Litigation Capital Manag... Share Discussion Threads

[luweiluwei] 05/10/2023 17:02

Hah, I had the same thought this morning johnwig.

[paradigmaus] 05/10/2023 11:10

So they'll be in the treasury then what? Are they going to distribute them to executives for their equity incentives or will the eventually cancel them?

[johnwig] 05/10/2023 08:50

Erm, 74tom, are you thinking what I'm thinking?

You don't have to answer that.

[maddox] 05/10/2023 08:44

Share Buy-Back starts today. A$10m committed (£5.23m c. 4.5% of current mkt. cap.). Opening mid-price this morning 98p. Let's see how the share price responds?

We also have positive newsflow in prospect. LIT confirmed with the results that they will continue to report case wins. Patrick Moloney indicated that we have 12 cases at a late stage of maturity - as is the norm with Lit Fin - you cannot predict when they will fully conclude.

In comparison with last year FY23, which produced fantastic results, we had one case conclude in 1H and five conclude in 2H.

Last year - some of those case wins rns reports revealed eye-catching returns which should attract some attention.

[nchanning] 05/10/2023 08:23

I reckon the buyback instructions to Cannacord will have set a pretty solid floor for the shares here . They won't be chasing it higher on big up days but they'll be soaking up any shares any time there's a seller around these levels

[someuwin] 05/10/2023 08:06

Very positive imo. I'm buying too.

[nigelmoat] 05/10/2023 07:50

Well they will be buying shares back at a much lower price than I ever expected which long term is good. Hopefully may provide some lift to current trading.

[maddox] 04/10/2023 09:51

For those subscribing to Stockopedia: Just noticed that LIT's Stock Rank has jumped - prior to the results Stockopedia had them on a Stock Rank of 33 and classed as a 'Momentum Trap' yesterday they were marked up to a 'Super Stock' on a Stock Rank of 95 - a 62 point re-ranking!

For those not familiar with Stockopedia - a 'Super Stock' is the highest Quality, Value and Momentum Stock Style and a top-decile 90-100 overall ranking.

[nchanning] 04/10/2023 09:16

Guys I wouldn't waste too much mental energy on this . The Aim all share is in the depths of despair , LIT is esoteric and hard to understand and value , and punters are selling anything that has gone up to raise cash . I'm sure we all know several other AIM shares we own where the share price performance has totally departed from business performance . LIT is too small to be shorted and has no disclosed short interest . It's just an old fashioned growling bear market at play

[williamcooper104] 03/10/2023 15:57

The market is crushing anything with any hint of a weak balance sheet It's no more complicated than that Not the time to waste valuable cash on buybacks Reinvest or pay down debt Simples

[bigalan3] 03/10/2023 12:17

Thank johnwig. I shall write as well. I also hate malpractice.

[bigalan3] 03/10/2023 10:45

I am sure it is worth highlighting this to Lit. Would the buy back help to eliminate this problem?

[greenknight1] 03/10/2023 10:41

Is it worth highlighting this to LIT for them to report?

[maddox] 02/10/2023 16:44

LIT Debt: The US$50m credit facility - they mention that they have started to pay this down already (post B/S date). The intention is to have lower cost of capital than current with a view to maintaining a diversified capital structure and looking to a Sterling Retail Bond. Nothing certain atm - but will keep us informed.

So, all in-hand.

[boozey] 02/10/2023 16:09

Agreed that this is one of the best threads I ever read on ADVFN in 20 years. Really informative so thanks to all.

The huge amount of director buying a year or so ago originally enticed me to look at the company and as MTIOC observes the Board is highly motivated to succeed.

I regarded the appointment of Jonathan Moulds as Chair as a particularly major coup for a company of LCM's size given his mighty impressive CV (worth looking at his LinkedIn profile for the detail). He would not have taken on that role if he did not see exceptional prospects for the company.

[williamcooper104] 02/10/2023 15:49

So how's that buy back going.... (Appreciate it's not likely to have happened yet but it's fully priced into the sp)

[mtioc] 02/10/2023 15:45

Thanks Jonwig - as an ex lawyer with an MBA I am about neutral on the above charge sheet (suspended sentence?)!

You raise a very interesting point re qualitative, rather than quantitative, factors. Some investors prefer to use purely on quantitative analysis and avoid management. This may work for larger companies, where the CEO has less impact on the operational result and there is a slick IR team, but for smaller companies management quality can be huge factor in the outcome. However, this can be difficult for private investors to gauge. The wide range of outcomes for litigation funders suggests management quality is important in this case (e.g. no falling foul of recent Supreme Court judgment).

I have had limited exposure to the LCM team, but recently Patrick came across very well (as always it seems). Mary Gangemi the CFO was also impressive. Jonathan Moulds, the Chair, was a positive surprise. Sometimes "big hitting" non execs can have a "helicopter" engagement with their companies. Jonathan was highly engaged as a "critical friend" and appears to have almost daily contact with the team. Collectively they seemed very competent and well-balanced. With their equity positions, they are all certainly "eating their own cooking."