the 10c per sign was in an article on an interview with sala quite a while back...before the options diluted the share base. If you include the excercised options you can turn that 10c figure per sign to around 6c per sign.
This is quite a good perspective and also adds to around 6c per share for each sign.
Remember LUMs product is significantly cheaper to build,uses only a fraction of the parts of a regular sign,costs significantly less to run (electricity wise),requires significanly less maintenance and also has a lot longer lifespan due to the above. assuming staff costs double and other costs remain the same......including depreciation at 5% on signs also: All $ in AUD, simpler. Sales revenue = $750K per sign Cost of each sign $4.5m Earnings multiplier of 12 calc value per share on est EBIT 10 signs EBIT 3.8m = $0.46 per share 20 signs EBIT 9.0m = $1.09 per share 30 signs EBIT 14.3m = $1.72 per share
with jv arrangements, no additional o/s marketing costs to be borne by LUM.
LUM Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
