Litigation Capital Manag... Share Discussion Threads

[djderry] 16/3/2021 08:25

Sorry MrWaterloo,you don't understand the asset class.A common mistake.More anon.
I just watched that Proactive Investor presentation.( What a pleasant interviewer!).It took Patrick Moloney two minutes and 57 seconds to utter the word 'loss',I love it,lawyers!
One quibble I would have is that they are presenting the number of applications as indicative of progress.It really depends on the quality of those applications and I wouldn't read it as necessarily positive.I would be more interested in knowing their acceptance rate.
The cost of the credit facility ( somewhere between 8 and 13% is fair enough but they should aim for credit ratings and,like Burford,issue bonds.
Back to MrWaterloo,you can't read anything into twelve or twenty four month periods.Litigation finance does not work like that.Cases are unpredictable as to when and how they will resolve.Appeals and payment of awards are also ,on a single case basis, unpredictable.
Of course,what smoothes out returns is portfolio scale and diversification.LIT is a minnow,so you are going to have periods such as this.

[mrwaterloo] 16/3/2021 08:11

Lots of investment over the last 2 to 3 years but not much seems to be coming through to the bottom line since September 2019 which doesn’t feel well communicated.

Will be interesting to see how they explain the results, it doesn’t look like they have written off any large investments and started losing cases, otherwise there would be large write down of assets held at cost in the balance sheet. So that’s a positive.

The results and outlook are dissapointing though given the number of cases. trying not to be negative but only 3 months left in 2021 which makes the 2020 and 2021 estimates from 2019 look very dissappointing.

[leadixon] 16/3/2021 08:08

Share price going a bit crazy in early trading, will give it 30 minutes to see how it settles.

[leadixon] 16/3/2021 08:06

Totally agree, it was inline with what I expected, yes a lot of deferred cases but that’s obvious and not sure if it’s normal but further down in the detail where it says they’ve worked tax based on them grossing excess of £50m in the near future and therefore calculated using the bigger 30% tax band. A lot of positive signs overall

[adamb1978] 16/3/2021 07:51

Their own invested capital is up something like 15% in 6 months...and they have a big bulge of cases which will move past their average time to completion in the next year or so...

Per my comment above, nothing obviously wrong in those results, just some more patience required

[robsy2] 16/3/2021 07:46

Looks like we're still throwing fuel on the fire but it hasn't quite caught yet.

[bigbadaussiebear] 16/3/2021 07:45

Looks like they have deployed a lot of capital... And huge hints that they are going to harvest lots of cases soon...

If you're judging a litigation funder on 6 month time frames you're in the wrong stock...

[grannyboy] 16/3/2021 07:42

The share price rise yesterday looks suspicious!!

[adamb1978] 16/3/2021 07:35

Nothing necessarily 'bad' in those results, just nothing to light a fire under the share price IMO.

Disclosure of the portfolio by maturity and size is new isn't it? Helpful...

[parob] 16/3/2021 07:34

Litigation Capital Management present H1 results, building scale and alliances with global law firms07:14 Tue 16 Mar 2021Litigation Capital Management Limited's (AIM:LIT) Patrick Moloney talks to Proactive London's Katie Pilbeam after announcing their interim results for the half year ended 31 December 2020.Moloney says LCM has made significant progress in building scale across the business in the first half of the year. He alludes to their strategic alliances with global law firms strengthening as well as receiving an increased flow of quality applications.He says the $50m credit facility, which was secured in February, increases the flexibility of their capital structure, allowing them to both increase their portfolio of direct investments in addition to increasing their asset management business.hTTps://tinyurl.com/24bmr5p4

[djderry] 16/3/2021 07:23

Statutory loss of $1.4 million dollars.I suspect the market may not be too impressed.
As an investor in the asset class I'm not too worried.It's not really meaningful to judge on any one twelve month period.

[greenknight1] 15/3/2021 21:22

If any....

[74tom] 15/3/2021 19:17

Nice pre results boost, the short term key is getting through resistance at 80p, beyond this if we can break the all time high at 115p then it’ll start to attract attention. The positive this time is Miton don’t have millions of shares to sell :)

[leadixon] 15/3/2021 17:01

@greenknight - ye i was also thinking has someone got visibility of the results in some capacity and therefore bought in, lets hope that is the case and also for BigBadaussiebear for his conviction buys recently. After buying my first tranche up at 90 and then few on the way down to 50, i've just got back to profit above 70.5p average.

[bigbadaussiebear] 15/3/2021 16:02

I'm guessing covid would have caused some delays in courts so will just have to wait to see if they provide a clearer picture on the short term outlook. Medium term outlook nothing has changed..

[mrwaterloo] 15/3/2021 15:50

Is the outlook for YE June 2021 gross profit still between A$30 million and A$47 million per the 2020 results? Pro-active research have published a figure of AUD21m net profit for YE 30 June 2021. Anyone know if these numbers are still accurate? Seems very hard to find market expectations for this stock.

Not sure if Cannacord or investec have published anything?

[greenknight1] 15/3/2021 15:18

Fingers crossed someone has got wind of the results tomorrow!

[bigbadaussiebear] 15/3/2021 15:13

I expected less chatter as that last shake out was brutal... But this is crazy... Hopefully people didn't sell... Over 76p

[bigbadaussiebear] 15/3/2021 14:28

Bit quiet here? 74p

[bigbadaussiebear] 11/3/2021 04:32

Collins Street know the company very well. They were in from the original ASX ipo and have now built a very sizeable position.

Good to know that most of that Miton stock has gone to long term investors that understand the company and have been shareholders for over 5 years..

[greenknight1] 10/3/2021 19:01

Yeah, I think Collins building a stake is great. I like the way they are Australian based and will probably have their ears close to the ground in terms of how the business is performing.

[74tom] 10/3/2021 18:43

I'm not expecting anything special wrt figures. As stated, I'm looking forward to the clarity they will provide, this is the most important factor right now. Interesting to note Collins increasing their stake again...

[greenknight1] 09/3/2021 19:16

I agree. The half year figures may be flat or even down on last year due to the delay in the courts pushing cases through. Worth remembering that these are only delays and not losses. This on top of other investments coming to fruition should mean some bumper numbers looking forward after these particular results. As you say, the juicy part will be the update on third party funds.