I see as part of the acquisition LUM awarded Vertigo 115 million performance shares. There is also mention of 6c being attached to those shares and the necessity for Vertigo to attain numerous EBIT targets.
Do Vertigo have the right to exercise these shares at 6c or are they free to Vertigo upon reaching the EBIT targets by the given dates? Would appreciate anybody who can answer, perhaps rgold would know these details.
I agree that things are looking better for LUM than they have in years. It certainly is pleasing to see some revenue showing up in the quarterly results. It could be vastly undervalued, especially if Vertigo can continue rolling out new contracts as they have been doing over the past month or so. LUM can genuinely be compared with numerous technology stocks now that it generates income (although it is still running on a modest cash burn). However I would struggle to find a cheaper comparible company. NWT the old MUL has a market cap of $50 odd mill, QTK who has similar revenues to LUM has a market cap between $70 to $80 mill!!!
If LUM keep announcing new contracts this will become a traders darling, i saw it years ago with the likes of MUL..... the turning point will see a day when 50 or 60 million shares go through it. Big chance for a turnaround story i think now that they have a tangible business.
LUM Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
