I'll take your one amazing investment (VS) and raise you by another amazing investment (Bosques Energeticos).....too early to put an accurate value on Bosques as it's early days in there (no sales revenue yet) but the progress made over the last couple of years with the pongamia plants is extremely encouraging.....latest scandal with diesel testing fiddling could play right into bosques hands.....one to keep a very close eye on...!! IMHO
I have been following this stock for 2 years and I am holding my position with no view to sell in the short term. I would like to bring up a few points or questions:
1. Does Legendary not have previous losses (£10 million or so) to use against future gains? What is the reason for Mr Karim to operate such a company.. he bought this company to make it into a small investment company to benefit from these previous tax year losses personally for himself and other shareholders. 2. Furtheremore, my predictions are that VirtualStock will IPO for around the (£125m-£150m) mark towards the end of 2016. The NHS will no doubt be the biggest beneficiary. 3. They are building the team. These individuals VS are putting themselves with will not just add value but create value. Nick Jenkins (Dragons Den) has been introduced to increase the buzz and hype around the company and also because he may be able to bring more introductions and clients for VirtualStock. They already have hired a strong CEO and I could see Mr Karim playing a key role with his financial skills during the roadshow leading to an IPO (hopefully Legendary has the option to purchase another a few more % of stock... another 3% would be nice).
I see Legendary Share Price going to about 0.5 once IPO is announced. This is a x5return on your investment. However, this is a 1-2 year hold. You have to be patient. Invest your money and just leave it be. Mr Karim should be looking at other investments now while dividing his time between VS and Amed.
It's nice to reads some genuine thoughts on here aside from the mindless ramping comments. Reading a bit more on the nick Jenkins deal, it seems as though he has negotiated a safety net in his deal with VS, that guarantees the value of his stake in the future. Should VS not reach certain milestones and value target, they will have to issue mr Jenkins with more equity. This gives a bit of doubt on the 58m valuation and he wouldn't have got that certainty from buying LEG. It's also frustrating for me that they haven't stated what size investment mr mills has committed to. ... All we are told is a minority stake.
Legendary consists of 7 Investee companies with Bosques [Mexico] and VirtualStock the stars. Bosques is flourishing towards IPO and worth perhaps 20x book value of £100k; VirtualStock has current implied value of £58m so LEG's 7% holding is worth around £4m. Crazy. We could sell VS alone and raise one and a half times our current MCap...............................
Regarding VirtualStock.................The £58m valuation reflects the significant progress that VS has made since the April 2014 valuation of £25 million, and its continuing substantial potential. It places a value of just over £4 million on Legendary's stake.Nick Jenkins, Angel Investor, said:"I am delighted to be a shareholder in Virtualstock and in particular, I am extremely excited about the enormous cost saving potential this groundbreaking technology will bring to the NHS."........................... The £58m is £8m more than I forecast in my last post and shows just how transformational the leap from commercial/retail to NHS teaching hospital is. To think that Nick Jenkins has invested at this price and not looked closely at the effect of this 'pilot' NHS contract would be ridiculous. He is obviously impressed enough to accept a valuation 150% higher for VS than it was in April last year; That speaks volumes about where he thinks the technology roll-out is going. Next stop £100m and IPO for VS with Legendarys stake up to around £7.5m. Our current MCap for the whole company? £2.7m. Why oh why did Nick not buy Legendary to get 7% exposure to VS? You can bet your bottom dollar that someone will be looking! Hold tight.
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