Burford Capital Share Discussion Threads

[edmondj] 07/8/2019 07:32

The test of their words will be whether directors and PDMR's buy equity after the alleged 'manipulation'.

[gettingrichslow] 07/8/2019 07:31

So let's be clear...strong statement from the company which could hardly be clearer...so if this doesn't rise strongly today, what is our conclusion?

[5chipper] 07/8/2019 07:30

Do they not have a division aimed at detecting the whereabouts of people and their assets

[time_traveller] 07/8/2019 07:30

Burfords number of cases might be about to increase by one - and this would be a case I'd love to see them win!

[nigelpm] 07/8/2019 07:29

Would be much better to buyback shares or just focus on the business rather than getting involved in trying to litigate against short sellers.

[stoxx67] 07/8/2019 07:28

not sure its about case selection Shanklin... its about Burford nipping this in the bud, when they find out who the manipulators are and make them pay handsomely, no one will mess with Burford again, so its basically ensuring this does not happen again and with the complexity of cases Burford engage , one imagines they will find and punish the culprits, and i sincerely hope they do.

[desk100] 07/8/2019 07:24

‘A few nervous people out there’ you’re not kidding lol

[shanklin] 07/8/2019 07:24

I wonder whether going after the market manipulators would get through BUR's case selection process were it asked to act on behalf of a third party. As it is, given BUR's expertise, it seems the obvious thing to do... ...together with share buybacks.

[5chipper] 07/8/2019 07:23

Could get interesting.

[farmerturnedpc] 07/8/2019 07:22

So do we think Muddy Waters report is about BUR then?

[edmondj] 07/8/2019 07:21

jonwig,

It was in the 1992 Cadbury Report on Corporate Governance!

Best practice to change auditors after 4 years.

;-)

[3dwd] 07/8/2019 07:20

I am sure there will be a few nervous people out there ..

[jonwig] 07/8/2019 07:18

Yes, that's a full strength response, and if they can establish market manipulation, someone will pay.

The only thing Burford should think about changing is "has been audited by Ernst & Young since 2010". best practice today would frown on that.

[alphabeta4] 07/8/2019 07:15

If it is here they had better be careful - they're taking on a bunch of lawyers 😄

[maddox] 07/8/2019 07:13

A very robust rebuttal and rather than the typical 'company knows of no reason for the decline in the share price' statement they believe it to be as a result of market manipulation and will look to take legal action against the shorters.

The statement also accurately articulates the Short Attack Playbook.

It won't be too difficult to identify the perpetrators, the evidence will be fresh and will be self-identifying themselves at 8am.

Perfect response - looking forward to seeing this play-out.

Regards Maddox

[stoxx67] 07/8/2019 07:11

good statement of intent, need to cane the short selling scum.

lets hope they find out who was on the end of this and sort them out once for all, doubt they will do it again once Burford has finished with them ( well , not with Burford anyway)

[lomax99] 07/8/2019 07:11

RNS Number : 2085IBurford Capital Limited07 August 20197 August 2019STATEMENT RE SHARE PRICE MOVEMENTThe Board of Directors of Burford Capital Limited ("Burford Capital" or "Burford" or the "Company") notes the decline in the Company's share price yesterday and confirms that it knows of no operational or corporate reason for the price movement.Burford just reported the best results in its history and highlights the following:-- Burford's cash position and access to liquidity is strong. To be sure, Burford will need to take on additional external capital to continue its growth as it has done successfully throughout its history, but this is a cause for celebration, not for alarm, because it means the business is growing rapidly. We have discussed our capital structure at length in the past. Burford has a wide variety of capital sources available to it and significant ability to manage its cash outflows, and has over $400 million of cash and cash equivalents on hand as of 5 August 2019.-- Burford's returns are robust. In fact, our litigation finance returns rose to their highest-ever levels as of 30 June 2019.-- Burford uses the same IFRS accounting that is used widely across the financial services industry and has used consistent accounting policies for many years. Burford has been audited by Ernst & Young since 2010 with clean audit opinions every year.-- In addition to our audited IFRS reporting, Burford provides cash-based investment reporting in extraordinary detail, including providing line-by-line investment detail about every litigation finance investment we have ever made. We just put the latest installment of that reporting on our website yesterday. We are transparent about how we analyse and report on that data; our approach has been consistent for many years.Burford believes that yesterday's share price movement relates to a rumour of a potential "short attack" or "bear raid", a tactic where short sellers take on a short position in a company's stock and then engage in claims about the company in an effort to alarm investors, depress a company's stock and profit from the decline. Burford also believes that some of its prior recent share price volatility is related to such activity.There is a clear line between appropriate commentary and market manipulation, and Burford is investigating, with the assistance of market experts and experienced outside litigation counsel, the market activities here and will take appropriate legal action should we discover actionable misconduct. We are strongly suspicious that yesterday's significant fall in the share price was based on such actionable misconduct.Short sellers of this ilk are not long-term investors. Rather, their goal is to panic investors into selling their holdings and thereby to drive down the share price. If investors oblige them, then the attack succeeds, long-term investors are harmed and the short sellers pocket a quick payday.Companies are largely powerless to intervene in this dynamic other than by continuing to perform, just as Burford has been; the way to thwart the attacks is for investors to recognize manipulation for what it is and not behave as the short sellers hope.Burford will continue to focus on business performance in our growing market and its long-term goals.

[pireric] 07/8/2019 07:10

Seems a pretty sensible release

[skinny] 07/8/2019 07:07

There is too much of this happening.

[simba_] 07/8/2019 07:06

They seem nervous.

[fangsforthememory] 07/8/2019 07:06

Strong statement wouldnt like to be on the receiving end if its actionable

[edmondj] 07/8/2019 07:03

7 August 2019



STATEMENT RE SHARE PRICE MOVEMENT



The Board of Directors of Burford Capital Limited ("Burford Capital" or "Burford" or the "Company") notes the decline in the Company's share price yesterday and confirms that it knows of no operational or corporate reason for the price movement.



Burford just reported the best results in its history and highlights the following:



• Burford's cash position and access to liquidity is strong. To be sure, Burford will need to take on additional external capital to continue its growth as it has done successfully throughout its history, but this is a cause for celebration, not for alarm, because it means the business is growing rapidly. We have discussed our capital structure at length in the past. Burford has a wide variety of capital sources available to it and significant ability to manage its cash outflows, and has over $400 million of cash and cash equivalents on hand as of 5 August 2019.



• Burford's returns are robust. In fact, our litigation finance returns rose to their highest-ever levels as of 30 June 2019.



• Burford uses the same IFRS accounting that is used widely across the financial services industry and has used consistent accounting policies for many years. Burford has been audited by Ernst & Young since 2010 with clean audit opinions every year.



• In addition to our audited IFRS reporting, Burford provides cash-based investment reporting in extraordinary detail, including providing line-by-line investment detail about every litigation finance investment we have ever made. We just put the latest installment of that reporting on our website yesterday. We are transparent about how we analyse and report on that data; our approach has been consistent for many years.



Burford believes that yesterday's share price movement relates to a rumour of a potential "short attack" or "bear raid", a tactic where short sellers take on a short position in a company's stock and then engage in claims about the company in an effort to alarm investors, depress a company's stock and profit from the decline. Burford also believes that some of its prior recent share price volatility is related to such activity.



There is a clear line between appropriate commentary and market manipulation, and Burford is investigating, with the assistance of market experts and experienced outside litigation counsel, the market activities here and will take appropriate legal action should we discover actionable misconduct. We are strongly suspicious that yesterday's significant fall in the share price was based on such actionable misconduct.



Short sellers of this ilk are not long-term investors. Rather, their goal is to panic investors into selling their holdings and thereby to drive down the share price. If investors oblige them, then the attack succeeds, long-term investors are harmed and the short sellers pocket a quick payday.



Companies are largely powerless to intervene in this dynamic other than by continuing to perform, just as Burford has been; the way to thwart the attacks is for investors to recognize manipulation for what it is and not behave as the short sellers hope.



Burford will continue to focus on business performance in our growing market and its long-term goals.

[allonblack] 06/8/2019 22:36

"Accounting fiasco thats potentially insolvent and possibly facing a liquidity crunch". Usually the only corporates you can assume a rights issue wont resolve liquidity issues are banks due to 30x leverage. To lob that accusation at a corporate with supportive shareholders and worst outcome a rights issue to roll some debt is corporate defamation.

[nigelpm] 06/8/2019 22:17

Let's await the report and details - as some have said might not even be about BUR - no point in jumping the gun until confirmed. Then one can read the report and assess for themselves.