Lumine Group Inc V.LMN

Alternate Symbol(s): LMGIF

Technology Software - Application

Lumine Group Inc. is a Canada-based company. The Company is engaged in acquiring and growing vertical market software businesses in the communications and media industry. It is engaged principally in the development, installation, and customization of software and in the provision of related professional services and support for customers globally. It also provides access to capital for organic and merger & acquisition (M&A)-related investments and assist with the professional development and training of management teams. The Company's portfolio of companies consists of Axyom.Core, Motive, RazorFlow, SpatialNetworX, Openwave, Titan.ium platform, WideOrbit, Wiztivi, TOMIA, Incognito Software Systems, MDS Global, Ubersmith, WDS mobile, Lifecycle Software, Velovix, NetEngage, Tarantula, Flash Networks, TransMedia Dynamics, VAS-X, Collab, Neural Technologies, Telepin, Netadmin Systems, Sicap, Advantage 360, Kansys, Aleyant, Avance Metering, and Symbrio.

TSXV:LMN - Post by User

Lumine Group Inc

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Post by retiredcfon Oct 12, 2023 10:55am

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Post# 35680499

Assessment

Took advantage of the recent decline in SP and opened a position this morning. The second comment was from 29 Sep when the SP was $20.12. GLTA

Vertical Market Software is software designed to meet the unique needs of a particular industry. This software is specialized for the particular processes, regulations, and workflows of an industry, and helps to streamline the required workflows.

In the context of Lumine, its media clients include Titanium (telecommunications and government organizations), WideOrbit (digital ad sales), Wiztivi (cloud gaming), Tomia (data and financial clearing), and many others. We would consider the outlook to be positive given the general trajectory of the communication sector and increasing competition regarding digitization and rising need for cloud solutions, etc. LMN has demonstrated strong sales growth and the company continues to see opportunities for future acquisitions and inorganic growth. (5iResearch)

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Can you please comment on the current valuation of LMN and TOI and which do you think offers a more compelling opportunity?

LMN’s Forward EV/EBITDA multiple is 33x (based on total shares outstanding of 253,104,971 and 2023 EBITDA converted from $110M USD to around $150M CDN). TOI’s Forward EV/EBITDA multiple is 35.5x (based on total shares outstanding of 129,841,819 and 2023 EBITDA converted from EUR to $320M CDN)

TOI's valuation has gone down meaningfully recently. However, TOI is still trading at a premium compared to LMN. We think both are still quite buyable for long term growth investors. If just one, we would favour LMN today.