dap prices rise to $425, page-3

Here is the quote from that investor following LGDI, commenting on the BMO report. (Man is that third or fourth hand commmenting?)

I will paraphrase for those who don't like to read. LGDI's SP has an increase in the NPV (a type of valuation for those not into economics) by $1.30 per share for each US$25 rise in the Rock Phosphate price. With the way DAP is moving up you would assume RP is going up in concert. MAK's SP should have similar valuations based on those types of figures.
-----
MAK investing for Dummies. -->Higher DAP--> Higher RP price--> higher MAK SP.


"What is the current sentiment on the stock? How does your view differ from the consensus?

The current sentiment on the stock is positive. The stock is slowly coming onto the radar screen of major institutions, which are recognizing the value and opportunity facing the Company. The stock had a large run above $4/share in the commodity boom of 2008, but languished as a penny stock for most of 2009 despite the Companys strong balance sheet of A$79m (US$70m) and no debt. Improving prospects in the fertilizer sector and strengthening rock prices would make Legend break-even to profitable for initial sales later in 2010.

Also, the lone analyst covering Legend at BMO Capital Markets recently raised his rating of the Company from Market Perform to Outperform. The analyst presented base case scenarios at $125/ton of rock where Legends shares could be worth $2.50/share or 85% higher from its current price of $1.35/share. The estimate is highly leveraged to changes in rock price assumptions with even a $25/ton increase adding over $1.30/share to the target price.