Litigation Capital Manag... Share Discussion Threads

[74tom] 30/6/2021 22:31

Re. the Prairie mining case, an interesting link was shared on the LSE PDZ page from an investor holding Prairie shares on the Polish stock exchange. Well worth a read if you have some spare time;



Within it was another link to the T&C's of LIT's $12.3m investment (translate from Polish to English);



"LCM will provide up to $ 12.3 million (AUD 18 million) of contingent funding that will be reimbursed to LCM if the Claim or Settlement is successful, resulting in the recovery of any monies. If no settlement is reached or no compensation is paid, LCM is not entitled to claim any repayment. In return for the provision of financing, LCM is entitled to receive a repayment of the funds paid out and to additional remuneration in the amount of between two and five times the financing used in the first five years, depending on the time interval in which the funds were used, and then interest at fixed interest rate of 30% of the interest rate after the fifth year until payment of compensation is received."


- So LIT will receive a portion of the funds paid out (£806m, so even 5% is a huge amount!) PLUS

- Circa $24.6 and $61.5m if the case is won & PDZ draws down all the funding. I would guess that the minimum of $24.6m would be payable if the case was settled within 2 years of providing funding, 3 x if within 3 years, 4 x within 4 years & 5 x within 5 years. That seems logical.

So in summary if the case is won, assuming LIT retain 5% of the funds paid out (could easily be more), they stand to receive between £60-80m depending on how long it takes to settle.

Honestly, the market cap here is still incredibly cheap as far as I'm concerned!

[hotaimstocks] 30/6/2021 18:04

sold out today and bought into ARB/BOTB

[kop202] 30/6/2021 17:33

Well done hot air

[transhoneyqueens] 30/6/2021 16:17

we could open at 150p tomorrow ?

[hpcg] 30/6/2021 15:08

bigbadaussiebear - r.e. Miton, quite. The first step in any investment is to concern oneself with business viability, performance in absolute and relative terms, capital structure and management. Price action is then another matter. The best opportunities sometimes lie where a significant holder sells out of their position. Everyone gets discouraged by the chart, and investors, not incorrectly, question the business. The trick is back in the fundamental analysis to be able to distinguish value from value trap. That litigation funders are tricky to value is another esoteric reason why such a deep bowl has formed. I don't think it is a tautology to say, because so many investors don't see this, that large scale selling is a requirement to create a value stock.

Of course from now on I would prefer it if LIT behaved like a growth stock :)

[blueball] 30/6/2021 11:15

140p today and 145p tomorrow imo.
ath today already.

[bigbadaussiebear] 30/6/2021 10:51

Might need to send miton a cheque instead of just a post card... What a bunch of idiots selling this under 60p

[someuwin] 30/6/2021 10:20

Irrespective of results, there should be increasing newsflow about new cases being awarded and outcomes of ongoing cases. As well as the funds etc.

We know for example that there are more insolvency cases imminent...

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

[transhoneyqueens] 30/6/2021 02:14

time to take huge profits lads before its sold down.

[transhoneyqueens] 29/6/2021 23:47

we are now up more that 106% in less than 6 months

[warno01] 29/6/2021 23:38

I haven't read Jonwig's posts, however we want BUR and MANO to do well to grow the sector, its profile and investor interest. I've been in BUR and LIT for 2 years now and thankfully healthily in profit for both. However it's been challenging to hold, less during the COVID crash, more so with slow recoveries.
BUR shows a potential scale for LIT in 4-5 years time, MANO shows a different approach. I believe that this will be a major sector for years to come.
As for Jonwig, if he's spouting nonsense then let him know. Wouldn't wish bad investment on anyone though. People learn soon enough from mistakes, just not always the first time.

Back to LIT and I'm hopeful that the trend will continue to 150p. However there's a lot of potential profit taking that could come after a 100% rise in a few months. Need the extended/2nd fund news to be confirmed, otherwise a 3 month wait until the full year results.

[connor23] 29/6/2021 19:22

That's a lovely looking chart! Onwards and upwards it seems

[chuckol] 29/6/2021 17:27

Pretty amazing day again. I should feel sorry for jonwig and his little mates as mentioned above who were pushing BUR and MANO and diminishing LIT. They got it pretty well diametrically wrong and not for the first time. I bet jonwig wishes he had never got near the litigation funding sector. He has lost a shed-load of money even though he claimed to know absolutely everything about it. I know which system of accounting I favour, hee hee. jonwig doesn't really understand accounting, particularly valuation.

[transhoneyqueens] 29/6/2021 16:51

some are waiting for the dip to buy in lol ... could be above 140p tomorrow or will we see 100p again ?

[someuwin] 29/6/2021 16:16

Can get a buy quote for £6k. But not £7k.

[someuwin] 29/6/2021 13:57

"Mateus @FinanceFunky -33m

Another day, another all-time-high for Litigation Capital Management! I've just had another great conversation with management, which I hope to share with you tomorrow. 👍 stay tuned.

Financial year ends tomorrow."

[hotaimstocks] 28/6/2021 21:14

I first bought in at 62p earlier this year.

[davr0s] 28/6/2021 18:58

Random post. In your head only, and what has this remotely got to do with LIT?!

[transhoneyqueens] 28/6/2021 18:46

FULL LOCKDOWN EXPECTED SOON.

[blueball] 28/6/2021 10:56

Next stop 150p wont be long.

[muffmitz] 28/6/2021 08:53

Well someone has to say it. jonwig's malevolent sophistry didn't get him very far with LIT, nor,indeed, in the other direction, with the failing BUR and MANO. His adoring threadlice like 'scubadiverr' (we know who you really are) have also come a cropper. Tant pis.