whats with the 1 million order,, page-5

re: since when i ask........icurpoint In one of my previous posts today I highlighted just how sought after outdoor advertising space is in the Times Square precinct. In fact a 300 foot tower is being built specifically for outdoor advertising. Why then can't the LUM sign attract someone?

LUM are asking $1.3 million per year, we know that at street level advertisers are paying six figure sums per month so the asking price shouldnt be unreasonable. In my opinion this narrows down the possibilities to:

1. The product has been over rated by Australian investors and the advertising market want a daytime video screen, not be limited to night time images.

2. Clear Channel aren't trying.

Why would Clear Channel not be trying? Again I can that by all reports both the signs in Turkey and New York do look impressive and I am only speculating but why settle for 15% when they could earn 100% by picking up a sign for peanuts from a cash strapped company such as LUM within the next few months. Some people believe that Clear Channel don't purchase signs outright but I know for a fact that they bought dozens of signs outright from Daktronics a few months ago for a busy highway. Perhaps Durst would like the sign for themselves, I believe that Durst are a customer of Clear Channel's on other sites.

I repeat that I think the best thing LUM can do for now is concentrate on sales and steadily build up their cash reserves and charge like wounded bulls for servicing. In fairness to Rodd he has always argued that sales were difficult to achieve when there was no product out there for buyers to view. This is no longer an issue, by all reports both Istanbul and New York signs have impressed. Two brokers on the eastern coast of Australia have also voiced their doubts about the joint venture model and Challenger Financial Services refused to even meet with Rodd.

Worst case scenario according to my calculations from LUM's last two half yearly reports is that LUM are 1 year into a $250k US per year lease agreement with Durst over a 5 year period. Even if they dont attract an advertiser within the next 4 years they can walk away at a cost of a further $1 million US. If LUM can manage to attract some sales agreements in the short term they could virtually afford to carry the 4TS burdon but surely something will resolve itself before too long.

I have held this stock for the past 9 months and have totally had a gutsfull. It is a crazy situation when you compare LUM to dozens of other speculative stocks including explorers, biotechs, and the like and recognise that LUM do actually have a worthwhile product but have failed thus far to do anything worthwhile with it....