Litigation Capital Manag... Share Discussion Threads

[makinbuks] 22/2/2021 11:51

Pretty expensive deal it seems to me. I don't understand "a LIBOR based based rate of 8%", is that LIBOR +8 or LIBOR + something = 8 currently or is it a fixed 8%? Similarly if the bonus has a cap at 13% for everything does that include LIBOR movement?

Its spun as being all about growth, but the market reaction suggests its maybe more to do with meeting existing obligations. Worrying

[speny] 22/2/2021 11:29

This is a long term hold for me, as see vast potential upside from current levels. Im debating whether to add before results on 16th March, but may wait, as this is already one of my largest holdings. However if the share price drops a closer to 60p, I'll be very tempted to add more.

[adamb1978] 22/2/2021 11:19

I'm not concerned about the lack of upward movement in the share price. The new fund structure will help them increase returns to shareholders, assuming they deliver returns even vaguely in the direction of previous returns.

Sometimes with small-caps it can take a while for value to become apparent, partly because whilst certain investors will do the digging etc to find areas of 'cheapness', for a large number of others, as well as market commentators, they rely on screens to flag things up.

I'm confident that in a year or two the share price will be materially higher here, and if the price slips into the 50s towards my in-price then I'll increase my already relatively-full position

[bigbadaussiebear] 22/2/2021 11:09

Half the business is in Australia and we have no community transmission of Covid19 here and life is as it was more or less.

I'm pretty sure the UK courts are working with a few delays.. OBL on the ASX has pushed a few cases due to conclude in FY21 into FY22 but that's hardly an issue for long term investors.

I wish I could buy this stock on margin because I would if I could...

When I first invested in 2017 they were a small company with $16m AUD in cash and investments at cost with a $35m AUD market cap.

This year they will be managing $300m-400m in assets including about $80m of their own capital.

Best of all they won't be diluting shareholders in the short to medium term as they scale the business

[bigbadaussiebear] 22/2/2021 10:55

Oh a short term trader.. Never mind... No idea why I was engaging in discourse with someone who will never have the gonads to hold for 500% to 1000% gains in 5 to 10 years time

[dekle] 22/2/2021 10:46

Hope you are right, managed to sell about 3rd of my holding last week but now in a bit of a loss. I will buy back when if the price drops further to average down. However, until the courts are open fully and have caught up I guess it's a waiting game.

[robsy2] 22/2/2021 10:44

Hmmh
No reaction here? Either they are tight lipped and careful because they are just getting on with making money and are solid or they are struggling a bit.The sector seems a bit troubled. I have a feeling that maybe business throughput is slowing up. Maybe courts are slowing down hearings,the travel ban must be a drag on activity. having operations in different and distant jurisdictions must be more difficult . The company seems quite tight lipped to me.I have a sizeable holding here and am patient but feel like we need some good news here. Let's see what the results reveal.

[bigbadaussiebear] 22/2/2021 10:42

Market is wrong. I bought more. And when the ASX opens tomorrow I will be closing a position to add more here.

You do the math on 35% performance fees for the $150m Usd they have under management.. And any potential upsizing of the assets under management... Which is the reason for this facility.

If the market was right I wouldn't be making any money as a value investor... But it often is and I'm there buying...

[dekle] 22/2/2021 10:38

So far the market doesn't seem to see as positive

[bigbadaussiebear] 22/2/2021 10:31

Who cares if a bond would have been better this company is lining up the ducks for huge profits.. This $50m will give them leverage and they will earn their own returns on it as a balance sheet investment.

That $50m will earn them 100%+ IRR in 3-4 years and give them the chance to leverage another $200m in a fund that they will earn 35% performance fees on.

[dekle] 22/2/2021 10:00

Would a bond have been better at 8%?

[bigbadaussiebear] 22/2/2021 09:55

$250m USD fund which they will get a 35% return on + a return on their co-fund share...

It's all about leverage..

This $50m will earn them a bucket load in 3-4 years

[bigbadaussiebear] 22/2/2021 09:53

You guys don't realise the $50m USD will allow them to co-fund a $250m USD second fund at 20%

So it allows them to leverage their asset management business...

[mrwaterloo] 22/2/2021 09:47

I agree management must view our and their equity as more expensive than 13% p.a return

[hpcg] 22/2/2021 09:20

8% is cheap for a company the size of LIT. Don't forget beyond that to the 13% cap is a profit share - I hope we hit it!

[jgh03] 22/2/2021 09:14

A rate of 8% to 13% strikes me as expensive. Couldn't a retail bond have offered a much lower but still very attractive rate ?

[bigbadaussiebear] 22/2/2021 07:45

Nice $50m USD credit facility rules out any dilution through an equity raise for atleast another couple years. Will give LIT the balance sheet capital to co-invest in their new funds they are planning and grow their asset management business.

[bigbadaussiebear] 19/2/2021 08:52

Good to see Collins Street fund still buying.. One of the best Australian microcap funds

[hpcg] 17/2/2021 12:20

Conventionally one gets a blow off bottom when a big seller clears their last at an 'I don't care' price. Right now it the share price is much higher than most of their sales so I'm sure they'll push to clear.

[bigbadaussiebear] 17/2/2021 09:34

1m shares cleaned up yesterday... Prob only 2m left...

[bigbadaussiebear] 16/2/2021 11:31

Volume picking up here... Hopefully Miton are cleared soon... Prob only have about 3m shares or so to go...

[johnwig] 15/2/2021 08:54

It's good news though. I've amended the heading. I wonder how long it will take the shifty jonwig to amend on 'his' thread. He's still got Miton as holding 12.8%! Generally he only truths up on his scores of thread headings when it suits his malevolent troll book.

[bigbadaussiebear] 15/2/2021 08:00

So Miton are now officially below 3%

Good riddance... Maybe another month or two and then there won't be a constant overhand dragging the share price...

[bigbadaussiebear] 11/2/2021 15:47

Oh just fk off already...

I added more...

[humphbumph] 11/2/2021 12:25

Right so far Harijan.