durst 1mil, page-5

re: ts, negotiations and pricing Yes, $46-$47 mill as gross income for 7 years was bandied about last year. (Times square, NY, 4 signs).

However, that was some time ago; if that were the number now, then the signs would have been up long ago.

So what happened?
There must have been something that made them think that they could get much higher gross income. It has only been lately that the virtues of outdoor advertizing have come to the fore.

The superior techniques, relaying of messages to the sign, clarity and distance of vision as well as savings in costs and maintenance have a lot to do with it.

It is clear that the Totius marketing Director wanted more and it is here where delays have come in.

I believe they could get gross $4.5-$6 mill per sign per year. That translated to $18-$24 mill. for all 4 signs. (unless a special provision was made for 1 sign).

That $1 mill/year per sign lease payment to Durst has been mentioned in a couple of articles. Whether the writers borrowed that from each other, that I don't know but I can understand it in that context as referred to previously.

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Advantages of advertizing on these signs and the spin-offs to LUM have been referred to before.

However, the TS signs are also a yardstick and the Totius Director would be well aware of that.

It is quite possible that more signs could go up in the immediate vicinity and the Director will be trying to use some relationship with TS to bump up the gross income from these projects to come as well.

One reason why IMHO no further signs in NY have gone up: they do need to finalize the TS agreements first.

So, there is a lot at stake here. Not too difficult to understand what a high gross earner would do to the LUM share price.

Wait for it.....

That is my opinion,

Gerry
Readers, please do your own research and you decide if and when to buy, hold or sell any stocks.