LGDI_chart_Nov_1.pngIn our latest report on Legend International Holdings, Inc. (OTC:LGDI) four months ago we laid strong emphasis on the fact that LGDI had gone into a consistent spiral of decline. Unfortunately, one does not need a telescope to see what has been happening with LGDI stock since then.

It was only a couple of days ago, i.e on Oct. 27, when LGDI hit a six-month low of $0.30 per share. At least, it partially recovered on the next day, only to register another negative performance yesterday. Indeed, LGDI closed yesterday’s session at $0.32 per share, i.e going down 3% as compared to its Friday closing value.

LGDI_logo_Nov_1.pngLGDI’s unenviable market position is largely due to the lack of official news for the last five weeks. Actually, the last press release about LGDI came up on Sep. 22 when the company last updated on its Paradise Phosphate Project in Queensland, Australia. According to the update, LGDI had approached multinational corporations in search of strategic investors with regard to the further development of the projects. Besides the fact that negotiations were taking more time than expected, no additional details saw the light of day.

Trading on the OTCQB, LGDI is a diligent SEC filer. As seen in its latest 10-Q form for the second calendar quarter, the company’s balance sheet contains:

  • cash reserves in excess of $10.7 million;
  • $14.5 million in current assets vs. $2.4 million in current liabilities;
  • zero revenue and a quarterly net loss of $7.2 million.

For the 12-month period ended Jun. 30, 2011, LGDI has been loosing an average of $7 million per quarter. Unless the management somehow manages to attract a strategic investor as soon as possible, the company will most probably continue to incur grand losses, thus further depreciating on the stock market.