LGDI is a "Legend" in its own time, you really need to look at this
one
Back in early September of this year, I was doing my usual stock scans
and came across a very interesting company. I did a little research
and found that I liked the company A LOT. I blogged it, said to watch
it because it was going to go up. Guess what It DID.....a lot in
fact. The price was around 60 cents when I first blogged it on the
InvestorSoup.com website and in the matter of 10 days it reached a
high of $1.11. For those keeping score at home, that is an 83% gain!
I have, since that time, continued to track it and believe that NOW is
again the time that ALL my members need to be made aware of the
company.
Ironically, the thing that caught my eye first with this company was
not its sterling prospects, its strong financial condition or the
quality of management, but the NAME. I had seen a movie several
months earlier called "I Am Legend" with Will Smith. A great movie
and one well worth seeing.
Well, when a company called Legend International Holdings, Inc. (
LGDI)
came across the screen, I was curious and followed up....I am glad I
did.
LGDI is a phosphate mining and exploration company whose projects are
based in Australia.
LGDI`s current phosphate interests are adjacent to
Mount Isa, in the Georgina Basin, Queensland Australia.
LGDI is
working aggressively to develop and mine its phosphate deposits, with
a phased implementation plan to become one of the world`s leading
suppliers of Phosphate and Fertilizer products.
LGDI claims to control a significant strategic portion (5.2 million
acres) of the Georgina and McArthur River Basins in Australia’s
Queensland and Northern Territory, which are highly "prospective" for
phosphate (as the company calls it).
LGDI and Phosphate
Phosphate is not exactly a "sexy" commodity like oil or gold, but it
is valuable nonetheless. In order to produce high yields for farmers,
crops need large amounts of the three primary
macronutrients--phosphate, potassium and nitrogen
Nobel Peace Prize winner Norman Borlaug was once quoted as saying,
“This is a basic problem, to feed 6.6 billion people, Without
fertilizer, forget it. The game is over.”
Phosphate is a key ingredient in fertilizer and other industrial
products.
In order to understand the chemistry of phosphate and the scope of the
company`s holdings, I recommend that you review their site. This link
is a direct link to their projects page which gives a great deal of
information about its prospects:
LGDI Projects Page
Finances
LGDI is not just any exploration company....It has an extraordinarily
strong balance sheet. I strongly believe the old saying, "You are
known by the company you keep"......If that old saying is true, then
LGDI is in great company.
Here is a list of investors (individuals and institutions) that hold
significant stakes in
LGDI.
Renika Pty Ltd 21.22%
Atticus Capital LP 13.69%
Soros Fund Management
10.2%
IFFCO 8.84%
Chabad House of Caufield
8.8%
Park Avenue Discoveries LLC
4.79%
Parella Weinberg Partners 3.09%
Total 70.63%
And, yes, it is that GEORGE
SOROS that is one of the investors in
LGDI.
IFFCO is the largest agricultural cooperative in India (one of
the biggest markets for
LGDI`s phosphate and projected to be one of
LGDI`s biggest customers). And, Parella Weinberg Partners are a
multi-billion dollar global private equity firm.
The capital that has been raised from these and other investors have
given
LGDI a "war chest" that the company believes will be sufficient
take them through this phase of exploration and mining. The balance
sheet as of September 30, 2009 lists cash balance as A$ 78,024,637 (at
today`s exchange rate , that is approx. $73 Million U.S.) No long
term debt, either.
I can`t remember ever seeing an exploration company so well
capitalized.
More Good News
LGDI announced yesterday that they had inked another deal with a major
supplier/investor:
LGDI Announces Strategic Alliance With Wengfu Group Co. Ltd, One
of the Largest Fertilizer Producers in China
Much in the same way that
IFFCO has partnered with
LGDI, Wengfu is
working to close on a deal with the company. This agreement will have
Wengfu providing technical and logistical support to
LGDI to speed
their mining and production efforts and will cement a supplier
relationship with Wengfu for
LGDI. In addition, Wengfu is expected to
become a financial investor in
LGDI, too!
Read the full release here:
LGDI Release
It almost goes without saying that
LGDI is a very interesting natural
resource play. It is a commodity play that has a huge potential. It
also has an attractive chart to go along with it.
It appears that
LGDI might be prime for a bounce.
* Yesterday saw the company break out of its base with higher than
average volume
* The MACD continues to strengthen....it is not quite a bullish
signal, but the bearish signal is weakening considerably
* The stock is bouncing out of oversold levels and appears to be
under accumulation again.Regarding my previous blog on
LGDI, here is a link that you can follow
and read to see that I am not making this up:
LGDI Blog
I believe that it is time for my members to take a look at
LGDI. The
chart shows that it is a very attractive opportunity, but what
impresses me is the strength of the company. To my mind, this is a
stock that might have a near term "bounce" in it, but it should be
kept on my members` long-term radar as well. Once
LGDI begins mining
(and later production), the stock could be HUGE!
I will end this alert by using the last words from my earlier blog:
"They are confident bordering on cocky. Here is a little blurb from
their site:
“Legend plans to produce an average of 5 million tonnes per year
of phosphate rock concentrate of 30%+ P2O5 by 2012, thus becoming one
of the world’s leading producers of phosphate rock.“
I am rooting for them. I like their bravado. It is said that “it
ain’t bragging if you can back it up”. Let’s see if they can back it
up."
Remember to do your due diligence right away! This is an awesome
"Radar Stock"....all the way!
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