AGORACOM Small-cap Investor Relations Blog

Trading in former AGORACOM Client Legend International Holdings turned up strongly at the start of trading season this year with some heavy volume and a significant price move.  See this 5-day chart below (click on it to see live chart):

 

A look at a recent SEC filing shows that IFFCO (Indian Farmers Fertiliser Cooperative) has already added to its significant holdings of Legend by acquiring about 6,000,000 shares in the open market last week.  The did so through Kisan International Trading, FZE (“Kisan”), a corporation wholly owned by IFFCO.   Kisan is a private investment and trading vehicle for IFFCO.  Here is a list of the exact purchases and dates:

September 8, 2009 – 727,300 shares @ $0.60

September 9, 2009 – 2,323,700 shares @ $0.60

September 10, 2009 – 2,849,946 shares @ $ 0.60

As a result of these purchases, IFFCO now beneficially owns 51,300,464 shares of Legend International Holdings, or 21.1% of the company.  That includes an option to acquire 17,000,000 shares.  Legend has about 226,000,000 shares outstanding.  This is significant considering the following:

LGDI SIGNS LANDMARK AGREEMENT WITH IFFCO, INDIA’S LARGEST FERTILIZER ENTERPRISE

On July 16th, 2008, LGDI and IFFCO, announced this landmark agreement.

IFFCO is India’s largest fertilizer enterprise, a cooperative with over 50 million farmers associated with it, primarily engaged in production and marketing of nitrogenous and phosphate fertilizers in India. IFFCO has five fertilizer plants in India with a domestic annual capacity of producing 4.3 million tonnes of phosphatic fertilizers and 4.2 million tonnes of nitrogenous fertilizers.

When your biggest future customer has enough confidence in you to outright own 34,000,00 shares + an option to acquire another 17,000,000 shares, you have to feel good about the company.

Other notable notes are as follows:

GEORGE SOROS OWNS 10.18% OF LEGEND INTERNATIONAL

Reuters reported that George Soros, via Soros Fund Management, has taken a 5.19% stake (11.7 million shares) in AGORACOM client Legend International Holdings (LGDI: OTCBB).

On October 17,2008 his stake in LGDI was increased to 10.18%

SALMAN BELIEVES LEGEND IS A LIKELY TAKEOVER TARGET OF POTASH CORP

According to this 2008 excerpt from the October 24th Metals Morning Note from Salman Partners , Potash Corporation of Saskatchewan is “On The Prowl” as depressed equity prices have provided significant acquisition opportunities.

Specifically, Salman believes Legend International Holdings is a likely target given its ability to provide Potash Corp with an entrée into Indian markets.

If you are looking for reasons behind both the Soros and IFFCO investments and Salman’s call for an acquisition by Potash Corporation of Saskatchewan, take a look at the following.

CONCLUSION

If LGDI is good enough for IFFCO and George Soros, it is worthy of a serious look from any investor with less investment savvy.  Sometimes, these kinds of 3rd party investments are the best due diligence.  As always, do your own.

Regards,

George