Legendary Inv. Share Discussion Threads

[ride the wave] 12/3/2016 22:45

BarnetPeter , well you won't be buying any Legendary shares then . The last higher low was 0.13p so you better hurry up and buy mate (lol)

[ride the wave] 12/3/2016 22:43

Soupdragon , we have had a loan by the same company before and we didn't pay them with shares .

History repeats itself and I think you are definitely wrong !!!

[soupdragon55] 12/3/2016 22:42

RTW, you're missing the point.

An option is an option to buy. So Zaf will have to put his own money in to pay the exercise price. Not company money.

Therefore he would be out of pocket to the value of the loan.

In effect you are saying that not only does he not get paid, but he has to pay to run the company.

Why would he do that when he can place new share in the market at no cost to himself or the company? He would still have all his options and the company loan would be covered.

I've never seen a company CEO exercise options to cover a company loan.

[barnetpeter] 12/3/2016 22:41

I got out at .19 this week. I like the news but the spike was just too tempting.

Just too many discount placings at the moment....huge discounts and this might be next.

Back to .12 and I am back in.

[ride the wave] 12/3/2016 22:36

I think the share price will be well around 0.2p this Friday and much more by 4 - 6 weeks mate . The money has to be spent by the company so what difference does it make if he spends it on an investment , company expenses or for a company loan ????

It makes no difference because the money is not his anymore and has to be spent on something !!!!

What do you think he will spend it on then ???

[soupdragon55] 12/3/2016 22:31

RTW, Zaf has 316,000 options at 0.2p exercise price.

That means that Zaf has the option to buy up to 316,000 share in LEG at any time (he could do so now but since the share price is lower he'd be overpaying) for the price of 0.2p. This will cost him £632,000. So he will only exercise them when he wishes to sell and he will only sell when the share price is higher than 0.2p.

So are you saying that he should sacrifice his own profit to pay a company loan? What if the share price is still below 0.2p when the loan is due?

Have you any examples of a CEO exercising options to cover a company debt? I've never seen it before?

I stand by my opinion that the company will issue shares to cover the loan unless it is re-negotiated. Its simply not in Zafs interest to give up his options to cover company debt (this would also involve issuing shares anyway as the options are exercised)

[ride the wave] 12/3/2016 22:10

Soupdragon ,

Just a quick question :-

As I understand it , the option money will go to Legendary Investments . Therefore if the money has to be spent by Legendary then why wouldn't a small part of it ,be used to pay off a company loan ? .

[ride the wave] 12/3/2016 21:48

PP ,

I think that we will be getting a steady influx of rns's within the next 6 weeks . It would mean that our ceo gets his options and that the placing gets done at a high price (even including the discount) .

Very exciting times !!!!

[professor pettigrew] 12/3/2016 21:19

RTW - yes, from what I understand they only get remuneration from 0.2p upwards when they can cash in some options.

I think Zaf and co are not looking at salaries per se, but getting the share price up to such a level that (1) their options are worth a huge amount, thanks to the gearing effect, and (2) because the share price will be multiples of 0.2p their shares naturally will be worth much more.

We could see exponential rises in the share price going forwards quite easily, as long as we get the expected positive newsflow.

[ride the wave] 12/3/2016 20:27

When I first invested I thought he didn't get paid but when I posted that on LSE I'm sure someone posted something that said he gets paid a small amount of money . It's even better for us if he only gets paid when the share price goes up considerably.

There are 413m options (bod) at 0.2p = 826,000 pounds worth .

That is a massive vote of confidence by bod and they must think (like we do) that the price will reach a much higher value (1p - 2p by next summer imo) .

Thanks for that !!!

[soupdragon55] 12/3/2016 20:08

RTW, Zaf doesn't get paid from LEG, he said in the interview. Also below is from results.

Other than the gross directors' fees of GBP2,400 (2014: GBP2,400) accrued in the year there were no staff costs paid during the year (2014: GBPnil). The Company did not incur any social security costs in relation to the fees. With respect to directors' share based payments, see note 14. The directors' fee remained unpaid as at the year end date.

I would not expect a director to pay a company loan, especially if they don't draw salary.

The loan will be covered by a placement or renegotiation of terms.

[ride the wave] 12/3/2016 20:04

Soupdragon55 ,

if that's the case - he will pay for the loan with the options money and there will be no need for a placing by May . Also he hasn't got long to get the share price up to 0.2p + . THAT IS GREAT NEWS !!!!

PP - Zaf get paid around 100k per year

[professor pettigrew] 12/3/2016 20:00

Not so sure of that RTW. From what I gather Zaf and co aren't taking any salary, but the options are there for them once the share price is 0.2p and above, so it's in their interests to get the share price much higher.

Of course, we know it should be much higher now, purely on NAV alone. Sadly we had mug punters and short-termers cashing out on Thurs/Fri which has pushed the share price back to bargain levels.

[soupdragon55] 12/3/2016 19:59

RTW, you have to pay for options, they are allocated at a set and agreed price, in Zaf's terms around the 0.2p area.

I have options in two private companies I sit on the board of. The options are effectively in lieu of a percentage of my remuneration, they are also based on performance targets and only vested if these are hit..

[ride the wave] 12/3/2016 19:58

I was forward thinking because if he had to pay for them , it would have covered the loan !!!

I'm sure he won't be selling any of them anytime soon because of the huge potential that VS / Bosques has . He only gets a small salary now and this is how he will get paid properly in the longer term (when VS floats etc) . I suppose it means he has an even bigger incentive to get the share price much higher (because he is holding a much larger % of the company) .

We know that Nick Jenkins holds a low single % of VS at a valuation of 58m :-

2% = 1.16m invested or 3% = 1.74m invested .

He is one smart man and he wouldn't have put in all that money if he wasn't sure of huge returns .

Zaf will be working extremely hard to get a closing price of 0.2p that's for sure and we can currently buy them at 0.15p (what a bargain -25% discount) .

[ride the wave] 12/3/2016 19:31

Ok thanks for that , he does deserve them for nothing but when I checked the definition it said they they had the right to buy - meaning that the director has to pay for the shares !

I've asked a friend and he has googled it (like I did) and he says the director has to pay for them

[professor pettigrew] 12/3/2016 19:24

That's not a lot by the way. I believe RTW is sitting on close to 50m.

[professor pettigrew] 12/3/2016 19:23

RTW - I would imagine the options are part of Zaf and Co's salary package. I think he did say on the podcast that LEG is so different from every other investment trust, as remuneration doesn't kick in until the share price is above 0.2p.

piefacefrank, altogether now 3,250,000. Looking to up that quite a bit in the coming weeks. We are due some information on Bosques very soon. That could be a spur to the share price also.

[ride the wave] 12/3/2016 19:18

Definition of share option: a right to buy or sell shares at an agreed price at a time in the future.

Does this mean the Zaf has to pay for his option shares ? Or does he receive them for nothing ??

Tia

[piefacefrank] 12/3/2016 18:36

Cheers Professor. How many leg shares are you holding mate?????

[ride the wave] 12/3/2016 18:31

NM = no message

[professor pettigrew] 12/3/2016 18:22

piefacefrank.

NM = normal market

On the header above where the info is, you will see NMS. This means "normal market size" and is an indication of what the MM's will buy/sell to/from you without distorting the price viz a viz that particular trade.

I notice no NMS is showing there at the moment, but for example if the NMS is 500,000 and there are many buy trades of that and above the MM's would then move up the bid/ask to reflect demand.

PP

[piefacefrank] 12/3/2016 13:09

RTW

What does NM mean?

[ride the wave] 12/3/2016 13:05

0.21p /0.27p/0.38p

NM