When I came across this company and its name, I couldn’t help thinking about one of my favorite movies of the last 5 years:  I Am Legend with Will Smith. If you haven’t seen it, rent it!  It is not a happy, feel-good movie.  In fact it is quite harrowing, but very well done.  Will Smith is awesome.  Here is a link to the official site:  I Am Legend.

Back to Penny stocks!

Legend International Corporation (LGDI) came up on my radar screen because of its chart.   When I dug in, I found another natural resource play with no revenues but with “great prospects”.   LGDI’s gig is phosphate and their fields are all in Australia.

Here is a succinct review of what they do:

Legend International Holdings, Inc (OTCBB: LGDI) is a mining and agriculture resource development company. The Company is principally focused on developing its world class phosphate deposits in the
Georgina Basin of Queensland, Australia. Legend controls a significant strategic portion (5.2 million acres) of the Georgina and McArthur River Basins in Australia’s Queensland and Northern Territory, hich are highly prospective for phosphate.”

Here is the chart:

The stock is sitting on a significant support level and while the Stochastics and RSI are not compelling, the MACD looks like it is about to cross.  Still below the zero line, the MACD is giving a weak bullish signal. Volume has really picked up, too.

The other reasons that I like this penny  stock are anecdotal. The company seems to be sitting on some very prolific and valuable mining claims.  You can tour their website and see for yourself.  They have kept their PR firm busy with all sorts of flattering PR’s…permits for this project and that project mainly.  Lost in the shuffle has been the news that the company is extraordinarily well capitalized.  No long term debt, cash of almost $80 Million…these guys are set up for success.

Legend has big plans.

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.