Legendary Inv. Share Discussion Threads

[gottopickapocketortwo] 08/6/2017 19:20

All to play for here ; happy to hold a lump of cash here

[professor pettigrew] 08/6/2017 19:16

Good post sam.

Ironically we would probably be better off under a Labour government. In fact, history shows that stock markets always do better under Labour anyway, as there is an expansion of the economy.

If Corblimey were to take it - and that would be one of the biggest political upsets in our history - we know that billions would go into the NHS, so yes, VS would probably be at the fore.

Interesting times lie ahead.

[sam the man1] 08/6/2017 17:53

I believe the option to increase LEG’s stake in VS expired a while ago and is no longer available. So, if you put a value of £200M on VS, and we could even find someone to part with their shares, LEG haven’t the funds to purchase them.

There are 6,388,947 VS shares in circulation so a £200M valuation would make each one worth over £30.

The better news is that, if we could get a decent VS valuation (other than Beauforts) of around £200M, it would have LEG shares at 0.48p and with a £410M valuation it would be time to start making party plans.

All the politicians are promising to throw money at the NHS so whoever wins tonight let’s hope some of it ends in VS’s pocket and eventually ours.

🍉

[andy pipkin] 08/6/2017 16:50

Interesting prof, and lots of possibilities.

What about probabilities?

[professor pettigrew] 08/6/2017 15:52

For any newbies that may be viewing here for the first time, the 1p target price is based on a number of things:-

The ever increasing value of VS. House broker Beaufort has already put a preliminary NAV on LEG of 0.7p since the John Lewis contract.

The possibility that VS will eventually float on the stock market.

The possibility that VS will reverse into LEG.

LEG may invoke their option to take an additional stake in VS, up to 10% from the present 7%.

There are other holdings here, and we await news on them as well.

[professor pettigrew] 08/6/2017 15:20

Cheers Sam - interesting article. We'll have to start discussions re the do when we first break 0.8p.

[sam the man1] 08/6/2017 13:12

Off Topic

Prof’s mention of WPP brought back some memories for me. Many, many years ago the shares were trading at less than £1 and the name stood for Wire Plastic Products. I met and spoke with the owner quite a few times because WPP and my company manufactured similar items, in fact I even subcontracted work to him.

I think it was in the early 80’s and hush-hush that Sorrell wanted to break away from Saatchi & Saatchi and branch out on his own but he needed a listed company to achieve this quickly. I never got to know that WPP was on Sorrell’s radar and was surprised when it became public.

So, I never did buy the share, besides I had a mortgage of £1,000 month back then. I was slightly miffed when they reached £5 and ready to slash my wrist when they managed £19.
But as they say, you win some and lose some.

On Topic

I don’t believe in the 1 code but for those who do here’s a few more

1 - RNS logged/imminent
100 - MM need shares
200 - Need shares but do not take share price down to get them
300 - Need shares and take share price down to get them
400 - Trade sideways based on supply and demand
500 - Gap one way or another usually to direction of the 500 trades

I have to add, I definitely have high hopes for the 1p party 🍷
🍉

[kemorkid] 08/6/2017 12:17

Thanks Paul and of course prof for
Those posts -very informative

[paulthomas103] 08/6/2017 12:14

I wouldn't miss it for the World. When it makes that charge upwards it will happen very quickly.

[professor pettigrew] 08/6/2017 11:58

I've got you down on the "1p party list", by the way Paul!

[paulthomas103] 08/6/2017 11:45

Agreed Prof, it takes time to gain traction and for the market to truly understand the Business - it all goes back to PR again of which we're lacking.

The truth will eventually come out in annual reports from VS and Leg at which time more investors will jump on board.

The only issue existing shareholders have is timing, we're all here very early in the story and so impatience creeps in. It's all a bit of an anomaly as most investors on AIM are very short terms focused where that's not necessarily the play of an Investment stock. Especially an Investment stock which focuses on potential and not existing profit which only delays things even more.

I'm as impatient as the next person but i cant ignore the clients VS already has and i work closely with Global B2B companies that would die to have the clients that VS already have. Today the price is cheap, really cheap, tomorrow, next month, next year, whenever it is, the price will be expensive in comparison.

[professor pettigrew] 08/6/2017 11:28

Going back to your valuation post just now Paul, it's as well to remember that when VS announced the contract with John Lewis, Beaufort Securities then upgraded their valuation of VS and LEG. They put a price on here of 0.7p, we are trading at but a quarter of that.

Any further contract wins and positive news from VS (and our other holdings) will surely lead to an estimated NAV of 1p per share at the very least.

Historically though, markets have always underpriced conglomerates and investment trusts, most of whom trade at a discount to the underlying NAV.

If you believe the story, its a continual buy and hold scenario, as eventually the true value of LEG's holdings will be realised by the wider investing public.

Look back in time to see numerous examples of stocks that have languished at mere fractions of their eventual value for a long time.

ASOS
QXL
BOOHOO
WPP

to name but four that were or are listed in London.

[professor pettigrew] 08/6/2017 11:21

Good morning to you paul. An excellent post, agree 100%.

Long periods without news usually mean there is a lot going on in the background, I've always believed that here.

I've also always stuck to the line that game-changing news isn't that far off.

[paulthomas103] 08/6/2017 10:42

Good morning All, I've been away on business but tried keeping up to date with Leg. I cannot believe people sell at these levels!!! I'm sure i watched a Zaf interview where he said the Shelford Group was worth somewhere between £10-20 million P.A. Understandably with the agreement to roll out their services across potentially the rest of the NHS, thats got to be worth £100 million +. This, in addition to existing Business and John Lewis and their £1 Billion a year spend!!! has the world gone crazy?

I'm assuming it's all hands to the pump for VS to get this right as if and when they do, they have a £1 Billion + Company on their hands. This is most likely the reason for a lack of communication and new contracts.

I genuinely believe the next RNS will not be new clients in the private sector it will all be about NHS SBS and bringing forward the rollout across a very large portion of NHS if not all of them.

VS have delivered on pretty much every ambition so far so regardless of what people think about Zaf taking a big salary, maybe, just maybe, he's entitled as he found the 1 company we could only dream about finding. Lets be honest - a Business version of Amazon, what a great concept and just look at the names that have signed up to it.

[professor pettigrew] 08/6/2017 10:23

Can be QUINAN - it usually works around 50% of the time.

If it does this time, is it yet another contract for VS?

[quinan] 08/6/2017 10:21

1 trade is news on the way?????

[professor pettigrew] 08/6/2017 09:44

No, I'm not going to get excited over the "1" code, save to say it was a buy.

So, let's see what transpires over the next week or so.

[professor pettigrew] 08/6/2017 09:32

Morning sam - yes fully agree.

Shame he went awol - decent research and he was spot on most of the time. Probably got impatient and bailed out.

Takes all sorts.

Hung parliament tonight?

[sam the man1] 08/6/2017 08:48

Morning PP and all other LTH's

I never liked the attitude of RTW1 (aka CC on other BB’s) but we could do with some of his incessant ramping to spark some life into this share and get the BB’s buzzing.

Cant believe I said that, look what this bloody share has done to me!

Get out and vote folks and let’s try and get this country back on an even keel.

🍉

[professor pettigrew] 08/6/2017 08:03

Morning all. Here's to a good day and a good result at 10pm tonight.

GL to all genuine holders.

[professor pettigrew] 07/6/2017 07:33

Morning all, and good luck to all genuine holders.

Out all day today till early evening.

Have a good one all.

[professor pettigrew] 06/6/2017 07:20

Morning all. Absolutely lashing it down in Surrey, but the garden is looking superb!

No 7am RNS yet again, but hope springs eternal.

GL to all genuine holders.

[professor pettigrew] 05/6/2017 20:34

It will Andy, eventually.

It's the positive news and confirmation of it that is needed. There is a lot going on behind the scenes. Buy and hold.

[andy pipkin] 05/6/2017 20:18

does this ever rise?