Ann: Managing Director Resignation / Appointment, page-6

This is not specific to LCM, but there is a huge difference between a tax credit for R&D, and patentable R&D or truly unique IP that gives you a competitive advantage.

There are a number of companies that make a living writing R&D proposals for companies to qualify for a tax credit. In a lot of cases, there is no retained IP (or the IP is retained with the individual rather than the company), but there are some companies that do. For example, Hatch would be recognised as world leaders in HPAL, or Conoco Phillips and Bechtel would have IP or a reputation for LNG.

In LCM's case, the fact that it is such an obvious contributor to its profit could indicate growth in IP (competitive advantage) or simply efficient tax management. Either way, it is a positive unless the R&D tax credit is driving the profit and hiding an underlying weakness. I am not smart enough to know.

With respect to a 5% drop in numbers, again this could be read in two ways. At face value, that could be considered very good given the environment. Alternatively, the loss of one key person who generates significant work for others within the company, generates high margin and re-imbursability or takes clients with them when they leave may not be reflected in gross employee numbers. Again, I have no idea what the truth is.

I did some MBA subjects as part of my master's degree. About the only thing I learnt from that was to be very cynical about reports, whether they be financial or scientific.

Unfortunatley, this knowledge has not resulted in me being a very wealthy retired investor and I am still working for a living, and my lifetime share trading history is significantly in the red.

One thing to know what to do, another to have the discipline to do it. This is my opinion only so do your own research, but I hope this adds to the conversation.