Litigation Capital Manag... Share Discussion Threads

[greenknight1] 17/6/2021 15:54

What meeting is this please?

[blueball] 17/6/2021 15:34

Meeting postponed .

[someuwin] 17/6/2021 15:10

This is what they said in the presentation on 9th June. So more news very soon.

"More large insolvency related investments to be reported to the market very shortly"

[blueball] 17/6/2021 14:47

Meeting with Board this pm.

[dandu69] 16/6/2021 14:20

The spread may suggest a buy order being worked?

[dandu69] 16/6/2021 12:42

Bought into this yesterday and opened a position. Best wishes to all holders.

[greenknight1] 16/6/2021 11:57

I think there is a background buy being worked. They dropped the price to encourage sells and then when a couple of buys came in they quickly put the price back up. Now sales are at a premium and the price isn't dropping. Just my view.

[blueball] 15/6/2021 10:51

21 EMA is still rising which is positive.

[someuwin] 15/6/2021 09:22

Textbook stuff going on chartwise.

sp retraced to midpoint of the rising trend channel.

Solid base from which to continue the ascent.

[adamb1978] 14/6/2021 17:56

Less than half the usual volume traded today so doesnt feel like anything news driven (i.e. something leaked)

[farnesbarnes] 14/6/2021 17:48

Mateus has a) said it's a long term (min 3 year) hold and b) wouldn't normally report same day sales. So that comment is utterly wide of the mark.

Dave Ross has it. Just fluctuations.

[davr0s] 14/6/2021 16:59

All that enthusiasm last week sucked new hot money in and market trying to shake them out. Just a choppy trader - no need to go looking for other reasons imo

[robsy2] 14/6/2021 16:48

Perhaps the funky one has sold out? Or just a bit of profit taking?

[dekle] 14/6/2021 16:36

Big drop today and no comments or possible reasons. Does anyone have a clue?

[greenknight1] 11/6/2021 19:37

Not sure we need his update. We have just had an excellent investor presentation. I'd prefer to keep adding to this stock before people cotton on to where it is heading. We literally have only a few months before multiple, large investments begin to close.

[hotaimstocks] 11/6/2021 14:10

When will we get a Funky Finance update on this stock ? up over 50% from its lows now

[someuwin] 10/6/2021 20:41

From the annual report...

"As consideration for providing litigation management services and financing of litigation projects, the Group receives either a percentage of the gross proceeds of any award or settlement of the litigation, or a multiple of capital deployed, and is reimbursed for all invested capital."

So it seems they have a flexible model where their fees are either based on the amount lent or on the size of the settlement value (or perhaps a mixture of both?). This makes sense as the size of the claim is surely not directly linked to the cost of bringing the case.

So there's a real possibility that they will be in line for some very significant additional earnings when these larger multi-hundred £million cases come to a conclusion.

[greenknight1] 10/6/2021 19:13

Although saying that we know the epic for any investment is 1.35 so I'd work with that

[greenknight1] 10/6/2021 19:12

Would have been an excellent question to ask at the investor presentation. I might try emailing them

[robsy2] 10/6/2021 16:29

74Tom I think you are bang on the money there.

[74tom] 10/6/2021 15:34

Also interesting to note that Prairie disclosed the value of the funding received last July;

“BACKGROUND TO THE CLAIM

On 1 July 2020, the Company announced it had executed a Litigation Funding Agreement for A$18m (US$12.3m) with LCM Funding UK Limited (a subsidiary of Litigation Capital Management Limited (LCM)). The facility has been provided for Prairie to pursue damages claims in relation to the investment dispute between the Company and the Polish Government that has arisen out of certain measures taken by Poland in breach of the Treaties.“

And our latest stats in the half year results were;

“LCM has reached a nine and a half year period in terms of evaluating its rolling performance in which it has achieved a cumulative Return on Invested Capital (ROIC) of 135%, including losses, and in the same period has achieved a cumulative IRR of 78%“

So based on a USD12.3m investment size, we could expect that an “average”; return from the PDZ case would be USD16.6m, or 9.3% of the current market cap…

However, could it actually be significantly more lucrative than this?

I.e does anyone know whether our returns are based on a % of the case size? As if this was 5% then we could net £40m from the PDZ case alone - a profit of £29m or 23% of our market cap.

Whatever the amount is, you don’t need to be a rocket scientist to realise that we are valued at a crazy discount to ‘fair value’. Presumably because we don’t use fair value accounting, so most of the market is simply unaware of the potential of the cases on our books.

[someuwin] 10/6/2021 15:06

Carillion claim is for £250 million

Prairie Mining claim is for £800+ million

That's over £1bn of claims for just two cases LIT are funding. And they had 44 cases ongoing at last results.

[blueball] 10/6/2021 13:07

Not sure if the sells are actually buys still reckon it will finish up another 5p today.

[trotterstrading] 10/6/2021 09:26

MM's fishing for stock, I think we will see another rise this afternoon

[someuwin] 09/6/2021 14:53

From Today's presentation...

More large insolvency related investments to be reported to the market very shortly