy to see no churn and burners at all on the stock ,but I know eventually they will get it on the action.

Time will tell...