Burford Capital Share Discussion Threads

[porsche1945] 08/8/2019 09:31

@1corrado. No.

[buywell3] 08/8/2019 09:29

MW will IMO have done their homework re litigation before going public

Not as if they have not done this before so they know the state of play

Shorting stock is not illegal is it

Have they slandered is the issue I would have thought

Going on video IMO means they must think they are bullet proof with what they have said thus far

IMO they would have had their legal bigwigs going over every word before screening.

Oh , and please do not think for one minute that they never knew what questions were going to be asked

[williamcooper104] 08/8/2019 09:23

No tax on spread betting all my tax advantaged accounts are full/don't fancy selling anything in them and I've used up all my capital losses The collateral requirements on spread betting these days does take a lot of the fun out of it through

[davez1] 08/8/2019 09:23

IMF Bentham responds to share price movement of rival Burford Capital Limited
Contact:
Australia: Jeremy Sambrook, General Counsel and Company Secretary / [phone] / [e-mail]
Australia: Marella Gibson, Chief Marketing Officer | [phone] | [e-mail]
US: Gretchen Koehler, Chief Marketing Officer | [phone] | [e-mail]


PRESS RELEASE

IMF Bentham responds to share price movement of rival Burford Capital Limited



PERTH, AUSTRALIA 8 AUGUST 2019: In response to a (short) report issued by a US investment firm on 7 August 2019 on Burford Capital Limited (Burford), leading global dispute resolution financier and industry founder, IMF Bentham (ASX:IMF), notes the following in relation to IMF’s accounting policies and disclosures.

“There are fundamental differences between IMF Bentham and other funders. Our investors understand and value this and our investor base now includes some of the largest, most sophisticated institutional investors in the world.” says CEO and MD, Andrew Saker.

Accounting treatment of Litigation Finance Assets

The accounting treatments adopted by IMF and some of its competitors vary materially.
IMF’s litigation funding assets, and those of investment vehicles managed or advised by IMF, are classified as intangible assets and therefore, in accordance with the International Financial Reporting Standards (IFRS), are recognised at cost throughout the life of the investment and are subject to impairment testing. IMF does not record any unrealised gains attributable to market value adjustments of its litigation assets during the life of the investment.
IMF recognises any gain on assets at the time of completion of an investment. Losses on investments are recognised at the earlier of either negative developments which impact potential recoveries via an asset impairment, or from a loss at trial.
IMF’s conservative and transparent approach removes potentially-artificial estimations of asset values and offers investors comfort in the integrity and stability of the reported results.
IMF prepares its accounts in accordance with the Corporations Act and complies with the Australian Accounting Standards and the IFRS.
IMF’s key metrics

As stated in prior ASX announcements, IMF calculates its aggregate Return on Invested Capital (ROIC) and Internal Rate of Return (IRR) on concluded investments only (excluding any partial conclusions), withdrawals and overheads. These metrics include losses on concluded cases.
Funding for Future Investments and strategic capital management
A substantial capital position is essential in the dispute finance industry to underwrite investments.
During FY19, IMF significantly increased its capital reserves with the launch of two new Funds (Fund 4, Fund 5) with aggregate capital commitments of US$1 billion (including commitments from IMF of US$200 million). This external capital secures IMF’s medium-term funding requirements for its current and future litigation funding investments.
In FY19, IMF also completed an equity placement raising approximately $75 million, refreshed the terms of its listed bonds pushing maturity out to FY23 and raising a further $41 million from the issue of new bonds.IMF also currently expects to receive income of approximately $70 million in FY20 from conditional and in principle settlements which have occurred since 1 July 2019 (of which $23.5 million relates to on-balance sheet investments and $45.7 million reflects fund investments).
About IMF Bentham Ltd

IMF Bentham is one of the leading global dispute resolution financiers, headquartered in Australia and with offices in the US and Canada, Singapore, Hong Kong and the UK. IMF Bentham has built its reputation as a trusted provider of innovative funding solutions and has established an increasingly diverse portfolio of dispute resolution funding assets.

IMF Bentham has a highly experienced dispute resolution funding team overseeing its investments. We have an exceptional success rate over 187 completed investments and have recovered over A$1.4 billion for clients since 2001. IMF now has close to A$2 billion in combined funds under management globally, making us a strong ally for our funded clients.

For further information regarding IMF Bentham and its activities, please visit www.imf.com.au.

[brexitplus] 08/8/2019 09:22

Cc

The MW report was 25 pages, and these are lawyers, so nothing will move very fast. They also need to talk to the auditors.

They should, and if professional, look at every one of their answers, then try to pull them apart to find counter arguments and cover these too. After all, this is what lawyers do.

[buywell3] 08/8/2019 09:21

The GBP is now winning the currency wars hands down

The only thing Carney has IMO done right


Does the panel think that parity with the $US will result in more litigation work from the USA for BUR ?

[1corrado] 08/8/2019 09:21

so buying them share as 0.5% stamp duty.

[knowing] 08/8/2019 09:20

Do you honestly think that a formal response will be rushed out? They will take their time and put together a response which will counter all the points raised by MW. That will be the impetus for a significant rise in the stock.

[gettingrichslow] 08/8/2019 09:20

William, why spreadbet when there's no stamp and almost zero trade costs?

[cc2014] 08/8/2019 09:18

Riverman #7907

Yes thanks I read the report in full yesterday. I (luckily) sold the remainder of my bonds last week (I don't own the shares) and after reading the reading the report was not prepared to buy the bonds back even at a 15% yield.

I agree there is alot of detail in the report and a response will need to be detailed. However, I believe most management in this position would have been up all night writing the response. If the report is of no merit this should be easy and we should have had an RNS at 7:00.

I am happy to accept that they might want to run the response past a legal team (bu this implies the responses aren't easy but more opinion) who may not have been available so I'll give them a few extra hours on the timing of the response.

[williamcooper104] 08/8/2019 09:14

And IG quoting a 6 point spread - used to be c20 points Will spread bet momentum - when it appears - for a bit of fun

[williamcooper104] 08/8/2019 09:13

No sign of it yet - strangely calm

[williamcooper104] 08/8/2019 09:13

Don't think so

[brexitplus] 08/8/2019 09:11

Burford quite rightly taking their time. They will want to counter each and every criticism, look at the legal side v MW, look at governance, talk to SWF, and major investors, particularly Invesco and Woodford.

It will then be presented to analysts, etc.

Best to get everything covered rather than release a bit at a time. That looks like panic, and I’m sure they won’t panic.

[1corrado] 08/8/2019 09:07

is there is stamp duty in this stock?

[nw99] 08/8/2019 09:06

Yes a huge one

[1corrado] 08/8/2019 09:05

considering to buy some for the rebound but will they be one........................

[edmondj] 08/8/2019 09:04

Depends what is the "run-down" valuation if Burford has lost investors/litigants' trust and fails to regain it.

[1corrado] 08/8/2019 09:03

Is this stock oversold????

[wallywoo] 08/8/2019 08:53

Dipped my toe in here at 585 for a flutter. Looks good value at the same valuation as 3 years ago when earnings and investments were all much lower. Expect a bounce over the next month or 2, when the market is back from holidays!

[chris_engel] 08/8/2019 08:45

The ideal scenario would be if there was a case that had a positive verdict and high value. They did hint at something like this in they FY/18 report (p.21).

"One of the ongoing investments in 2010 has
in fact reached a settlement after significant
appellate activity but the matter is complex and
thus the settlement approval and distribution of
proceeds is a multi-year process (which is why
we also offer post-settlement capital to law firms)
so it will still be some further time before we know
our entitlement. The other ongoing matter is a
portfolio of complex high-value transnational
matters that continue to wend their way through
various judicial proceedings and likely still have
some years ahead of them, but we remain
optimistic about its ultimate outcome. "

[minerve 2] 08/8/2019 08:44

Personally, I think the best response Bur could do is to engage a 3rd party auditor in the response, or to actually provide the response. Maybe even one they don't currently use. It would take time, but they might only get a few chances to maintain credibility, best make it right.

[mad foetus] 08/8/2019 08:38

Yes, but how much do they hold the balance for is a key question: I suspect much less than the pro-rata figure

[tsmith2] 08/8/2019 08:36

They recently sold 10% interest for $100mn?

[riverman77] 08/8/2019 08:34

CC2014 - a detailed response is going to take some time. Have you read the MW report? Dozens of very detailed examples with accompanying calculations - this will require equally detailed analysis by BUR if it's going to be credible.