Burford Capital Share Discussion Threads

[cockerhoop] 15/2/2022 08:46

Operating costs are massively elevated in 2021 due to the non cash accruals in both asset recovery and legal finance.

[tradertrev] 15/2/2022 08:45

...because the IRR is based on the gross return on completed cases. These has been very little change to the completed case record over the past year. Personally I would expect that, as the pandemic-delayed caseload comes through to the completed case stats, the IRR will get diluted a little. I'm not worried about that.

[kaos3] 15/2/2022 08:45

NO !

I cant get it - as for a simple gardener like myself with a common sense makes no sense.

And can I politely ask - was that a profit warning in "expert doublespeak"?

[loglorry1] 15/2/2022 08:44

Jeeps, "information is being provided....". FFS its not rocket science. Just tell us how you made the loss.

[donald pond] 15/2/2022 08:42

I can only urge people to contact Rob Bailhache at IR, who is excellent, and suggest to him a better way of setting out figures. Though we know two big US and Canadian institutions have recently bought in, and I know others are sniffing around as a couple of them contacted me via LinkedIn after I asked a question at the last call. So I suspect information is being provided in the way US institutions want to see it rather than for U.K. PIs

[loglorry1] 15/2/2022 08:27

As usual I have no idea how they can do 30% IIR on what is now a very large claims book, suffer only 9m in claim losses, and still lose £70m after recieving fund management fees. Can anyone explain ?

[divmad] 15/2/2022 08:14

They're lawyers, not accountants, Donald.

[williamcooper104] 15/2/2022 07:58

Ditto; was equally confused when I read though the statement I expect that from those gains you have to subtract management costs, interest plus the carrying value adjustment to account for management carry All of those would then push the P&L into a loss But would have been good to see some numbers setting out that

[donald pond] 15/2/2022 07:41

Yes, all good, but I wish the figures were less opaque. Burford only realisations of 264m, gains of 128m, losses of only 9m, so how is this a net loss of 70-80? Especially as we should have management fees etc to add in for the non-Burford holdings?I wish they could present results more simply...surely gains should be realisations minus expenses minus losses and get us close to the final p&l?

[rmillaree] 15/2/2022 07:40

So the lack of booking income or profits is not key here - was the reference to December sec filings important? Does the fact they have admitted they have got more accounting treatments wrong not slightly worry you surely one would have expected them to put their house in order previously in line with prior mess ups.
Are you saying this is great update and shares should therefore rise?

[djderry] 15/2/2022 00:42

The key takeaways:Capital provision-direct new commitments and deployments for 2021 have exceeded 2019 on a Burford only basis,the last comparable year.Astonishing,really,in the midst of a pandemic.
Group-wide and Burford only commitments and deployments have come roaring back.Group-wide,they've commited $1.1 billion dollars and,of that,$841 million has been deployed.We've seen from the modelling what we can reasonably expect from the overall portfolio.It's a beautiful thing.
Of course the uninformed and those who choose to remain misinformed will highlight the larger realisations that the company triggered in the early days of the pandemic and the accounting around the accruals which have been explained ad infinitum and highlight the net loss.
Let them off.

[jockthescot75] 14/2/2022 22:47

Business update. Not sure why no RNS today?

[williamcooper104] 13/2/2022 10:48

Don't ever be a professional is the only advice I'd give To go outright directional on an index product does indeed raise the what you know that market doesn't But trying to hedge your market exposure is no bad thing; so long as you're aware of the risks behind your hedge Another option is to look at your exposure to higher beta stocks that have less specific risk - and reduce those positions BURs a tricky one in that it's high beta but of course is exposed to a high level of company/BUR specific risk/upside

[three black crows] 13/2/2022 10:22

High risk gambling in my opinion.

[donald pond] 13/2/2022 10:10

As long as you don't sign up as a professional then your losses at all spread betting companies are now limited to your deposit with them. But anyone thinking of taking any index position should ask themselves what they think they know that everyone else doesn't.

[williamcooper104] 13/2/2022 00:54

In theory you can use IG/spread betting - I've not really used it in years - it used to be that stop losses were on a "reasonable efforts" basis and I've a friend who ended up bankrupt over a stop that didn't stop when the markets melted down in 2009 - I think they do "guaranteed stop losses" now that are actually guaranteed, albeit if you trigger one you get hit with an extra point or so on the spread/cost of closing. Thats the first thing to check with spread betting - that you can limit your losses; no matter what happens with the market There's inverse ETFs as well that are better than an outright short as you know the maximum you can lose

[scubadiverr] 12/2/2022 23:12

Never used a CFD or spreadbet before but think tomorrow would be a good time to start

[scubadiverr] 12/2/2022 23:07

Can I short aim? FTSE full of miners and oil and although likely to take a hit, not to the same degree as small caps, which is my portfolio. Would I be able to use IG to hedge my portfolio? I'm not as savvy as yourself, but what would you do?

[williamcooper104] 12/2/2022 23:04

Kept my VIX futures open over the weekend, spot VIX got just below 20 only a few days ago so couldn't resist loading up Would be delighted to lose money on them though next week

[scubadiverr] 12/2/2022 22:43

I'm going to hold positions as expecting prices at opening to suffer brutal mark downs by MMs. I guess these are minor worries though when you consider the innocent life's at stake

[scubadiverr] 12/2/2022 22:37

Next week's not going to be nice, that's pretty much certain. PGM miners and recyclers like THS and SLP may also be a beneficiaries.

[syoun2] 12/2/2022 22:32

Yes indeed for a while but at the moment the price will shoot down quickly

[lazg] 12/2/2022 21:45

Ukraine will kill stock market. Buy oil.