Q: Hi 5i Team - A link from Yahoo Finance on news for Lumine today took me to Simply Wall Street which raised three concerns for the company: 1) Earnings have declined by about 80% per year over the past 5 years; 2) Shareholders have been substantially diluted in the past year; 3) There has been significant insider selling over the past 3 months.
For number 1) how reliable is this information especially considering Lumine has only been around for less than two years. In fact how reliable is any of this information including the website itself. Could you provide your reaction to each of these three concerns. Thanks.
For number 1) how reliable is this information especially considering Lumine has only been around for less than two years. In fact how reliable is any of this information including the website itself. Could you provide your reaction to each of these three concerns. Thanks.
5i Research Answer:
1) The company went public in March 2023 so we are not sure where this comes from. But EPS from filings were 11c (adjusted) in 2021 and estimated at 52c this year. 2) This likely reflects the conversion of preferred shares held by CSU. This was disclosed in the offering prospectus and is not news. There was 'some' insider selling in September, about 50,000 shares, but we would not really consider this significant. We do not know where SWS gets all of its info and cannot really comment on its reliability across the board, but it is off on these points.