re: lum shareholders down the plug hole The shareholders are not...

re: lum shareholders down the plug hole The shareholders are not down the plughole just yet...

For a company to be forced into Administration it has to be insolvent (not be able to pay its creditors). Fortunately LUM has little if any debt. I have calculated from their most recent balance sheet where they declared $1.8 million in cash with montly expenses of approx $220k that they have sufficient cash reserves to operate as they are for another 6-7 months.

If Istanbul comes through you can inject another $1million per year US into their cash reserves so they are far from gone just yet. If they run out of money they can look at another capital raising if they have too, sell assets - 4TS or Istanbul - at least the technology is still on display and they maintain the rights to the technology via the patents, or god willing a decent client and/or jv partner will appear and assist LUM in a growth strategy with sites that are going to pay up minus the headaches.

I have declared on this site that LUM have what most other speculate tech stocks dont, that is a high quality product that is proven and ready for sale, whereas others are still in the lab or various stages of trials. If I had a position of influence with the company I would like to see a new CEO put in place, somebody who has excelled at marketing at an Australian university, if they have experience that is a bonus, I would like to see a strategy to increase the focus of sales within Australia, especially along the Eastern seaboard and leave international plans on the shelf unless exceptional opportunities arise. To me it looks like LUM tried to do too much too soon, most companies that try to expand overseas fail, look at AMP and TLS for example - giants in comparison to LUM....