Stocks benefit from recovery on Wall Street: (OTC BB:LMIT) SRXAE

[Weekly Stock Pick]

Reasons To Invest In LMIT

 - LMIT is well poised in an explosively growing $1.3 billion tooth whitening industry expected to expand at a CAGR of 35% over the next several years to annual sales of $5 billion.

 - LMIT has developed an effective wholesale distribution platform to rapidly penetrate national markets without incurring heavy marketing costs. Initial sales through distributors have been promising.

 - LMITs LumaArch bleaching system is more effective, affordable, faster, and technologically advanced than current market competition including Brite Smile, Biolase Technology, and Discus Dental.

- LMIT will begin vertical integration operations with the establishment of a retail service offering, and a full line of oral hygiene products in strategic locations such as malls, fitness centers, resorts, spas, and vacation destinations. These locations will not only increase visibility, but revenue as well; promoting at- home kits, toothpaste, mouthwash, and chewing gum.

 - LMITs partnership with leading dental supply companies, including Henry Schien and Patterson Dental, will provide rapid access to national marketing networks.

LMIT News

LMIT to launch breakthrough product in July 2002.

LMIT will be set to revolutionize the dental industry with their latest product, the Inter-oral camera.

The Inter-oral camera will give dentists the ability to show the patient on a video screen the specific problem with requires correction.

Anticipated accumulative sales for this product will reach close to $50 million over the next 3 years.

Spotlight

LumaLite, Inc President Michael Jackson and Director of New Business Opportunities Rob Heggie will be featured guests this week on the business television program, Emerging Company Report. Mr. Jackson will be present in Emerging Company Report's Hollywood studios while Mr. Heggie will appear via satellite from Toronto.

Emerging Company Report has been on the air since its premier in the fall of 1996 and is seen twice weekly, on Friday evenings at 11:00 PM Eastern, 8:00 Pacific and Sunday mornings at 11:00 AM Eastern, 8:00 Pacific in more than 35 million USA homes.

 

Outlook:	AGGRESSIVE  GROWTH
SYMBOL:	LMIT
Estimated Float:	10.2 Million
52 Week High	$6.25
52 Week Low	$.50
Current Price	$0.72

Company Profile

LMIT is a premier provider of comprehensive teeth whitening solutions sold through wholesale distribution to the multi-billion dollar dental service industry

LMIT has rapidly developed and commercialized the leading tooth whitening technology. Based around a proprietary Xeon-halogen illumination technology, in conjunction with a specially formulated hydrogen peroxide LumaWhite Bleaching Gel, the LumaArch simultaneously whitens both arches in a procedure that takes 30 - 40 minutes to brighten teeth by an average of 8 shades of improvement. At an SRP of $229, this whitening system is far more affordable than competitive systems that are far less effective. Well known industry player BriteSmile offers the only comparable solution at a price of $600, with a process that takes twice as long.

The wholesale distribution arrangement with Henry Schien and Patterson Dental should translate into rapid sales growth for the LumaArch product into dental offices nationwide. We expect LumaLite will have an installed base of approximately 3100 LumaArch systems by year end 2002, and its projected 2002 total sales revenues are anticipated to be $8.1 million.

Conclusion

The desire for attractive white teeth is an increasingly important  personal hygiene and appearance concern for the American public, especially as a large middle aged population with significant disposable income tries to hide one of the most obvious signs of aging.

Relative to a peer grouping of comparable companies engaged in the dental services and products industry, who trade at an average FY 2003 P/E of 21.4x, LumaLite is currently priced at a 100% discount in spite of its leading technology suite, innovative and effective distribution model, and rapid competitive emergence.

Therefore, by applying the peer grouping's average 2003 P/E multiple to LMIT, we can arrive at a relative valuation for LumaLite of approximately $4.00 per share.

Disclaimer:

The SI Newsletter provides information on selected companies that it believes has investment potential. The SI Newsletter is not a registered investment advisor or broker - dealer. This report is provided as an information service only, and the statements and opinions in this report should not be construed as an offer or solicitation to buy or sell any security. The SI Newsletter accepts no liability for any loss arising from an investors reliance on or use of this report. An investment in LMIT is considered to be highly speculative and should not be considered unless a person can afford a complete loss of investment. The SI Newsletter has been retained to distribute this report on LMIT and has been paid $1200 by a third party. This report involves forward looking statements, which involve risk, and uncertainties that may cause actual results to differ materially from those set forth in the forward - looking statements. For further details concerning these risks and uncertainties, see the SEC filings of LMIT including the companys most recent annual and quarterly reports.

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