agm

There has been a lot of talk recently on LUM. Mostly from "downrampers" (although I am incline to think that they made the right call from short term) and a lot of "supporters" (who made the wrong decision in the short term)

I doubt that LUM is likely to make any announcement until the options are approved at AGM and issued to directors. At the end of the day, 150,000 options are going to be issued to directors with exercise price of 125%, 150% and 200% of the market price at the date of which the option is announce. Common sense will dictate that it is against directors interest to push up the share price, since this will result in the exercise price to be higher. (I may be completely wrong as this may be against their corporate governance policy)

Datasponge and sweetbananajoe has been bagging this share for awhile now. You have to admit they were right since LUM lost almost 20 cents in the past few months. If you are a trader, wake up and breathe the air. The momentum is/was against LUM. If you were dumb enough to be accumulating in 70-80, just admit you make the wrong decision since it is trading at the mid 60s right now.

However, if you are an medium/long term investor, I believe LUM has a long way to run. Their product appears to be well accepted by the market, which is the primary driver behind success of any business. I have no idea on their profitability, but with a strong uptake of revenue, profitability is bound to be "inevitable", since the primary cost is the cost of building these signs. Maintenance and operating is likely to be low in accordance with the statistics in the annual report.

As Corvette has mentioned which I totally agreed with, 4 Times Square is all the publicity LUM needs. Contracts are not agreed on overnight. LUM isn't your local deli where inventory turnover is high. They are actually discussing signs that are in the million(s) so it is normal for these discussion to take awhile.

If you are a medium/long term investor, I think LUM is a great bet, and holding it in excess of 12 months will allow you the 50% discount for capital gains tax benefit. If you are a short term trader, you better be a great trader. If not, you have a better shot with baccarat at the local casino.

Datasponge - It is quite common for developing companies to raise money from the public. That is one of the purpose for listing on the stock market. Given that their accumulated losses is only $5.27 million and they only raise $6.3 million at 30/06/03 this is actually quite good.

If anyone post any more message like "my mate sat next to Rodd Sala on a plane", Datasponge and sweeetbananajoe have my blessings in ridiculing these messages. I don't mind supporters but that is just ridiculous. Whats next?? "I am a taxi driver and I drove Rodd Sala home and he happened to tell me about LUM?"


I hold LUM.