LGD - Legend Corporation

[Rapide3]

I was referred to LGD about 18 months ago as a BUY and upon reading some of the announcements and looking at charts on my "all-new" Investor package I felt it was a reasonable prospect and bought-in.

Having found ASF I was keen to see what others had thought, or could tell me about LGD and if I missed some tell-tale signs before the recent drop in SP. As there were no info references, I hope that there might be others who have looked at this stock or wanted to find out more.

I'm also pretty new to trading and appreciate the valuable comments and advice by the more experienced in these forums. If there were identifiable signs prior to the March dip, through charts or otherwise, I would appreciate the pointers.

"If you're not in,:luigi: you can't win !" - Mark Twain - possibly
DYOR - Rapide3

 

[skc]

Found this little copmany some months ago and took a small position. Added to that today at 31.5c.

Strong half year results announced with EPS in H1 = 2.3c, up 20% on last year. Dividend of 1c announced.

That extrapolates to a full year PE ~6.8. Paying PE <8 for good growth potential often yields a good outcome imho.

 

[McLovin]

Interesting little company. I didn't even know they were still making that sort of thing here, it seemed too commoditised.

 

[skc]

Interesting little company. I didn't even know they were still making that sort of thing here, it seemed too commoditised.

Feels like a boring stable business with decent organic growth. I don't know much about the industry but happy to just trade/invest in the financials.

 

[piggybank]

Investor presentation held in late August http://stocknessmonster.com/news-item?S=LGD&E=ASX&N=646017

 

[greggles]

Gap up and breakout today for thinly traded Legend Corporation after the release of its Annual Report, Investor Presentation and Market Update.

Highlights:

• Revenue of $114.9 million up 15%
• NPAT of $6.0 million up 60%
• Final dividend of 0.75 cps for an annual dividend of 1.45 cps up 21%

The company stated that all segments of the Group performed well during the year, with the Electrical,
Power and Infrastructure business being the outstanding performer. This segment benefited from increased demand for the company's products driven by the continued nationwide spending on infrastructure and commercial projects and the resumption of capital works by Power utilities.

The 25c mark, which has been resistance for the last seven months, was breached today on the second highest volume day in the last 12 months. LGD finished the day at 28c, up 16.67% on Friday's close.

 

[greggles]

Legend Corporation released an upbeat Market Update today that reads as follows:

TRADING UPDATE – PRELIMINARY RESULTS TO 31 AUGUST 2018

The Directors wish to advise that Legend has experienced strong trading conditions for the first two months of the 2019 financial year. Preliminary unaudited results show EBITDA up approximately 70% on the same two months last year. This result has been achieved on increased revenue of 28% and slightly higher gross margins. Excluding the results of recently acquired business, EDITDA is up approximately 60% on a like for like basis.

Strong trading in the Electrical, Power and Infrastructure businesses has been the primary driver of the improved performance.

The Directors are acutely aware that trading conditions can vary from month to month and urge shareholders to view these early results with caution. A detailed trading update will be given at the Annual General Meeting on October 26, 2018.

Legend is also pleased to announce the acquisition of PCWI International Pty Ltd (PCWI) effective 1 August 2018. PCWI is a manufacturer, distributor and exporter of specialised test and measurement equipment used in gas, oil and medical applications.

PCWI highlights:

▪ Acquired for a single payment of $2.6 million financed by debt.
▪ Revenue for the year ended 30 June 2018 of $3.3 million.
▪ Average annual normalised EBITDA for the four years ended 30 June 2018 of $0.75 million.
▪ See www.pcwi.com.au

The announcement was released before the open and LGD gapped up when trading commenced, opening at 33c and eventually reaching an intraday high of 36c. It has since retraced back to 33.5c - up 19.64% so far today - but the breakout is undeniable. It will be interesting to see where LGD settles and consolidates. Am watching with interest.

 

[galumay]

LGD is a business I hold indirectley in a small fund, from a fundamental point of view its a deeply undervalued business, very well managed, tightly held by founder/owners and an easy to understand business with a clean balance sheet. Its not surprising to see Mr Market starting to see the value!

 

[rcm617]

Came out with a good HY report but has gone backwards since, with a small bounce on Friday. Has grown well with NPAT up 46% on the pcp and four consecutive halves of growth. Management has forecast more growth next half which should have it on a PE of less than 8, cheap for a company with this history of growth.

 

[System]

On September 3rd, 2019, Legend Corporation Limited (LGD) was removed from the ASX's Official List in accordance with Listing Rule 17.11, following implementation of the scheme of arrangement between LGD and its shareholders in connection with the acquisition of all the issued capital in LGD by Greenland BidCo Pty Ltd.