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LUM 2.3¢

still way too cheap

  1. blueballs

    8,395 Posts.
    29
    For those who have not studies this stock either for its potentail,business partners or models I suggest you do so before thinking a 40c rise is the end of the run,how little you know.
    firstly check www.lumacom.com.au so you at least have a rough understanding of the technology and then got to the totius medai and mega profile website and have a look at those companies and the advertisers they have on board.

    Now to clear up the figures...lets look at future potential which is what we price most stocks on VCR is a classic example.

    Market is wirth 12 bill annually,nobody has a product like lum nor can they compete,so we can assume lum will make the market even bigger.
    Now if they get 10% of the world market...very feasable wed be looking at around 500 to 600 signs...they have 10 pretty much locked in now and in discussions for another 40 already.

    So lets do some rough figures.

    very rough calcs, 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
    40 signs EBIT 19.7m =$2.35
    50 signs EBIT 25.2m =$2.98

    100 signs EBIT 51m=$6
    500 signs EBIT 250m=$30
    1000 signs EBIT 500m=$50

    You may think these figures are untrue and you may also think that it would be impossible for LUM to get this much of the market...I suggest you do your homework before you do.
    This could be the best stock we've seen in easily the last 10 years imo.

    Who needs superannuation when we've got LUM...I urge lummettes to keep their LUMs held tightly and dont wont worry about intraday moves,they will try to panic you into selling but stay strong to the cause for the story has is only just begining...dont forget the big picture before you sell or you may live to regret your decision.
    Best of luck to the rest of you non-lum holders heheheeh

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