LUM 0.00% 2.3¢ lumacom limited

facts and figures

  1. 9,386 Posts.
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    Well lets look at lums figures since brokerage houses arent ready to release their valuations yet.
    Now the market usually trades at a p/e of around 16...banks around 17 and growth stocks 20.
    20 is a very conservative p/e for a growth stock...many growth stocks have p/es in the 100's depending on how good the story is but we'll use 20 anyway for now.
    So far we have 4 deals locked in ..the barcelona deal is worth 1 mill per year in earnings for 7 years...the 3 announced last week are said to be based on the same structure as the barcelona deal so thats earnings of 4 mill currently.
    So 4 mill x 20 = 80 mill of a share price of 80c+...this is a very crude analysis but close to the mark ...5 mill in the bank adds on another 5c so thats 85c +.
    Now we still have the new york deal...reportedly worth roughly 48 mill to be split between lum and totius over 7 years giving roughly another 3 mill per year in earnings.
    On that p/e of 20 this now gives us a share price of $1.40 +crudely.
    LUM is currently trading at only 56c...there announcement last weeks states another 30 potential deals in europe alone that they are in talks for.If these are at the same figures thats another 30 mill per year or worth $6 to the share price(20x30mill =600mill/100mill shares=$6).
    $6 plus $1.40 =$7.40.
    Sure this is based on speculation...but her where have i speculated on the delas to come from the rest of the etc etc and no reason why more deals cant be wrapped up in asia.
    This is big your own figures and if you like divide mine by half and tell me what you get?
    Go lummettes!!!
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