Legendary Inv. Share Discussion Threads

[professor pettigrew] 18/7/2017 08:14

Many thanks cpap man. I've taken the liberty of pasting it on the LSE thread.

Thanks once again.

[cpap man] 18/7/2017 08:08

Legendary Investments (LEG.L, 0.14p) – Speculative Buy

The Board yesterday confirmed that one of its portfolio of companies, VirtualStock Holdings Limited (‘VS’), has completes strategic funding round with Notion Capital, a trading name of The Fund Incubator Limited. VS, has attracted an investment of £4.5m from this leading European B2B SaaS Venture Capital firm, in order to support its next phase of growth. The financing round values VS at £66m. VS's goal is to transform global B2B supply chains and marketplaces through its ability to seamlessly and rapidly connect systems together. VS's core platform (‘The Edge’) is already used by leading retailers including Tesco, John Lewis, Sainsbury's, Argos and Dixons Carphone to support their digital and omni-channel strategies. The Edge brings increased transparency and simplicity to a company's supply chain meaning customers can take advantage of the ever-increasing opportunities that an omni-channel environment presents. As well as the country's leading retailers, VS also counts the leading NHS Trusts amongst its clients; within this, it now operates in partnership with NHS Shared Business Services to incorporate The Edge into its systems is intended to help realise up to £1bn of annual savings through transforming the end-to-end procurement process.

Our View: Beaufort has written extensively about VirtualStock and the global opportunity its unique supply chain software brings. VS delivers an agile supply chain technology platform that allows its clients to quickly adapt to the challenges of digitisation without turning to traditional systems integration, thereby reducing cost and risk while accelerating operational benefits. VirtualStock has already demonstrated this in two very significant sectors from where it has already accumulated a highly impressive portfolio of ‘blue chip’ clients. Beaufort’s own valuation of VS, which presently stands at £240m, is much higher than that implied through Notion Capital’s strategic investment. But while that suggests Notion got itself an absolute bargain, its funding injection will ensure it has adequate financial resource to sustain its timely growth acceleration through enhancement of its range of client solutions, while expanding reach into new markets. Termed “the best possible partner for us” by VS’s CEO, Andrew Mills, this new relationship also offers access to the ‘Notion Platform’ which has been designed to support its portfolio businesses through a range of value added services. Legendary Investments’ holding in Virtualstock has been reduced from 7.1% to 6.8% as a result of this funding injection; simply valuing this participation on the basis of Notion’s own funding injection provides a 15% or so premium to LEG’s current market capitalisation. But in expectation of its participation in VS becoming more realistically valued within LEG’s portfolio, Beaufort retains its Speculative Buy recommendation on the shares along with its 0.7p price target.

Beaufort Securities acts as corporate broker to Legendary Investments plc

[professor pettigrew] 18/7/2017 07:50

Good morning all.

After a very interesting day yesterday, let's see, especially after the Telegraph article, if interest is maintained.

We now know the score. The value of LEG is now firmly underpinned by VS and the prospects for VS are pure dynamite going forward. If one or two of our other assets start to perform this will immediately be translated to further share price rises here.

The outlook is extremely exciting for LEG to say the least.

GL to all genuine holders.

[professor pettigrew] 17/7/2017 22:44

Superb find nocky. Eventually when VS are mentioned in the press, LEG will be too, because it is the only way in to buying a stake in VS.

Eventually there will be such a rush for LEG stock that the 1p party price will be left far behind.

Thanks for the links as well techtrend.

LEG are poised to go places.

[techtrend] 17/7/2017 21:39

"Lots still to do but the business feels poised for scale and we look forward to helping them on the next chapter of their journey."

[techtrend] 17/7/2017 21:23

A big US client would certainly fire up interest

[techtrend] 17/7/2017 21:22

Good find nocky

"CEO of Virtualstock Andrew Mills told The Telegraph: “One of our keys aims is to break into the US market in the coming months.

“The investment will also allow the company to more than double in size over the next 12 months and our focus is to grow the company using UK resources.”

[nocky44] 17/7/2017 20:44

Cheers Prof , heres a Nice article for you, hope for invite to the penny party's, may be sooner than some think :-)

[professor pettigrew] 17/7/2017 17:05

And nocky - I relish the day when these are 1p and we can ALL stick our fingers up to the ignorant, moronic trash on the other thread.

[professor pettigrew] 17/7/2017 17:02

Cheers nocky44 - have a great holiday at the end of the week, thoroughly deserved for a thoroughly decent bloke.

Catch up with you on your return, we may have a "2" handle by then!

Like to see you back on the share register again though!

PP

[professor pettigrew] 17/7/2017 16:27

Obviously a buy, but isn't 109 a very odd amount to purchase?

[professor pettigrew] 17/7/2017 13:59

As I said earlier, anybody who wants to "give" the MM's their stock for 0.13p must be a basket case.

[professor pettigrew] 17/7/2017 13:59

Someone wanted to sell 1,000,001?

[philmiboots] 17/7/2017 13:29

1,000,001 sell. What might that "signify"?!

[professor pettigrew] 17/7/2017 11:53

sid - 0.2p now, today, this minute. We know VS is worth £66m, our share of that is approx. 0.15p per share. Take into account our other holdings, and our cash and I reckon around 0.2p is on the nail.

BUT, that's discounting the rapid growth that will now start to happen in VS. So, if you buy today at 0.2p you are probably breaking even and getting future strong growth for nothing.

Also as pointed out by pet lover, the potential is enormous. He calculates that when the revenues start flowing in earnest we could ten-bag to an mcap not short of £40m.

My 0.2p is just a starting base, that's all.

But, don't forget you can still pick up bucket loads at around 0.145p right this minute.

[professor pettigrew] 17/7/2017 11:51

Yes, good thinking Mickluv1, especially if it was done with all costs and fees built in.

We've been undervalued here for a long time, as I said earlier would be good now not just to get more contract news, which isn't far off in my view, but some decent PR so that the world knows of VS and what it can achieve.

[carefreesid] 17/7/2017 11:51

So you only think its worth 0.2p now? Isnt that a bit of a reduction?

[professor pettigrew] 17/7/2017 11:49

By the way sam, I base my current 0.2p valuation on the fact that we also have cash in the bank from the warrant conversions.

Also, don't forget Zaf has a tidy 166,000 shares personally in VS, so he's going to do everything possible to make a "Unicorn" company, thereby benefitting himself but also LEG shareholders (and his holding in LEG).

We now need to wait for more contract news which I don't think will be that far away.

[mickluv1] 17/7/2017 11:37

Here's a thought! Today's investment has to have been at a discounted rate surly as most of these things come with a minimum 10% reduction so there's a possibility the value of VS is currently £73,000,000 or higher! This makes LEG significantly undervalued at these rates?

[professor pettigrew] 17/7/2017 11:36

Notice the MM's are keeping a wide spread to deter any sizeable buying.

Anybody letting them get away with their derisory bid price is a mug.

[professor pettigrew] 17/7/2017 11:35

Don't know about the "numbers" sam, but you are spot on with the 0.15p bid valuation, so anybody buying up to 0.15p is even.

That of course doesn't account for our other holdings, so maybe a true valuation of LEG currently would be around the 0.2p mark.

Wait until the contracts and further news comes in. You won't see LEG shares for dust then.

[sam the man1] 17/7/2017 11:12

Does anyone know the numbers surrounding this funding? Have VS issued more shares or have LEG (and the other shareholders) reduced their holdings?

Its not important in the grand scale of things but Im a 'numbers man' and it will drive me insane until I find out.

If VS have issued more shares Im guessing it will be around the 190,000 mark giving NC a 2.9% holding in VS.

Whatever they've done, the valuation makes LEG shares worth 0.15p (based on VS alone) and the long term view is welcome news to all the LTH's

🍉

[professor pettigrew] 17/7/2017 10:34

Many thanks pet lover for your continued and valued research.

I like the comment about LEG ten-bagging with an estimated mcap of around £38m when the (recurring) revenues start from the NHS.

If people thought these were "cheap" a month ago, then today they are being given away.

[pet lover] 17/7/2017 10:16

Market has not seen the potential of this link yet .

See my last post.