Litigation Capital Manag... Share Discussion Threads

[iamnotanumber6] 27/9/2022 23:13

Another chunky director buy yesterday, though why did it have to be snuck out at 6pm as if they didn't want anyone to notice??

[tomps2] 27/9/2022 14:49

Litigation Capital Management (LIT) Full Year 2022 results presentation - September 2022

LCM management Patrick Moloney, CEO and Mary Gangemi, CFO, present full year 2022 results for the period ended 30th June 2022. They delivered improved underlying performance and maintained momentum across their KPIs, while driving meaningful growth in their fund management business.

Video:

Podcast:

[riverman77] 20/9/2022 09:12

Same issue as Burford, in that the litigation winnings are almost entirely swallowed up by expenses, salaries and interest payments (don't agree with all those adjustments either!). With little sign that court delays are easing I can't really see this going anywhere for the time being (unless of course they announce a big case win)

There is a particularly misleading slide in the presentation which shows the compounding effect of doubling their capital every 3 years, based on the assumption that cases make a 100% return. This fails to take into account that a huge slice of those winnings will be eaten up by operating costs, so the return on equity will be nothing like 100% implied in the slide.

[johnwig] 20/9/2022 09:05

"Steady as she goes" is my take. Things will take longer but it's a solid honest business. I don't believe that clashes with my general investment perspective. I'm definitely hanging on but may trade small amounts around the edges in the future for the fun of it. I like doing that with companies I know really well.

[hpcg] 20/9/2022 08:43

I sold out here over the summer but I am still monitoring. For those looking back in the thread I have a cash based model. This really doesn't look good for 2022 with cash proceeds having declined. This is certainly pushing out the duration working capital is in play for. The amount compares unfavourably with commitments made in 2019, so the cycle is longer than 24 months. I'm going to propose though that we are seeing 2020 delays in the results now.
Secondly they had to take on additional, though short term, debt of A$13mn (that's the cash they received, current liability line is A$14.4mn). Cash is clearly constrained as there is again no dividend, which there definitely shouldn't be when debt is libor+8. At least they know how to run the business and scaled down commitments considerably to fit their cash. The delta between cash in and out has actually closed. It does though mean another downward bump in 2024 and 2025.
I though last year would be the occasion cash movements reversed.

Outside of the companies control are interest rates; these are pertinent to the returns on offer as the DCF becomes less attractive.

I am still watching, but not likely to buy back any time soon.

[tradertrev] 20/9/2022 08:30

Not sure about those non-operating costs excluded from adjusted operating profit:
Consultancy, own litigation costs and fund admin costs amount to A$4.04m out of the A$4.78m total. Hard to see why these aren't underlying business costs, IMO.

[tomps2] 20/9/2022 07:20

Litigation Capital Management #LIT FY22 overview. 'Delivered improved underlying performance, maintained momentum across KPIs while driving meaningful growth in fund management business.'
Video: hxxps://bit.ly/LITfy22O

Management webinar today 20.9.22 at 11am join here hxxps://bit.ly/LCM_FY22_Results

[someuwin] 16/9/2022 13:31

Annual results out next time tha market opens.

[kallistos] 12/9/2022 12:27

The Bradford sage and onion's choice in this sector is not doing very well. LOL

[johnwig] 12/9/2022 12:13

Well, St Leger Day has come and gone and I haven't sold a single LIT share. Much of the price action since my last, pessimistic, posts has been negative but on the basis of very little volume.

We have the results on Sept 20. I can't help feeling that our CEO will not miss the opportunity to deliver some really good news. Obviously I have no inside knowledge. Please continue, o expert commentators, to deliver your valuable news and comments.

[purplepelmets] 11/9/2022 01:52

Hi Marco have you got a phone number? I've been trying to get in contact with you/Chloe urgently to invest some money for fruitfullness and safety. Pls give me phone number and i make transfer today

[purplepelmets] 11/9/2022 01:04

Certainly a corrolation between the toxic obnoxiousness of a bb and a share price collapse. BOTB and LIT, both utterly arrogant cesspits of bulletin boards pre-shellacking, sneering at casual observers. Serves you bloody well right.

[scubadiverr] 10/9/2022 21:39

SCAM ALERT

[mighunter] 10/9/2022 21:25

Except, in addition to malus and clawback, those share options were also subject to meeting a performance hurdle of 175p/share. It did not and would not have hit 175p within the vesting period, therefore (under the terms of the JSOP award) they would not have vested two days later in any case.

[djderry] 10/9/2022 07:24

I'm not too concerned about the WAL of cases going from 27 months to 42 as I'm a long term investor.I also like the areas they are in,taking on some of the smaller cases but with a few 'spectaculars' thrown in.No,my concern is about the dismissal of Mr.Rowles-Davies.The allegations warranted instant dismissal,yet were not material enough to affect their results.Remember,LIT bought Chancery Capital from Mr.Davies in 2018,which effectively gave them their London office and,it could be argued,the catalyst for the change in their stock listing.Then,two days,was it,before he was to receive over 4 million shares to be vested as part of that 2018 deal,he is dismissed.If I were a betting man ( instead of an investor,in among others,a leading betting company) I would wager we haven't heard the last of this.
Obviously I'm not privy to what did or did not go on but I just wonder about the process.Was Mr.Rowles-Davies given the right to respond,did he have legal representation ( one would presume so),did he have a reasonable period to respond,how was the underlying evidence gathered and presented,etc,etc.

[makinbuks] 09/9/2022 18:03

Current macro economic conditions don't make any difference to the facts of a historic dispute so what are they saying here? Applying a higher discount rate to future income? Concern that they might win but the counter party won't be able to pay?

[williamcooper104] 09/9/2022 08:00

Ice cream seller complains about hot weather

[williamcooper104] 09/9/2022 08:00

That's the company whose management said they wanted the hardest no deal brexit as the worse it was for the U.K. the better for then Glad I got out of it long ago

[spectoacc] 09/9/2022 07:04

MANO today:

"Separately, reflecting the widely reported deterioration and challenges presenting in the UK macro-economic climate, the Board has taken a more prudent view of the valuation of the Company's c.280 ongoing litigation case investments.

As a combination of both of these factors, the Company expects to announce a pre-tax loss of c.£5m in the FY23 Interim Results, the large majority of which will be due to the adjustment of unrealised revenues and unrealised profits."

[someuwin] 07/9/2022 15:21

GreenX Metals (formerly Prairie Mining) claim (Funded by LIT) against Poland proceeding well...

GreenX Metals #GRX – ECT Arbitration Statement of Reply Now Lodged

By Alan Green in GreenX Metals (GRX) on 7th September 2022.

GreenX Metals Limited (GreenX or the Company) is pleased to report that as part of the ongoing international arbitration claims (Claims) against the Republic of Poland under both the Energy Charter Treaty (ECT) and the Australia-Poland Bilateral Investment Treaty (BIT) (together the Treaties), the Company has now filed its Statement of Reply in the both the BIT and ECT arbitrations. This is the final significant filing that GreenX will make for the ECT arbitration, with the next steps being for Poland to lodge their final filing (the Rejoinder) followed by a hearing to be conducted in front of the Tribunal. GreenX is seeking compensation in the amount of £737 million (equivalent to A$1.3 billion or PLN 4.1 billion) in total across the two arbitrations Claims.

Highlights:

GreenX’s ongoing arbitration against Poland is proceeding at pace with Statements of Reply now having been submitted for both the BIT and ECT claims

Damages of £737 million (A$1.3 billion/PLN 4.1 billion) being claimed in total across the two arbitrations which include the assessed value of GreenX’s damages related to both the Jan Karski and Debiensko mines, and accrued interest related to any damages

GreenX’s legal team and counsel are now preparing for the combined hearing for both the BIT and ECT claims to be conducted in front of the Tribunal

The Company is well funded to pursue the Claims with the US$12.3 million LFA in place which is currently being drawn down to cover legal, tribunal and external expert costs as well as defined operating expenses associated with the Claims

Mr Stoikovich, Chief Executive Officer of GreenX commented: “The Claim is proceeding at pace, following the Company’s submission of its Statement of Reply in the both the BIT and ECT arbitration. As previously disclosed, the compensation being claimed by the Company is £737 million across the Claims. We are pleased to see that €190 million in damages has been recently awarded to Rockhopper Exploration plc by an ECT tribunal in their arbitration against Italy, who were found to have breached the ECT following the failure to grant Rockhopper its production concession at the Ombrina Mare oil field despite having been awarded all the required technical and environmental authorisations.”

[74tom] 07/9/2022 11:32

Testing the bottom of the downtrend this morning, if it breaks 70p then next support is ~61p...