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Technology Stocks : LUMM - Lumenon Innovative Lightwave Technology Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Peter Sherman who wrote (891)	9/20/1999 4:22:00 PM
From: Peter Sherman	Read Replies (1) \| Respond to of 2484

I also still am disturbed about the various pump and dump questions --any answers

To: Peter Sherman who wrote (891)	9/20/1999 6:40:00 PM
From: RCDTD	Respond to of 2484

Hi Peter, Yes I am still going to Dorval and this is my first trip. I?m quite excited actually!!!! Regarding the private placements you mentioned. This has been discussed and of course a concern to many new to LUMM. At the surface, it appears that for such a company with such great potential the PP?s were far to under valued. In order to explain this, I will have to discuss a little bit of history. Remember that I can only give you my perspective of how things have transpired. How close to reality that is will be up to you to decide. Here is a start up with great potential. However, finding investors willing to put up large amounts of cash is not necessarily so easy to find when you are first starting out. Look at the story of Microsoft. The operating system they offered IBM was not developed by them but by some software engineer who had no interest in his endeavors. Remember, the founders of YAHOO were turned down my many venture capitalist. There are many stories of extremely successful companies initially turned down due to an unproven product. Many, many stories and LUMM will be included. There are quite a few optics companies popping up and determining the right one can be tricky. Remember, most of the PP?s were done prior to the pilot plant being able to actually demonstrate the production of photonic devices. Therefore, it was all theoretical in the eyes of potential investors. The founders new it worked due to having proved it in a lab environment and having invested many years of research. Venture Capitalist are sharks, have many conditions and want the best deal possible. LUMM only partnered with those that would not hinder their growth and potential. The problem is these start up companies need money to operate and get the ball rolling. The pilot plant had to be built and the equipment that goes with it. In this scenario, who has the upper hand? The venture capitalist of course. But LUMM was smart!!! They only sought what they needed for they knew their technology will be discovered sooner or later. LUMM knows that the money will find them because PHASIC is for real. Now if they can only partner with an entity which compliments their objectives. That?s when MOLX comes in. Why not give a 5 billion company which has the packaging, distribution and marketing established a stake in the company? It?s good for both partners. A win, win situation. At this point, the affiliation with MOLX gave LUMM credibility. Money was still needed for operating expenses once the pilot plant was completed. I?m not happy with the PP announced on 8/20 due to the additional warrants given but I can?t complain at this point. Still, I think they could have negotiated a better deal. Now, we have a pilot plant up and running and testing of the process has commenced. This is my take on the last PP; I have posted the following from a posting I had on RB. ?why does LUMM give away pieces to itty-bitty entities for peanuts? - It?s better to give away itty-bitty pieces for peanuts at the early stages and acquire capital for only what you need. As time goes along, LUMM has become more credible and the bag of peanuts get bigger. Once LUMM has produced it?s chips for the market scheduled for production in October and the NASDAQ filing submitted, watch this baby fly. I hope this helps. Good luck. ********************************************************************************** Here is how I understand the need for the present PP. LUMM has validated their technology and potential for it. What?s next? The building of a big manufacturing plant 25 times the capacity of the present pilot plant. This will take LUMM far ahead of any potential competitors and expedite the generation of cash flow. The equipment necessary has to be ordered and purchased ahead of time so that it will be ready for LUMM. LUMM is planning ahead so that when the facility is ready, so will the necessary equipment. They are moving fast and furious. So why the PP? They need the money now to expedite matters. An IPO has it?s advantages and disadvantages. First of all, the IPO would take at least a couple of months until the IPO is offered. Present stock available were not from LUMM but from initial investors. To better position LUMM and increase financial revenue ASAP, planning must be done now. LUMMs main options to raise capital are PP?s and an IPO. LUMM has no problem going through the ?dog and pony show? to acquire funding. They will do whatever it takes to provide LUMM the best deal possible. If necessary, do the ?dog and pony show?. The recent PP was necessary to expedite matters. When the deal was being brokered, LUMM was in the $4 range. How did they know it was going to double in 1 weeks time!!!! It could have gone down. No one has a crystal ball. Picture this, LUMM needs money to buy some equipment. LUMM is at 4.50. They offer $4 and a check ready to cash. No one would have known LUMM stock was going to double. No one.!! The important thing is that they now have the cash and all the necessary planning can commence without the hindrance or constraints of capital. They could do the IPO which has the advantage of getting lots of publicity. But an IPO takes so long. At this point, it appears LUMM is getting discovered and the need of publicity is not as critical. The discovery process has begun. 2 publications have written about LUMM just in the past couple of weeks. LUMM always has the shareholders in mind. Remember, LUMM founders has a big chunk of the shares. They will certainly do what?s best for them. What?s best for them is also best for us shareholders. The price just happened to double in 1 weeks time. Let?s hope the trend continues. I would much rather have that than having a placement at 4 then the price go down to 3. For future capital? They are presently exploring the best alternatives. The fact is, a facility is now needed to generate the 25 times capacity. LUMM is about 5 months ahead of schedule based on the original time table I was provided a several months ago. This is awesome!!!! Now, the equipment has been ordered. The facility is next. Build or buy? All options are being considered. Remember, LUMM wants to get to mass production as soon as possible. The sooner, the better for everyone including us shareholders. The decisions made are carefully thought of to guarantee LUMM?s future. I can only conclude that will all the activity, LUMM must have some major buyers waiting in line. So for now, I will relax and keep my confidence in LUMM?s management of things.