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So far there have been 157.3m warrants exercised, this form an income of £157,300 for the company. Hence less need to carry out a placing. We know that LEG had £516,000 cash in the bank in Sept 2016 after paying off the loan. They have a typical annual cash burn of £250,000. So with the new warrant money of £157k they will probably have about £400,000 left by now. As I said, my figures are based on the shares in issue today, including those placed a warrants have been exercised. The VS valuation stands regardless of how many shares were bought. As you will know, there will have been an agreed shareprice for Jenkins to purchase at. Whether he was buying 50 or 50,000 shares.
10% by the placing. Meaning for every 10 shares you used to own you now have 9
We were diluted 20%by the 1m placing, amother load by theres warrants and Zaf has yet to properly reward himself for this years hard work. We have no income. My 29% is a guess for this years dilutio .... as are all of your figures for VS valuation (other than 58m). By the way that 58m valuation was based ob a tiby purchase of 50k worth of shares.
Why 29%? They are based on today's shares in issue. If all of the other warrants are exercised that will dilute by 7% (Currently 204,700,000 outstanding warrants)
What do they come out if they are diluted by 29%?
As I can't edit the original post, here are the figures corrected as Sam points out. Therefore at this valuation LEG's holding is worth £4.062m or 0.137p shareprice. So, the difficulty is placing a value on the contract achieved since that point in time. If we say that VS is now worth £100m then LEG's share of this would be as follows VS = £100m then LEG sp value = 0.236p VS = £125m then LEG sp value = 0.295p VS = £150m then LEG sp value = 0.354p
Basically this shows VS at a crossroads, hence LEG's bouncing shareprice. On the one hand you can say LEG is fairly or over priced given the last proper valuation of VS was £58m. On the other you can say that VS have signed a number of contract since then and revenues should be increasing accordingly. Personally I see fair value around 0.18p to 0.20p area at present until VS can evidence a revenue stream from these contracts. But at least I'm trying to find reason rather than moaning.
Now we look at the company figures. VS is a private company so its difficult to find a great amount of detail on revenues and profits. But the last accounts for VirtualStock Holdings Ltd give us a little clue. They show debtors being £1.35m for the year to March 2016. This is pre-Shelford, John Lewis, Dixons-****hone etc. but includes revenues from Tesco contract, so we get to see a glimpse of how much is coming in from one of the biggest retailers in the country. So, using the debtors column as revenue. VS had revenues of £1.35m p.a up to March 2016, interestingly Andrew Mills says he has increased VS revenues by 100% in one year, he joined in Sept 2015 so revenues should be a decent bit higher through to 2017. Anyway, £1.35m quid in revenues, lets say they have a good profit margin of 70%, we don't know the overheads so its a bit optimistic, say they acheived say £950k profit. The revenues equate to about £0.211 per share in earnings. With VS valued at £58m or £9.07 per share this gives a price to earnings of 43. Which is not bad for an established tech company. Obviously this stretches if VS is valued at £100m, the p/e would be 74 Lets imagine the revenues are circa £2m for year to March 2017. EPS would be £0.313 with a p/e of 29 (based on the £58m valuation) I don't know quite what p/e ratio would be appropriate for VS as I don't get how folk decide those things. But it shows that VS is still a low revenue company and have yet to prove they can monitise their contracts.
Good points being made.
Good point Sam, always trying to find a clarity in communicating figures. What the numbers do show is that a lot needs to happen to increase the LEG sp, and VS valuations will only happen at intervals of their own choosing. Those invested purely have to sit and wait. They don't have a choice. After all, we are only tiny shareholders in a company who own a small percentage of VS.
Just so you know Im not sleeping with my mate Zaf here's what I wrote last February. I have to add that my tongue was stuck firmly in my cheek (Not Zaf's) Next phase of the development - Sit back and wait for VS to succeed. New office - He needs somewhere to sit and wait. One off IT – Waiting can be boring so he needs a new Xbox to amuse himself. Increased expenses - He may have to wait a while longer so will need more new games for the Xbox. Increased salary – He needs take-aways while he plays on the Xbox. As I've said before if he can get LEG to 1p, he can and ride off into the sunset a hero, while I bank my profit. In the meantime, he has the Xbox to relieve his boredom so I aim to amuse myself at his expense, to help relieve mine. On a more serious note, don’t forget, Zaf personally owns 169,433 VS shares, so he wants success as much as we do. 🍉
I keep getting lost when we use 3,000,000,000 figures along with GDP and pence. But Soup shouldnt your SP values be GDP? or VS = £100m then LEG sp value = 0.236p Other than that I agree 100% with your figures and will add two more. VS = £423m then LEG sp value = 1.0p - Party time VS = £1,000m then LEG sp value = 2.362p - Zaf's claim that VS could one day become a unicorn company 🍉
What is quite clear is the dilutive effect of the warrants and that LEG is very much under the radar. Hence the small number of trades on a daily basis. It will only be with clarity on VS valuation that LEG sp will improve. Some of us are used to investing in small private companies so understand that this can take a long time. Others here clearly aren't cut out for this level of risk
VS has 6,388,947 shares in issue LEG own 447,428 shares in VS LEG has 2,964,636,893 shares in issue. Nick Jenkins bought in and valued the company at £58m This gives a VS share price of £9.078 Therefore at this valuation LEG's holding is worth £4.062m or 0.00137p shareprice. So, the difficulty is placing a value on the contract achieved since that point in time. If we say that VS is now worth £100m then LEG's share of this would be as follows VS = £100m then LEG sp value = 0.00236p VS = £125m then LEG sp value = 0.00295p VS = £150m then LEG sp value = 0.00354p
What should Zaf do now? resign
🍉 WARNING to SL79 and Ken I'm happy to discuss shares with anyone but you (and more so Ken) don’t appear to want to talk, just complain and criticise. Ive yet to read anything constructive from you. If this was an ordinary manufacturing company producing springs, or freezer shelves, etc. Zaf would have been booted out years ago for lack of return to shareholders. But it's not, it's Dragons Den with a difference. Zaf is the chief Dragon, and he is investing our money, not his own, which makes him cleverer than P Jones because Zaf can't lose. And before you start calling me a ramper, just remember there are almost 3,000,000,000 shares floating around and I doubt anything you or I say could have any impact on Zaf, the BoD or LEG’s share price. So what should Zaf do now? What would you do if you were him?
I've posted my figures on how I value LEG. Now post yours.... you fail to produce any sign of research, hence you're impossible to take seriously.
I have been in this share way very long then probably the most of here. This share is taking time . If only VS come out good then it won't be stopped. Rather then selling investment share (vs) share I don't thing it's bad to get more share down and have dilution in the share price . This is the waiting time and lot of patient is needed but yes if they sell VS share then I would be worried. Dilution now is just buying time which I think is like hedging . I don't think it's bad to pay the CEO and or any expenditure. He has done his bits and we are invested in the company like VS And many more. Gl all
How no one. else has anything to say about this actual firm or what the ceo has done? Just call me names from behind your keyboards lol . Im not the one screwing. Your investment tho. Funny how people cant seem to discuss this and allow only blind ramping.
Back to name calling again. Once more this is a disussion board is it not
Somene who has invested their hard earned in a firm with the intention of realising growth through capital appreciation.?
I’ve been dealing in shares for years so I don’t need advice or favours. Am I pee'd off the warrants keep coming and the share price keeps dropping? Of course I am, but what’s the point of keep regurgitating ‘our directors are useless’ ‘they’re only in it for themselves’ ‘they’re paid too much' Do you think the directors read this BB and if they did would they care? Of course not, no one is forced to invest and proper research would reveal the warrants before they did. I've bought all the way up from 0.11p to 0.33p and I could have sold them all in April 2016 and walked away smiling. But I was greedy, I wanted to go to the 1p party and now I'm sat on a loss. And even today I'm tempted to catch the ‘falling knife’ and invest more but whatever I do I refuse to blame anyone else if it all goes wrong. So, cheer up pal and if you don’t like what you see, sell up, take your losses and move on. For the record, my logo changes to reflect the price. <0.2p = Watermelon >0.2p = Lemon >0.3p = Pear (cos I like a nice pair) >0.4p = Strawberry (nearly got used last year) I've considered a 🗡if it drops below 0.1p and 🍷 if we ever reach 0.5p. 🍉
Thats coming
If he'd only issued another 35636107 shares :( LEG would have hit the magic number, 3,000,000,000 aka 3bn! LEGENDARY investments - lol
You should change that melon or lemon to sour grapes pal. I am doing you a massive favour by pointing out the reality of what this CEO has done and is doing to his private investors