Legendary Inv. Share Discussion Threads

[professor pettigrew] 27/6/2017 16:33

Well, slowly does it. Another day with a small tick-up, a better performance than of late, and some interesting large buys going through.

Interest here is definitely on the increase again, maybe this time we really are on the cusp of some announcements.

Have a good evening y'all.

[mickluv1] 27/6/2017 16:08

Thanks Phil

[yorgi] 27/6/2017 15:43

Paulthomas, I have watched the video before but reminded myself by having another look at it. I agree well worth watching for anyone new and possibly reminder for the rest.

Thanks for posting the link :-)

[philmiboots] 27/6/2017 15:12

L2 for someone who asked is currently 3 @ 0.15p v 1 @ 0.16p ( with next on 0.18 and 3 on 0.19)

[professor pettigrew] 27/6/2017 14:54

I forgot about that Paul - many thanks.

Yes, the current (unknown) valuation for VS could be a massive surprise to the upside.

Why would Zaf hold 166,000 shares on his own account for starters?

[professor pettigrew] 27/6/2017 14:53

Here's a thought:- It would only take 5 Bruce Rowan's, and 10 of me for the remaining shares in free float to be gone.

Then how would the MM's price LEG?

[paulthomas103] 27/6/2017 14:46

Carefree i recommend watching this Youtube video from about 4 mins.

Zaf states the Shelford group is worth between £10-20 million alone to VS. Remember this is every year and in addition to both retail and talks ongoing regarding the remainder of the NHS (90% spend)

This alone puts a huge valuation on VS and in turn Leg, its just timing for the money to come in.

[professor pettigrew] 27/6/2017 14:42

Dr. J - it would be nice to get to the lofty Bruce Rowan heights of 175m+

[dr jekyll] 27/6/2017 14:31

Some good posts sid. I have taken you off filter I am sure you will be delighted to know :) I can see what you are driving at here and I have some concerns myself having been burnt in the past by cos. not meeting expectations. Having said that I do think that this is a very sound investment at this share price I am just not buying so many as the prof.

[professor pettigrew] 27/6/2017 14:25

Yup, take all your points sid.

In any case, we aren't far off some info from VS, so should get a much better idea about current valuation.

Think about Nick Jenkins though. A very canny businessman, he wouldn't take a stake in a company with a false valuation.

Anyhow, good luck in what you decide. Just don't miss the boat that's all.

You may fall over "The Edge".

[carefreesid] 27/6/2017 14:18

I understand that is the idea. My point is that when a newbie start up tech company wants to get in with the big boys mentioned earlier, they often go in as a loss leader, with the idea that NHS, Sainsburys etc like it so much, they adopt it.

So I believe VS are at that entry level, which is quite an achievement. To monetise it is where the real test is, though.

[professor pettigrew] 27/6/2017 14:15

Revenue is earned by VS on a "pay per click basis", so every order garners income for Virtualstock.

They are in talks with other retailers as we speak.

[carefreesid] 27/6/2017 14:10

I am aware of all that, PP, and find the potential here attractive. I have a doctor friend who I am seeing this weekend and I shall bend his ear, though I assume he himself doesnt actually purchase stuff for the NHS.

I just want to be certain that VS is that good, and that barriers to entry from competing, larger entities, isnt easy. VS has been around a while, in one form or another, and I am yet to be convinced it has huge value for shareholders.

Getting NHS, Sainburys, John Lewis signed up is one thing, having them pay a lot of money for the service something else.

[professor pettigrew] 27/6/2017 13:59

If/when VS become a "unicorn" company, LEG would be trading around 2.25p.

[professor pettigrew] 27/6/2017 13:57

Sid - a few other things for you to peruse, which may help you make up your mind.

1. Nick Jenkins, founder of Moonpig, acquired a stake in VS with a value for VS quoted at £58m. If that were the value now our stake would be worth the current share price of around 0.16p, but since that stake was bought, Virtualstock have acquired more contracts, John Lewis in particular.

2. Bruce Rowan, a well known investor worldwide in smaller companies, has an 8% stake in LEG.

3. Zaf, our esteemed big cheese, actually owns 166,000 shares in VS on his own account. I very much doubt he would risk any of his own money in VS if he weren't sure of the massive potential.

Therefore he is looking after the interests of LEG too, continuting to proactively nurture VS and monitor the other investments in the portfolio too.

Zaf has commented more than once that in his opinion, VS will eventually become a "unicorn" company, worth in excess of £1bn. Therefore our 7% would be worth circa £70m.

Our current mcap is under £5m.

[mickluv1] 27/6/2017 13:56

An insight to the level 2 info would be good if anyone has one?

[professor pettigrew] 27/6/2017 13:30

Well, Sid that's your prerogative whether you choose to invest or not.

I'm not entering into a long diatribe here about the merits of "The Edge", save to say that you have the concept totally wrong.

If it were just a simple price comparison site, why is it that VS have a list of blue-chip clients for it as long as your arm, and set to grow even further?

Why is it that some have been quoted as saving "millions of pounds", and why is it that our most prestige retailer John Lewis has now signed up?

I'd respectfully suggest you send an e-mail to Virtualstock and enquire much deeper as to how it all works, and what they offer to individual companies.

As for LEG shares underperforming, couldn't agree more. One of the things about being a conglomerate or investment trust is that rarely do the sum of the parts add up, and markets always discount the assets.

The trouble is we are bereft of news at the moment, and the market is discounting the assets here way too much.

Even if you halve the estimated share price of Beaufort's research note (yes, I know they are the house broker so don't need reminding) and that's being generous, we should be trading now between 0.35p and 0.4p.

Also, a look at the chart shows how often LEG have bounced off the current levels.

When you allude to the fact that not enough people are aware of VS and/or LEG again I would agree, but I put a lot of that down to dreadful PR by LEG and Zaf.

In fairness to him though, he has stuck by his word not to issue RNS's for no good reason.

Now think about the last two days trading. We've had a few decent chunky buys here, so some think they are seriously undervalued, or it could be someone building a nice stake at these levels.

Whatever, I am very convinced the outlook is very positive for VS and therefore LEG.

And that's discounting our other investments too.

[yorgi] 27/6/2017 13:23

Unless there are some sellers sitting in the wings then it looks like .16p is about to go !

[professor pettigrew] 27/6/2017 13:15

Precisely yorgi.

To the victor, the spoils.

[yorgi] 27/6/2017 13:07

Clearly news is required and I would have thought well overdue. I'm quite sure there will be a lot more going on within VS than we are aware of. Considering the list of blue chip clients they have and with the signing up of John Lewis I am surprised it has not been more recognised by the market.

Patience as ever required :-)

[professor pettigrew] 27/6/2017 13:05

And also, if VS weren't the "Real McCoy" why are the NHS taking up "The Edge".

You are aware it is going to be rolled out across the whole NHS eventually?

We are talking of a fast growing company and LEG have 7% of it.

Read also the Beaufort research note. They put a price on LEG currently of 0.7p so 0.16p is just plain ludicrous given the prospects going forward.

[professor pettigrew] 27/6/2017 13:03

Well Sid - you can easily do your own research.

A good look at the VS website would show you just what they have achieved so far.

Don't forget the are a private company so newsflow isn't at the same frequency as with public ones.

I believe there is a lot going on behind the scenes, and that very positive news is in the pipeline.

In any case, what was with the Ascot win? Thought you were ready to invest here, or was it waffle?

[carefreesid] 27/6/2017 12:48

It seems to be taken as read on here, that VS is the real Mccoy.

I dont know why people assume that. I read the articles that were posted on here a few days ago, and have seen the contracts they've signed. It reminds me of a company I knew called R2S. They signed contracts with all the oil majors, but only one each time, except with BP. R2S just didnt have the muscle to succeed.

My point is twofold.

If VS was that good, enough would know about it and the share price here would already be well above 0.5p.

Secondly, you have to question the investment capabilities of the management here, as this company has been around for 17 years, and the share price has basically flat lined for the last 12 of them.

I will happily take a punt here under 2 circumstances. One, if I knew more about VS. I would be more comfortable paying 0.4p for LEG if I was convinced about VS; and two, without more knowledge about VS, if the share price here was about 35% lower.

[mickluv1] 27/6/2017 12:35

Hi PP I shall continue to accumulate at the current rates only 15,000,000 to go to join the party, the fundamentals are there for VS we just need a better news flow from Zaff! GL