from 20 minutes reasing the LMI S-1, here’s what I see…
-There’s a $65m loss that won’t be treated as a NOL due to IRS regs.
-Consolidated revs of $8m (most of that through their acquired companies) in 2005 with a loss of $19m.
-Small # customers, disproportionate share of revs tied to a handful. Contracts can be nullified with 60 days’ notice by either party.
– 1/3 to 1/2 of the proceeds will be used to retire debt. This gives LMI enough cash for 12 months of operations
– One director has a $18k/month (no typo) car service expense.
– CEO’s base is $270k
People, this isn’t 1998! Massive SG&A expenditures, unreasonable expenses, no earnings with high exec salaries don’t send a good message…What am I missing? Wouldn’t buy this with a 10’ poll!
from 20 minutes reasing the LMI S-1, here’s what I see…
-There’s a $65m loss that won’t be treated as a NOL due to IRS regs.
-Consolidated revs of $8m (most of that through their acquired companies) in 2005 with a loss of $19m.
-Small # customers, disproportionate share of revs tied to a handful. Contracts can be nullified with 60 days’ notice by either party.
– 1/3 to 1/2 of the proceeds will be used to retire debt. This gives LMI enough cash for 12 months of operations
– One director has a $18k/month (no typo) car service expense.
– CEO’s base is $270k
People, this isn’t 1998! Massive SG&A expenditures, unreasonable expenses, no earnings with high exec salaries don’t send a good message…What am I missing? Wouldn’t buy this with a 10’ poll!