Burford Capital Share Discussion Threads

[goodbloke1] 10/8/2019 10:17

Explain your great economic theories to back up your arguments and I will test them apart lol

[goodbloke1] 10/8/2019 10:15

You will rest your case will you see I am proved right lol!

[minerve 2] 10/8/2019 10:13

See what I mean? I rest my case.

[goodbloke1] 10/8/2019 10:10

If you have an excellent understanding of Economics you will see that we will benefit hugely from Brexit.Us leaving the EU is equivalent to 19 of the smaller countries leaving or two thirds of the block! Their economies will be devastated without a good trade deal for them and us which we will get after we leave.Its either that or constant internal strife within the EU which the leadership will not want! On top of that , there are the huge Asian and American trade deals about we will form.The EU of course know this which is why they are now sweating. The backstop was being used simply to trap us into a never ending regulatory and trade alignment without the ability to ever form trade deals with the rest of the world.After our exit I predict a gradual EU break when they realise the advantages we will have!

[shanklin] 10/8/2019 10:07

EdmondJ

"MF’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."

That's a very curious rebuttal from IMF Bentham. If I understand correctly, they state that their P/L and B/S both understate the value of cases which have to date moved to their advantage. So, IMHO, they are not presenting a fair or reasonable picture of their business to the market.

Are we really meant to believe that the company would not be attempting to perform these valuations internally albeit not sharing them with the market.

Obviously provides massive opportunity for insiders who know more about what is going on in the business than those people who only have access to market reports.

I much prefer the Burford Capital (LON:BUR) approach which has the benefit of putting all their internal valuations in the public domain.

[minerve 2] 10/8/2019 10:01

Good post Devalpha, I completely concur with what you have said.

Of course, we are not just talking about Burford here on this point. Many investors, and I say that loosely, simply don't understand what they are investing in. In my opinion, this extends to the biggest issue of today. Most Brexiters have no idea about what Brexit really is and what it means, they don't understand business, they don't understand economics, in fact generally, most Brexiters understand very little. Farage takes the opportunity of ignorance, just like Block. It is all very sad because the ignorants, who already believe they are victimised, will be the eventual losers. Life failure, most of the time, is down to you. Not the market, or the EU, or anyone else, you. When you recognise this fundamental concept you learn from your mistakes.

[gettingrichslow] 10/8/2019 09:59

Minny, have you seen the Top Post situation now? Would you like me to take it off so that it no longer embarrasses you?

[edmondj] 10/8/2019 09:59

"I think the learning here is that we all need to understand the business fully, including the accounting rationale before investing meaningful sums. If you have done so then It gives you the strength and fortitude to hold under extreme psychological pressure when something like this happens."

Some of Burford's accounting treatments are contentious though, as has clearly been shown by occasional scepticism expressed here also Canaccord's concerns - rejected by bulls - and how within the industry IMF Bentham has reacted to the controversy by distinguishing its more conservative accounting from Burford's - 'so investors can be confident in the highest integrity'.

[onjohn] 10/8/2019 09:57

• Burford is at the beginning of its incredible journey.
• The legal industry is extremely large, and the penetration of litigation finance is not
higher than 1% to 2%.
• Low penetration, compelling customer value proposition, and Burford’s undisputed
industry leadership create a long growth runway that could last decades

[goodbloke1] 10/8/2019 09:54

Brilliant expose! I believe MW will be hit for a multiple of what that made in damages if this goes to court!

[stoxx67] 10/8/2019 09:53

a good post MF...

agree entirely, if you benefit through knowingly inaccurate and fallacious statements, the the proceeds are proceeds of crime under UK law, i believe and the crime was conducted on the UK market.

will be interesting to see how Burford play this, i sincerely hope the action they take is company ending for Muddy Waters Capital.

[haveapunt1] 10/8/2019 09:51

Company only has 10% buy back I believe and have said it will depend on price action. Given it’s rising I can’t see SBB unless we take a big hit again next week after any new MW report

[devalpha] 10/8/2019 09:50

My initial thoughts when this all kicked off last Tuesday afternoon through Wednesday was that Block's picked a fight with the wrong crew. Having closely followed the events of the last week, and watched the rapid, clear, calm response from Bogart & Molot, I'm more convinced now than before that he has. He's underestimated them. Hubris. Anyone who hasn't watch Block's Bloomberg interview last week should, then form your own judgement. Hopeless desperation and I suspect an internal realisation that he was out of his depth. The real tragedy here is the understandable fear provoked selling from retail investors which has given Block a quick buck. He's sitting pretty now whereas a lot of retail sellers have been shafted. I think the learning here is that we all need to understand the business fully, including the accounting rationale before investing meaningful sums. If you have done so then It gives you the strength and fortitude to hold under extreme psychological pressure when something like this happens. The irony here is that I believe Burford will emerge from this in a stronger position than before. Their calmness under attack, rapid clear response and longer term pursuit of Block will earn them more exposure, respect and serious longer term investors than before.You need to pick your fights carefully. Good luck to all long term holders.

[minerve 2] 10/8/2019 09:47

brexitplus

You didn't listen to Block's words properly. He actually referred to Enron and a certain type of accounting because he knew people like you would latch onto the idea of it's accounts when it went bankrupt. In other words, he created the environment for an obvious assumption. Of course, that was the idea, but Enron had a long history where it wasn't bankrupt and still used the same accounting system.

There is nothing in respect to Enron that is litigious here. Block isn't that stupid.

Block is taking the opportunity of market ignorance and you are playing the part.

[bbmsionlypostafter] 10/8/2019 09:44

If they wanted to make a punt they would have gone to the race track & put $2 win on a 100/1 shot.

They aren't in the business of making punts, they are in the business of making money.

Can't you see that?

[gettingrichslow] 10/8/2019 09:44

Punt, not sure how you think a buyback ‘wouldn’t achieve anything’? Of course it would, it would reduce the number of shares in circulation and therefore drive up the value of the remaining shares, so if the company believes they are undervalued, there is a clear case for doing exactly that.

[1oughton] 10/8/2019 09:44

Wouldn't wanna be in this over the weekend. Lol

[brexitplus] 10/8/2019 09:42

If Burford buy backsay £100 million in shares, at say £9, and don’t cancel them this would be an investment. Sp £13.50 and £50 million profit.

Simples!!!

[goodbloke1] 10/8/2019 09:41

Putting a big wedge on and then issuing report knowing what the likely market reaction is going to be on typical aim holders is not a punt in my view!

If you can’t see that then you indeed seem to think stupidity is a virtue!

[bbmsionlypostafter] 10/8/2019 09:36

punt,

goodbloke doesn't understand what he's talking about.


goodbloke1
10 Aug '19 - 08:54 - 9067 of 9081
0 3 0
You need to wise up.If MW were that sure of their research they wouldn’t have scrambled to almost close their sweaty short and let it run! Blatant market manipulating in my opinion.The more ethical thing would have been to put out the report first and then short giving everyone a level playing field including themselves! They made sure they shorted big first then put out the report, I believe.

[shirley83] 10/8/2019 09:36

Shorts losing for sure. News this weekend will push up the share price