Burford Capital Share Discussion Threads

[jonwig] 21/6/2019 14:02

bestace, and others - are "the bears" denying increased demand, or is it something else?

A few years ago there was huge demand for CAT-bonds, chasing excess returns in a ZIRP market. These instruments got overpriced: yielding maybe 3% instead of a more sensible 10%. What could go wrong ... after all the world had seen 10 years without serious US windstorm damage! Then there was Harvey, then others in short order. (I was involved.)

Now, with demand for a new investment instrument, is the same happening? Can funders deliver these returns over a decent period. (I'm not talking about Burford, I'm looking at the rest.)

[sogoesit] 21/6/2019 11:48

Post 6313:
I am very much "less sophisticated"; and not only in investing!

However, I thought that one could lead a horse to water but one could not make it drink?
Please sophisticatedly enlighten me.
AIMSimpleton'sV

[bestace] 21/6/2019 11:36

I'm not sure you need to read between the lines when their press release is titled "IMF Bentham launches new US$500 million Fund in response to increased worldwide demand for dispute resolution finance"

and it includes statements like this:

"IMF is increasing its fund capacity in direct response to the exponential growth in demand for dispute resolution finance around the world"

and this:

"IMF is experiencing strong market demand for funding across all jurisdictions. Since 2015 IMF has recorded an 85% increase in the number of non-US funding applications and a 149% increase in US funding applications. Demand for dispute resolution finance is growing as a result of increased awareness, the increasing costs of arbitration and litigation and regulatory changes in some jurisdictions which now allow parties to seek dispute resolution finance. Demand is particularly strong in Asia and Canada where dispute resolution finance is still relatively new but it is becoming a mainstream global financial product."



The bears sometimes claim there is too much capital supply chasing too little demand, but statements like the above would suggest that isn't an issue.

[arregius] 21/6/2019 08:36

Imf bentham lunches new fund 500m. The market demanding capital. Anyone reading between the lines?

[djderry] 21/6/2019 07:25

Although the Petersen case is just one (albeit) high profile case in which Burford is involved (and there will be many twists and turns along the way),I note that Argentina has been re-admitted to the MSCI Emerging Markets index.Their market is up 14% in May.YPF,the company at the centre of the dispute is up 10% on the month.On a macro level, Argentina is being rehabilitated.Yes,the political risks are there,with Christina Kirchner running for Vice President,but Argentina needs to be seen to play by the rules if it wishes to continue to benefit from its re-admittance to the financial markets ( and the IMF).I expect that,as a settlement comes to light,there will be the usual negotiations,settlement discussions and (a little) discounting. ( The less sophisticated among you would call it 'horse-trading'.)Inexorably, Argentina,will be brought to a negotiated settlement and,like the thirsty horse brought to the water font,will do what all horses do and drink!

[qruz] 19/6/2019 21:43

I saw the same, looks like a mistake as we closed in London 2.4 up%

[dekle] 19/6/2019 21:24

Burford closed in the US $24 up 24%(on ADVFN), hope that's not a mistake

[qruz] 19/6/2019 14:49

I'd expect an RNS soon to announce date for 1H 2019 results.

[dekle] 19/6/2019 10:25

Good start again, how is level 2 looking? More buyers than sellers?

[rar100] 18/6/2019 18:49

Thanks also gettingrich slow, vulture fest I guess...

Looks like Kier has gone as low as it is going to and now up 14% today, which BUR would follow suit (just the up part)

[rar100] 18/6/2019 16:17

Thank you Lawdawg for your comprehensive report, withhout knowing the technicalities, I did think it unlikely (If it was possible to sue the President, from his antics I think there would be a long queue to do just that.

[5chipper] 18/6/2019 14:45

Nice 6-7% bounce from the morning lows - any known reason?

[gettingrichslow] 17/6/2019 14:03

rar, everyone is over on the KIE board I think!

[rar100] 17/6/2019 12:59

Where's everyone gone ?, never seen this board so quiet.

Wonder if it is possible to sue D.Trump as President?

[minerve 2] 17/6/2019 12:36

Burford Special Brew

[rar100] 14/6/2019 19:18

5chipper

Yeah a new focus will be refreshing and hopefully great results will turn it all around...

[jonwig] 14/6/2019 06:30

This website isn't usually one I follow, but there are some interesting observations here:

[5chipper] 13/6/2019 22:55

At some point, attention will focus on half-year results due in 6 weeks, and away from Woodford situation.

[gettingrichslow] 13/6/2019 20:58

Trident, you have to admit Minerva has got amazing timing. He literally sold out right at the bottom. That's not easy you know. If you tried it a hundred times again you probably wouldn't manage it.

[brexitplus] 13/6/2019 20:38

Citywire

“Hargreaves Lansdown has dropped the Woodford Income Focus fund from its £562 million HL Multi-Manager High Income fund, as withdrawals from Neil Woodford's smaller fund hit £116 million in six days.”

[brexitplus] 13/6/2019 20:33

Trident5

The secret of investing is to do the opposite of minerve😁8513;😁

[trident5] 13/6/2019 16:55

Kier has bounced up nicely straight after you sold out, Minerva? Lost your touch?

[minerve 2] 13/6/2019 15:50

Burford Special Brew

[steeplejack] 13/6/2019 14:52

Financial Times Article published at beginning of week is more insightful about what is dictating the share price than the Investors C. I suspect.Article starts by referencing Woodford woes and discusses major holdings.


“Burford’;s accounts are as eye popping as it’s share price growth.Operating income leapt to $345m last year,according to S&P Global,10 times higher than it was in 2013.Operating cash flow dropped from $42m to a negative $233m.The group is borrowing to fill the gap.Net debts have tripled in two years to $331m.
Fans will riposte that this is chicken feed compared with investments in legal cases valued by Burford under the oversight of EY,at $1.9bn.

However,that figure depends in part on the company writing up the value of legal tussles that have not finished.These non cash gains accounted for 54% of revenues in 2018.Most of the rest came from cases settling in Burfords favour.

In fairness,Burfords accounting policies are conservative by the very racy standards of litigation funding.It has a good investment record.According to Jeffries analysts,it has been on the winning side in two thirds of cases and four fifths by value.”