After the recent fund raise of £500k the MC is about £4m at 0.11p. At the last valuation of VS of £66m that was worth almost £5m to LEG then there is the investment in IBS we are told is worth about £1 - other investments and the cash raised of £500m so possibly a total in all of about £7. If VS were to come to market at say £200m then the VS stake of just over 7pc would be worth over £14m. Seems to me as if the LEG asset value is substantially higher than the MC and the share price should be nearer 0.40p than 0.10p.
With VS continuing to grow the current MC of LEG may be a little behind its asset value.
Anyone have a feel about the value of VS because as and when it floats it could have a major and positive impact on LEG at 0.11p
The problem here is that VS is the only worthwhile investment that LEG has ever had so I would hate to think where the money would go if they realize the investment. Glad I didn't invest at the last 0.30p fund raise.
Not much until Virtual put that money to work and announce some more deals.
Would think that the new investors know what is in prospect so suppose we have to sit back and wait for more announcements, hopefully in the not too distant future. Just need to put the shares back in the drawer I suppose and show some patience.
Yes it's all about VS and when the investment is realised there will be quite a substantial tax liability. Also the directors will be paid on results - that is the profit on disposal. At the moment the m/c is higher than the value of the VS investment. Nothing to go for at the moment I feel.
No there isn't and we need to see Virtual make use of the money they raised and announce some new contracts. The problem is realising the value in them as there is nothing else of note.
Will just have to hang in a bit longer I suppose but all a bit frustrating.
Agree about the valuation but at least it did confirm the worth and the investment is from someone who should know about these things.
They now have a fair amount of dosh to invest so hopefully this can be put to good use and we will start seeing the benefits in the not too distant future.
Must admit that Legendary gives you quite a bumpy ride and the SP is a bit sad at the moment.
Yes a bit strange the Bosques investment and hardly gets a mention in the annual and interim updates.
As you rightly say very much a one trick pony and the valuation put on VS at the recent fund raise was less than I had hoped it might be.
I suppose it depends on if you are a glass half empty or half full type.
In this case I will go for the half full as at least the company has more cash to speed up development and it shows that people are still prepared to invest.
The test will be how soon we will hear of any new contracts.
The problem is Legendary is pretty much a one trick pony now and it is amusing to remember all the RNS's we used to get about Bosques which has seems to have died a death. This brings a problem in realising value in Virtual Stock if they are not going to be bought out or brought to the stock market.
At least the deal shows something is still happening.
Another good RNS but until we get an updated value on Virtual looks like the SP will not get too carried away.
Although it must be a brilliant system I suppose it is what they get paid for the use of that counts. Unfortunately the last results that were submitted for mar16 weren't very illuminating.
Agree it is a one trick pony. What is VS worth to LEG? The DIrectors are paid on performance so we are told so we can expect high payments on a realisation of the investment which is the only way to crystalise any value. Also there will be a substantial tax liability on any realisation. What value LEG? 18p at most IMO
Yeah I must admit I noticed that about Bosques considering all the notices that used to put out about it. Suppose the fuel price drop hasn't helped.
To be honest this is now pretty much a one trick pony but when that pony is called Frankel that's not so bad. Virtual Stock looks a real winner but I suppose at the end of the day it is the value, or future value, of all their contracts that counts.
I'm told we should take a look at VELA Tech which has a 4% interest in PORTR an investment that could have a similar result as VS could for us at LEG. As far as LEG is concerned the interims are due next month so an update could be useful to keep the pot boiling.
Yeah I was getting a but worried about the lack of new contracts but this certainly makes up for that and there is a huge market to be tapped in the NHS. As you say will be interesting to see their accounts to get some idea of their worth and maybe a public offering down the road.
Think this is one for the bottom drawer and wait on developments.
I agree and with the half year coming in December and VS filing accounts in December there should be a good trading update and confirmation of the worth of VS. Perhaps the growth of VS and the need for further capital could trigger an offer for the company.
Notwithstanding the large sales the share price has held up and of course we must remember that the investment in VS remains very attractive and realisation should ensure the brokers valuation of 0.50p. If one can be patient for a few months the rewards could be great IMO.
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