Member Info for Soupdragon78

Superlucky, you're very good at highlighting what you don't like. So, what do you like about this firm?

ps. I'm all for constructive, researched criticism. The problem here is specific poster who only post personal criticism such as 'we are being screwed'. This is neither useful, intelligent or beneficial, other than a mechanism for them to project their own insecurities into the ether of the internet.

Understand you points Drivenout, although in response to being termed superrampy I'd suggest you look at my posts on the valuation of VS and its revenues. Fair value at the moment I see as between where we are now and 0.2p. Some are dissappointed by the sp because they think it should be way higher now, even though VS contracts have negligible base value and are reliant on supplier uptake. I'm quite sceptical about its level of valuation as the revenues they currently generate from the Tesco contract (a larger retailer than John Lewis) are not massive. Also given the pricing model they need transactions to be super high to achieve unicorn status.

Super, the points about the bot article and the spendmatters article are valid. Although I think VS use spendmatters as a channel to keep their story in the open realm. As usual I'm still amazed how you can say the following yet remain invested! "...you just look desperate to avoid admitting we are being screwed" If we are being screwed why don't you save your money and move on? Do you drive towards concrete walls shouting about how much you hate crashing?

Don't recall seeing B&Q mentioned as a client before?

I'll get my dates right. Part 2 was released today. http://spendmatters.com/uk/virtualstock-part-2-edge-nhs/

http://spendmatters.com/uk/virtualstock-bringing-dropshipping-tech-nhs-part-1-christmas-trees-bear-grylls/ Part 2 tomorrow.

So you 'saw' potential, which infers you don't anymore. As this has changed why did you decide not to sell? For me, there still is potential, VS have only just started to get into a position to monitise their product. They may succeed, they may fail. But if at any point I see my criteria not being met then I sell, no if's no buts, no emotions wails.

Own 12,500,000 at an average weighted price of 0.127. Now answer my question, if you don't like being in the dark, why do you stay invested here?

Again its a question of fundamentals. If you don't like it, why are you invested here?

VS pricing documents for the NHS are available online, it would be odd to have a contract that didn't relate to their pricing policy don't you think?

VS are a private company, they have no obligation to release that info. I'm comfortable investing in small private companies and accept the limitations. Sounds like its not for you.

Basically LEG are a one trick pony, and that pony has yet to prove it can do tricks. The LEG sp won't do much until that time regardless of whether you like Zaf or not.

"Even when we do get VS news they dont even say size of contract or duration....just nothing" That shows that you fundamentally don't understand how the VS system works, especially for someone who claims to have been invested for 4 years. Its the most basic research. There is no contract value as the client only pays a nominal sum. VS earns from the supplier side for quantity of transactions. Therefore no contract size is determined.

"Karim isn't finished with warrants yet there are a but load more at 0.25 and 0.3" Yes, those are included in my figure of 204,700,000 outstanding warrants, which represent a further dilution of circa 7%.

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.

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)

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.