Legendary Inv. Share Discussion Threads

[gottopickapocketortwo] 04/9/2017 18:50

Leg tweets they are busy pushing with their IBS in New Zealand - sounds painful !

[professor pettigrew] 04/9/2017 16:23

This is Beaufort's last "Breakfast Alert" on LEG from four weeks ago.

A re-read of this may just settle some holders who appear to be losing some patience here.



Company news

Legendary Investments (LON:LEG, 0.12p) – Speculative Buy

The proactive investment company that focuses on making investments in and assisting companies which exhibit the potential to generate returns of many multiples through capital appreciation, yesterday announced that it has negotiated a 12% stake in IBS. This New Zealand-based entity has been established for the purposes of providing financial services, initially in its home territory before going on to expand into Asia Pacific, South East Asia and the Middle East. IBS intends to establish a banking services platform with the ability to provide a range of financial services including investment banking, asset management, debt funding and insurance services aimed at corporate and high net worth clients. IBS has commenced the process of obtaining the necessary authorities from the New Zealand regulators to be able to conduct these services. These authorities are expected to be obtained in the next few months, although there can be no assurance that they will be obtained. In the meantime, IBS is establishing an experienced core team to spearhead the business and secure wholesale funding lines.

Our View: This cooperation is intended to give Legendary an additional source of funds for current and future projects. It will also give IBS access to new investment opportunities via Legendary's channels thereby providing further potential for value generation. Legendary's Board has been working with the principals for several months ahead of agreeing to participate in the establishment of IBS. As part of this process Legendary has negotiated a 12% founding stake in IBS for nominal value. Once authorities to operate and funding lines are obtained, IBS expects to grow its business and accrete value. Importantly, the activities of IBS are complementary to those of Legendary and should therefore provide further monetisation opportunities for both vehicles. Despite a wealth of opportunity, the availability of investment banking, asset management and debt based and insurance services to New Zealand SMEs is less well developed than in other international markets. IBS initially intends to target in this particular area, providing debt funding and taking equity stakes in New Zealand SMEs with strong management and business models with the potential for internationalisation. Target sectors include fintech, property and agriculture and fisheries. These services will be extended into other markets over time. As a 'challenger' financial services platform, initially focussing on an underserviced sector in New Zealand and with ambitions to expand further into the most dynamic regions in the world, while offering the ability to provide funding across a range of activities, IBS may find itself in the right place at the right time. This also demonstrates Legendary's willingness to pro-actively seek out and nurture asymmetric opportunity. Prudently, Beaufort will not attribute specific value to IBS until its structure is more developed and target opportunities identified but, in the meantime, yesterday's news provides another chance to highlight the fact that Legendary continues to trade at a deep discount to its perceived sum-of-parts. Simply valuing its 7.2% Virtual Stock participation on the basis of Notion's recent funding injection, provides a 15% or so premium to LEG's current market capitalisation. In expectation of Legendary's participation in VS becoming more realistically valued within LEG's wider 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

[chinese investor] 04/9/2017 15:06

No matter how you look at this...it's not looking good !

[carefreesid] 04/9/2017 14:18

Sorry all, but distinctly underwhelmed by the results, and more importantly, by the outlook.

Zafar Karim, Executive Chairman commented:

"The year has been marked by substantial progress at Virtual Stock. This investment has proved highly profitable. Moreover, there is much further to go, and a listing in the mid-term is a distinct possibility. Manas also continues to progress.

"Perhaps the most important development has been the investment in IBS, which is strategic for Legendary and which should provide more opportunities and a more powerful platform for Legendary to work with and from."

Years of trying to interpret AIM CEO speak leaves me unimpressed with that. My interpretation of that is this. Its a crock. Highly profitable? In what way?
Mid term/distinct/possibility for the listing. Is that the best he can muster?

But the key is in dissing VS, the most exciting, apparently, holding we have, at the expense of a start up operation (maybe) on a tiny island on the other side of the world.

No wonder travel expenses have surged.

Sold half to keep half come what may, as its only small. I fear George is right, and this is a vehicle for the good of the directors, not the shareholders.

ps GB...are you sure the swearing wasn't worse in the armed forces??!

[chinese investor] 04/9/2017 13:44

I really cannot see another RNS being released this year !

[chinese investor] 04/9/2017 13:42

I'm not surprised at this drop in the share price.

[professor pettigrew] 04/9/2017 10:35

Good luck anyway GB. Can't remember who it is here, maybe sam the man or carefreesid who said recently they would add to their holdings when they see more action from VS.

I do genuinely feel that we are sitting on a gold mine (well gold is strong and Medgold have plenty of it) with VS.

I prefer to use these quiet periods to top up occasionally. At least it's comforting to be buying below asset value, with lots more to come.

[gbenson1] 04/9/2017 10:29

Hi Professor, I personally feel we can't muster an increase in our VS holding, its moved on since our initial investment and LEG hasn't, really nice to see open views on this thread, long may they last!! My long term investment decision remains the same im holding but not accumulating.

[professor pettigrew] 04/9/2017 10:18

Well, I respect your view GB1, but of course fundamentally disagree with it.

I calculate our NAV to be around 0.18p at the moment, but that will change upwards when VS come out with more news.

If IBS come up with the goods it's not beyond the realms of possibility that LEG could use some of the windfall to increase our stake in VS again.

I think we have very exciting times to look forward to here. Just can't understand why there is any negativity.

[gbenson1] 04/9/2017 10:15

I've held these share since their inception with Joe Bloggs, I admired his entrepreneurial flair, sadly due to him holding his cash in a company that went bankrupt he almost lost everything. The more I witness Zafs "managerial" decisions the less confident I am in him, I believe the decision to purchase a share of VS was probably down to Thomas. The results were awful, we're spending more and oh yes the surprise - we borrowed $250,000 back after repaying it 9 months earlier. So now what have we got to show for the £1m placing. VS is just bits of paper!!

[tini5] 04/9/2017 10:13

I suppose there are still warrants to clear here which is perhaps one reason why we're not seeing anything.

I'm seriously considering just ditching out and sticking the money elsewhere. CPX is moving very nicely now.

[gbenson1] 04/9/2017 09:57

I don't disagree that VS has a bright future, we only hold 7.2% of the company, the way to BOD (2) appear to be running the co. I wouldn't be surprised if we get a negative surprise when Zaf decides it's in HIS best interests to dispose of it. VS has had plenty of good news as well documented by RTW1, but the share price can't hold on to gains, the facts/sp don't LIE!!

[mickluv1] 04/9/2017 09:52

To me it's quite clear that the mystery seller is holding the share price back here selling into any positive movements!!there is a lot to look forward to here in the mid term! I think it will be an interesting final quarter GLA......

[soupdragon55] 04/9/2017 09:48

Not sure which companies this applies to....if any!

"As a proactive investor, Legendary has invested in and nurtured a number of companies, with the successful ones generating substantial returns."

[chinese investor] 04/9/2017 09:29

As at March 2017 Legendary's stake in Amedeo was valued at £43,000.
Now worth £25,000 unless they increased their stake (warrants) !

[chinese investor] 04/9/2017 09:25

Can't see this becoming a unicorn !

[chinese investor] 04/9/2017 09:21

Thanks Soup !

Good points well made !

[soupdragon55] 04/9/2017 09:20

Good old Alcazar 1 Pte Ltd is back in play, funny how they have the same business address as Amedeo Resources joint venture YZJ Offshore, Dune Engineering who own a large share of Amedeo and MGR who are continually loaned money by Amedeo.

Whats the one constant, Zaf is CFO at Amedeo.

[anton85] 04/9/2017 09:15

Well most companies are a one trick pony, they succeed or fail based upon their business model. Legendary has a few ponies in the running, and one just happens to be a world beater which eclipses the rest. IBS may just eclipse VS and then we will have another trick. People need to remember that the investment model at legendary is to put a small amount in to get a massive return, and you only need one such investment to work. There will be many that don't work, that's obvious.

[professor pettigrew] 04/9/2017 09:12

As a prime example, Rare Earth Minerals, now Cadence Minerals was mired at an even lower price than LEG around four years ago.

It was sold down, as has been LEG, by people with a profound lack of patience, lack of foresight, and lack of convinction in the company.

As with LEG now, people were awaiting the one RNS that would change things.

When it came, within the space of around a week, the share price went from 0.07p to over 2.5p.

A 35-bagger.

Of course, it came back from those levels eventually, but my point is, and apologies for banging on about VS, we have such massive potential here, but in due course true value will out.

I defy anybody to realistically and honestly say that VS isn't going to be a huge company.

[chinese investor] 04/9/2017 09:09

Warrant Man Is Back And He's Not Getting A Great Price !

[professor pettigrew] 04/9/2017 09:05

GB - they weren't "awful". Look at the promise going forward for VS.

The valuation of £66m is a while back. If they start issuing a string of positive news, more contracts, a float, moving into overseas markets and the valuation is then cranked up to say, £250m, how "awful" would that be?

I agree that things are mainly skewed to VS, but look what a diamond has been unearthed there.

We just require time and patience and then we'll see just how undervalued LEG stock is at these levels.

[chinese investor] 04/9/2017 08:45

"The total proceeds of the warrant exercises were £237,732"

[gbenson1] 04/9/2017 08:26

Nice to see a tick up in the share price however small, I feel the results were awful, we really are a one trick pony and the market knows that.