RE:RE:RE:RE:LOM Exit Value I like Aea257’s valuation and that is reasonable for sure. Yes, anything less to me would be low ball but where is that line drawn?
Let’s look at it this way and you decide. Say you bought 2000 shares in LOM medical international back in 2002 at 3.25 usd per share which was about 5 dollars Canadian. Back then there were somewhere around 6.8-7.2 million shares outstanding. Those 2000 shares cost you 10,000. Now say you invested in the stock market or a mutual fund and received overall, 10% a year return.. Now, if we used the rule of 72, that money would double every 7.2 years. Fast forward to today, our money would have doubled 3 times over just in the market. That 10k would have been 20k, then 40k then 80 as of today. If we got 100/share, well that means we would have 200,000 which would have been a very nice investment however that is still way less the Aea257’s valuation. His valuation of 300 per share would put the same 2000 at 600000. For an invention that was supposed to revolutionize the syringe industry, those are the numbers we deserve. At 100 per share, that’s low ball to me but honestly at this point, almost acceptable. These numbers of course, were assuming the shares outstanding back then.
Let’s look at it another way. Today there are somewhere between 23 million and 27 million shares outstanding, depending on who you talk to. We have current management who have given themselves hundreds of thousands or some that might have up to a million shares. Who knows for sure, they don’t offer up that information to us as shareholders. You have a board member approaching 90 years old and another who just wants to get out. Say you personally have a million shares. Would you care if you had a low ball offer of say, 10 dollars a share? 1 million shares would be 10 million. Not bad for coming in at the end and having pieces of plastic that were already close to FDA approval years prior and didn’t have to put much work into this. Would you care if you got that kind of payday when you just want out and didn’t have to put a dime into this while all along collecting a decent salary? Where does that leave the lowly 2000 share guy? 20k? That is an investment loss for sure.
So to be neat and tidy, say we were offered 1 billion which is low according to Aea257 and again I totally agree with his valuation. At our 7.2 million outstanding, that would be 139/ share. At 23 million outstanding, its down to 43/share. Of course there needed to be shares given out to keep the lights on, developing the technology to its current state, which by the way was not done from scratch as there was a proof of concept done back in the 90’s and a video of the working syringe less than a decade ago. The gifting of all these shares to themselves, was it excessive? If a lowball offer does come in, maybe these insiders should be giving up some of their shares that by no means were earned so the rest of us could do a little better on our investment.
The good news is now that the medical shareholders are now labs sharesholders, we are all one now and passing a low ball offer just got way harder.
I just would like to see a decent return for an important piece of technology that will save lives and let us who have been in it for the long haul get on with our lives while we are still alive. Getting a proper price is owed to us. We’ve been through a lot. I am not saying there is a 10 dollar offer and I sure hope there isn’t but be prepared, we’ve been disappointed with this company many times before.
Good luck shareholders.