On September 22, 2014 (Invest In Foreign Shares FB), I recommended a BUY on LEG, UK stock listed on the AIM at 0.10 pence. Since then, the stock has moved up to a high of 0.13 pence in January, 2015 before settling in the range of 0.08 - 0.09 pence currently.
I have a few compelling reasons to buy LEG, the main one being the director's remuneration. The directors were paid in shares which can be exercised at 0.20 pence. So for the directors to cash out, LEG has to earn more than 0.20 pence, which means any investment you made today could potentially earn you more than 100% profit.
LEG has investments into 3 major companies: Virtual Stock, Bosques Energeticos and Amedeo Resources.
Virtual Stock is the jewel in the crown. LEG has a 5.6% interest in Virtual Stock, an up and coming inventory and retailing solutions provider in the UK. Today (9 July, 2015), Virtual Stock announced that it has signed a contract to provide Virtualstock Edge solutions to the Maplin Electronics, a specialist consumer electronics retailer in the UK.
Some of Virtual Stock's customers include Office Depot and Tesco.
There is talk that the NHS is in discussions with Virtual Stock to provide inventory solutions to the former. Should this materialise into a contract it could mean millions of revenue.
The true value of Virtual stock will be realised through an eventual IPO and which result in LEG getting a tremendous boost to its revenue.
Bosques Energeticos is a bio fuel company whereas Amedeo resources is a player in the offshore engineering and ferrous metal trading.
As in any stocks in the UK AIM, you need to take a long term view. In LEG case about 2-3 years which could see the eventual listing of Virtual Stock. I would expect by then a potential return of a minimum of 3x the investment.
My disclosure: I am long LEG
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