Burford Capital Share Discussion Threads

[pireric] 06/8/2019 16:23

Absolutely possible Nchanning. Could well be another company. Market started selling it off at just past 2.10pm so could well just be snowballing expectations/fear. Lack of short interest is a good point as normally there's a decent amount.

[nchanning] 06/8/2019 16:21

Could easily wake up at 8am and find it is Rolls Royce that Muddy waters is referring to and bounce 20% straight away . BUR reported around 300m dollars of cash recently and has 172m of current liabilities . Seems unlikely to be a liquidity or insolvency risk unless it's an outright fraud . Also no recent increase in short tracker here which would expect before publication of muddy waters report . Appears to just be herd mentality and confirmation bias feeding off each other

[edmondj] 06/8/2019 16:20

Maybe there aren't 'relevant clauses' in the AIM rules but the general expectation is a major drop or rise - certainly in the order of 20% - as begetting a statement whether the board is aware of any reason.

[cool runnings] 06/8/2019 16:20

Muddy waters apparently doing an article on a company that's " potentially insolvent " tomorrow and the gossips are saying it's this .... check their twitter feed !

[jitters3] 06/8/2019 16:19

Bet it finishes on support at 1150

[jonwig] 06/8/2019 16:16

@ EdmondJ - still can't find the relevant clauses.

OK, a company has dodgy accounting (not against the rules, just iffy), so it goes to great lengths to explain its business in considerable detail. Doesn't make sense, does it?

The one big rule about conspiracy theories is that when there are many people involved, it can't be a conspiracy. So the moon landings were fake? But thousands of people were involved ... not one of them told.

Enron, Madoff? Very few people wre insiders. Independent Insurance: two people, I was told. My point is that with Burford, dozens of people are involved in the company's internal accounts.

[edmondj] 06/8/2019 16:15

That's because it was always intended to be a high-risk market. Capitalism working as it should. They tried to dress up the old Unlisted Securities Market in new clothes. Same old wolf!

[steeplejack] 06/8/2019 16:14

I know you like to dig out these exceptions to the AIM rule but I think we're all agreed that they are few and far between!The performance of the AIM index in the past quarter of a century of its existence has been truly appalling.

[clanger66] 06/8/2019 16:11

A £3bn company should not move this violently for no confirmed reason. The management should have listened and moved off AIM. But hey ho their advisors think it's fine as it is!I've thrown in the towel with Burford now. It's been good over the years but there's too much negativity around it at the moment. Shame as I do think it's a quality company.

[stewpot3] 06/8/2019 16:11

What are the dangers for the bonds here? (apart from losing value to par). I have quite a big position.

[edmondj] 06/8/2019 16:09

Quality business like Young & Co has a comparatively solid long-term upwards chart on AIM:



Casino market or casino companies?

[steeplejack] 06/8/2019 16:05

It's an AIM stock and for all the protestations of management about providing the equivalent of full listing requirements (which is probably true) it behaves like an AIM stock.For every Fever Tree there are some 60 AIM stocks that provide a sickening rollercoaster ride.Its not old fashioned world of investment ,it's a casino.If you want all the fun of the fair,then roll up but make sure you're playing with money you can afford to lose.I have a small holding here having sold out of my ISA months ago(afterall If it turns sour there are no capital losses available for ISAs).I won't be adding to Burford because unfortunately mud invariably sticks.

[edmondj] 06/8/2019 16:04

That might be the strict rule for AIM but standard listed practice is for boards to note a major price drop (or rise) and declare if they are aware of any reason.

[epo001] 06/8/2019 16:02

Is this market makers trying to stiff Woodford?

[onjohn] 06/8/2019 16:02

Shows everyone worried by accounts here

[nchanning] 06/8/2019 16:02

Is there any reason to think the stock Muddy Waters is talking about is BUR or just a lot of skittish investors here ?

[jonwig] 06/8/2019 16:01

@ EdmondJ - I've checked the AIM Rules for Companies (2016 edition), and I don't think that's the case, though it's widely believed.

All the rules say is that if a company is in possession of price-sensitive information then it must disclose it. A company is not obliged to tell the market if someone makes a false allegation or starts rumours. Now I may be wrong, please tell me!

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On another issue, if a share price is falling sharply, why are posters telling us they are unable to buy?? I haven't tried to, but it doesn't seem logical.

[onjohn] 06/8/2019 15:58

Tomorrow open could be 600

[cokehookerscars] 06/8/2019 15:51

This is going under a tenner.
Is It on concerns Woodford will have to sell ?

The company hasn't been doing badly. Are there concerns over securing funding for future cases if there is a recession or Brexit goes badly ?

There will probably be a bounce back at �10 and I'm tempted to top up at that price....but then it's just a psychological milestone !

[edmondj] 06/8/2019 15:49

Circa 20% down so company presumably obligated to comment.

[lomax99] 06/8/2019 15:49

Adding, Muddy Water know jack sh*t!

[dsmith57] 06/8/2019 15:43

This is now beyond incredible!