Burford Capital Share Discussion Threads

[mammyoko] 08/8/2019 10:24

Bonds up 14% today

[williamcooper104] 08/8/2019 10:19

If they have killer facts that refute MW then they would be inside trading if they bought ahead of making that public However they could still have indicated how much they were going to buy

[williamcooper104] 08/8/2019 10:16

They could also publish pro forma numbers at cost/cash and steer investors away from fair value statutory accounting

[sophia1982] 08/8/2019 10:15

Chris engel, does it make sense to you?

It would seem that the business is not generating cash which looks odd.

Btw, the accounting method which MW is attacking is fully described in the 2010 AR on page 7.

[wardy333] 08/8/2019 10:15

As litigation experts they won't rush a response here, possibly next Week.

[williamcooper104] 08/8/2019 10:15

They are if they chose to account for legal claims as financial assets IMF and LIT chose to account for then as intangibles and don't Fair Value them So I think that's technically true but disingenuous

[tsmith2] 08/8/2019 10:08

Order:refutation conference calldirector buyingit's spelt out in the last RNS

[share holder] 08/8/2019 10:08

I think that it would not be etical for them to buy shares until they have given their final statement on the Muddy Water report.

[the oak tree] 08/8/2019 10:06

Fixed Income Stock just needs a solvent company:

We'll know more once the company issues its report, but surely if we think its SOLVENT and its a big IF.......then the fixed interest stock must be a BUY at current levels?

You can buy the 5% maturing in 2026 for £81.
The 6.5% maturing in 2022 at £85. Not long to wait!

IMHO
(Im talking my own book up here!)

[blueteam] 08/8/2019 10:04

Been watching, no doubt their will be a big bounce once the response is done and detectors buy, shorts close and could see as much as 20% rise in a day. Long term can only see £10 top and then later in the year new financing. So cold be a good short term trade. Long term holders may average down.

[chris_engel] 08/8/2019 09:57

sophia, I believe that is the fair value markup. As you said, note 4 shows a markup of 405m as net increase in investments. With some other items you come to 361m. This has to be subtracted from the PnL as it is not cash.

[scotty666] 08/8/2019 09:57

buywell they said they would after the detailed response is released. read the RNS released yesterday afternoon !!!

[dijon52] 08/8/2019 09:56

Some big BUYS went through earlier. Hopefully holdings rns shortly

[buywell3] 08/8/2019 09:53

why have the directors not bought already ?

I wondered that yesterday

They do have the cash and IMO it would have acted as a decent stabilizer , can't see any argument V their buying

[sophia1982] 08/8/2019 09:50

I have spent a lot of time on BUR and one thing where I would appreciate help is the interpretation of the cash flow statement.
Take the 2018 AR.

CF from operating activities is 305m.
Changes in operating assets and liabilities (361)

This is further explained in note 4: as mainly:

Net (increase) on investments (405)

How do you read this?

Other lines of the CF statement are very clear (in particular proceeds from investments and funding of investments). However the first few lines are Greek to me.

Thank you

[chris_engel] 08/8/2019 09:50

Well, they do this already. You even get a massive spreadsheet with every claim at cost. They also report the proceeds and cash received.

[brexitplus] 08/8/2019 09:49

WC, tell me if I am wrong,but didn’t Burford say they are required to take fair value into account.

[williamcooper104] 08/8/2019 09:44

Would be very helpful if Bur just started keeping claims at cost with impairment reviews and only took cash to the P&L - this would understate value but in time markets would price for this and it would remove accounting and fair value as an issue

[kirk 6] 08/8/2019 09:38

Looks like metro is the next big bounce

[hatfullofsky] 08/8/2019 09:36

"Corporations may sue for defamation when false statements are made about their businesses or reputations. ... An actionable statement must be untrue, it must be made in writing or verbally to a third person, and it must cause the corporation damage"How long will it take BUR to reply ? Will they have a team working in this over the weekend?Why have the directors not bought already? My view is that there may be some truth in the report but it will have been completely exaggerated and tenuously linked to suit their position.

[1corrado] 08/8/2019 09:36

thanks to all.

[chris_engel] 08/8/2019 09:35

Even if you reduce the book value by 800m (which is roughly the fair value markup), I get to £3 per share. So currently BUR trades at 2 times the adjusted book value.

Add the value to sell the 61% stake of Petersen (they claimed that there was a lot of interest). This would be 610m, maybe with a discount of 25% for 460m. If you just add these together, then you have a book value of £4.78. Then BUR trades at around 1.3 times book value.

Unless BUR is fraud, which not even MW is claiming, this will put a nice floor under the share price when the dust settles.

[nudog69] 08/8/2019 09:34

If it’s aim mate no stamp duty

[1corrado] 08/8/2019 09:31

I am asking stamp duty not in spread betting but buying the shares outright.

[stentorian] 08/8/2019 09:31

1corrado,

No 0.5% SDRT as it is registered in Guernsey - not UK domiciled.