Thursday, 13 November 2008

LMS Sees a Mad Trading Day

LMS Medical Systems (LMZ - TSX)
Shares outstanding: 25.8m
Fully Diluted: 30.7 million

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Over 1.5 million LMS shares traded hands today, which represents approximately 6% of the company’s issued shares. What’s even more incredible is that approximately $30,000 was spent to acquire all of those shares.

What does all this mean?

- Clearly today’s sellers do not believe a financing is going to happen and they think the company possibly faces insolvency and a delisting from the TSX.

- If the company closes a financing, investors buying at this level could potentially be making a fantastic purchase.

Regardless, everyone watching this story should consider this - recurring revenues are increasing and the company has recently slashed its expenses. However will it be enough?
More to come…