AMED is flying, and we have 19 million shares - AMED owns just under 50% of MGR Singapore and it gets REALLY interesting!! I've just been DMOR and running maths projections over AMED. Looking at their investment in MGR, I had to do the sums twice to see what a phenomenal bargain this buy was - here's my notes: About MGR -----MGR is a wholesale trader of ferrous metals and ore. It sources iron ore principally from Africa, India and the Middle East and sells on to buyers in East Asia including China. In the 18 month period to 28 February 2013, MGR had unaudited revenues of approximately US$29.5 million and a net profit of approximately US$1.0 million. Terms of the Investment Creon [now Amedeo] acquired 49% of MGR's equity share capital, for US$49,900 from Fortus PTE Ltd ("Fortus"). The balance of MGR's share capital will be held by Fortus. Creon has agreed to provide a three year unsecured 15% coupon convertible loan to MGR of up to US$1.95 million to assist MGR to increase its trading operations ("Convertible Loan"). The Convertible Loan can be converted at any time during the three year period at Creon's option into new shares in MGR at US$1 per new share. Since the investment, Amedeo has provided various services to MGR including assisting it source and secure contracts. With Amedeo's help, MGR is performing well and is building a reputation for sourcing and amalgamating ferrous metals from a variety of sources. Indeed, MGR made its first dividend payment to Amedeo of US$210,000 (£138,000) at the end of July, just before the end of the period under review. Further payments are expected from MGR in the second half. Furthermore, Amedeo expects to charge MGR for the services that it has been, and is, providing to MGR. MGR, again with Amedeo, is in discussions to source long term iron ore supplies with attendant vertical supply chain and economic benefits. MGR is also studying opportunities in the chromium, nickel and copper markets. CRAZY!!! ---------- Do the maths!! ------------- We paid £33000 for 49% of MGR in April 2013. It had an annual turnover [without our input and contacts] of £13m and annual profits of £430k. We have been on board for 9 months and have just received an interim [first half] dividend of £138k!!! And we have a convertible loan note that allows us to take control [50% +] of MGR at 66p a share! WHOOHOO or what!! UPSIDE IS HUGE! And thats just MGR - Add in YZJOE and.......................................
Fully loaded here and am happy to sit and wait for the newsflow. As far as I can see all the sellers are being finally cleared and we can move on into a blue horizon in the coming days/weeks. All it will take is the first RNS to start the engines north again and I expect that anytime now from VirtualStock. This has been a great week or two to accumulate a nice shareholding at under 0.2p allowing for a nice 50% upside in the near-term and a lot more during 2014. DYOR, re-read my posts and enjoy. Ive just posted a note on our Amedeo holding on the AMED website - well worth a read as its heading up fast and LEG hold 19 million shares [one more reason to buy in here] - GLA - Adastra
Thankfully NO derampers on here it's just MM manipulation that knocks the shareprice. The facts with LEG speak for themselves. Its not just a one-trick-pony in that we have an envelope of 7 early stage investments of which 3 are unquoted and held at book value only. [Thats a bit like buying your house in 1960 and not having it revalued!]. The 3 unquoted stocks are VirtualStock [flying] Bosques Energ. [huge upside potential compared to US equivalents] and Manas [enormous JORC quantities of thermal coal] - any one of which could be worth more than the whole shareprice here. We also have big chunks of quoted shares AMED [jumped up 30% since Friday]; Sula [which we bought at 5p average and news imminent] MedGold - listed on Canadian SE and which we invested £50k in 2011- valued now at £90k and finally RGM [Regency Mining] - non-core where we hold £20k at todays price. Loads of potential and gives 7 times more RNS to come. Should be way higher than the lowly £2.4 million at present IMHO. Keep buying folks. Vital to add that the directors are so confident that they are paid only in out-of-the-money options . That is, they get shares at the equivalent buy prices of 0.2p and 0.35p which are currently worth nothing. What better incentive to get these investments moving north. The directors are pro-active in the investments and help and support each one. Zafar joined the board of Amedeo [before name change from Creon] in September and joins an admirable crew there - check that one out too. Overall synopsis: http://www.leginvest.com/
AMED is flying and..................LEG has 19 million shares in Amedeo!! Up 30% since Friday morning. Just one of the 7 investments that can fly - check it out. I seem to be the only potser on here but at least I'm letting you all know why I'm buying stock as it comes on the market - Adastra. At least I'm giving sound, valid reasons for investing. All solid companies trading well.
MM games over - now let's start to rise to where this baby should really be. Do the reading, do the research and take a position. Legendary is valued at a miserable £2.38 million - peanuts. Go and do a sum-of-the-parts of all seven investments bearing in mind that the 3 unquoted stocks are 'multibag probable' rather thang 'multibag possible' stocks which are in the books - at COST price. That is the price at which we bought them in 2012 as early adopters. Work out what you suspect they would be valued at today and then see if you think its nearer £2million - or £10 million or more. And remember, these are shrewd directors - paid on results, like you or me. They have options that are equal to buying at 0.2p and 0.35p and they are confident and bullish - very confident.
7 shares in one Legendary package all capable of huge increases in value in short order? Got to be a steal at this knock-down price. Play the mms at their own game and top up each time they knock back - I am! Then I'll hold them till they multibag :)))
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