Litigation Capital Manag... Share Discussion Threads

[someuwin] 11/8/2021 07:09

11 August 2021

Litigation Capital Management Limited

("LCM" or the "Company")

Successful judgment in Australian investment

Litigation Capital Management Limited (AIM:LIT), an alternative asset manager specialising in dispute financing solutions internationally , announces a successful outcome in a court proceeding in Australia, for which LCM has provided funding, where judgment has been delivered wholly in favour of the plaintiffs (funded parties). This investment forms part of LCM's Direct Investment Portfolio and is 100% funded from balance sheet.

LCM has provided funding for this dispute of approximately AUD$1.6M to date. If the judgment debt is paid promptly, LCM will generate revenue of approximately AUD$5.6M and profit of approximately AUD$4.0M from this investment. This judgment has been obtained 22 months following the commencement of funding, which is earlier than the 10-year average time to completion of 27 months.

In the event that the judgment debt is not paid promptly, and LCM continues to invest in this claim (through the enforcement of the judgment and/ or the funding of any appeal), LCM is likely to generate revenue in excess of this amount as the pricing structure of the financing arrangement is a multiple of invested capital increasing over time.

In the event that the defendant appeals, LCM is confident that the judgment entered in favour of the funded party is likely to be retained.

Patrick Moloney, Chief Executive Officer of LCM , comments: "Obtaining this early judgment is an excellent example of a high performing investment for LCM but also of the use of disputes finance by a sophisticated party to manage both capital and risk. We expect this investment to yield higher than our average 10-year returns profile both in terms of IRR and ROIC when finalised."

[davr0s] 06/8/2021 23:44

Well it could hit any price as it's a share. Let me guess a random number now...

[davr0s] 04/8/2021 19:05

Well any price is of course possible. Believe I posted when people were getting carried away with high predictions a while ago that it probably marked the top short term. And now i say the same - Low ball predictions probably mark the short term bottom. Anyhow i shall be adding on any signs of strength

[king suarez] 30/7/2021 23:32

Great find SUW, interesting..

[someuwin] 30/7/2021 20:14

Prairie Mining update today. Focussing mainly on their arbitration claims against Poland. Funded by LIT.

Nothing new that I can see. But it did make me think; LIT wouldn't have taken on this case if they didn't think there was a very high chance of getting a positive outcome.

The claim is for £806 million. LSE:PDZ is currently valued at £30m.

Therefore PDZ could be a good buy at current price, if you accept the risk and the potential long wait. Just thinking out loud.

[blueball] 29/7/2021 17:54

Bull kumo break-out today.

[bigalan3] 29/7/2021 15:46

Same again. Buys outnumber sells and no real change.
Are Milton forced to sell? Comments welcome.

[74tom] 28/7/2021 17:49

Yep, it's got to be Miton selling their remaining few million shares, it seems like we've reached a level where a buyer is happy to take between 50-200k shares each day which will clear the order eventually.

[bigalan3] 28/7/2021 15:11

Almost everyday buys outweigh sells and the price never moves. Big sell order out there?

[someuwin] 26/7/2021 16:22

Progress on another LIT case...

Compensation claim of AU$127 million lodged against Tanzania

Jul 26, 2021

[74tom] 26/7/2021 16:13

Interesting so see we have a definite buyer on L2, they’ve taken 70k shares at 1.09 since 4pm via AT trades. Each times they take out the offer the seller reloads, however it’s really positive to see them getting taken out. Suspect we snap back to the 120’s once they are clear.

[blueball] 23/7/2021 17:35

50k buy at close.

[74tom] 23/7/2021 17:26

Yes I went looking for updated info on the Miton Value Opportunities fund 3 / The Diverse Income Trust, where LIT is held, however they haven't posted their accounts to 30th May yet. At of Feb 11th the Diverse Income trust held 3,456,573 shares which means that the value opportunities fund had to hold the remainder (2,045,077) to total 5,501,650.

Both of these amounts are large enough to put the share price in reverse if being sold at best in the market, as opposed to another II. It's pleasing to see 600k volume today and there share price retaining the 1.08 support, hopefully not too much further to go until they are gone forever.

[johnwig] 23/7/2021 15:12

I just like literary tropes. I wasn't really bemoaning Miton's actions. In fact it should give all investors a bit of relief if it is Miton's sales that have caused the recent falls because Miton's holdings are finite! I can see no just impediment to shareholders being informed of the quantum when it is appropriate.

[greenknight1] 23/7/2021 14:08

Well, you call Miton a foe but on the contrary I think they have provided us PIs with an exceptional opportunity to build significant positions in a stock that would otherwise be trading much much higher.

[johnwig] 23/7/2021 11:08

Here's the best I can do, as of March 3 2021, officially:

Premier Miton Group plc 5,501,650 4.76%

So, it could well be Miton selling more. I can't help feeling, though, that someone must have more recent info but I don't know how to get it. Surely one of our brilliant posters here can ferret it out.

It really does matter!

P.S. I love the phrase "perennial foe". It certainly feels like that.

[muffmitz] 23/7/2021 10:30

As ever thank you for your contribution 74tom. My recollection is that there was good information that Miton owned considerably less than 5.5 million shares but trustworthy figures seem inordinately difficult to gather. The present situation, though, does seem remarkably similar to the Miton overhang clearance of a few months ago. Either way it's been a strange incomprehensible way to behave...

One thing for certain though is that the dodgy 'jonwig's' current figure of 14 million+ on his troll thread is shamefully wrong and clearly meant to deceive.

[74tom] 23/7/2021 09:54

I've come to the conclusion that the recent share price weakness has to be down to Miton selling the remainder of their 5.5m shares. I thought they had sold out completely last December, but the holding notification never arrived.

The pattern is exactly the same as last summer, a PI driven rise followed by a relentless AT attack. There have been countless buys in the 110-120 region over the past week which have been met by an iceburg sell which just keeps reloading.

We are so close to being clear of what seems to be a perennial foe.

[robsy2] 22/7/2021 16:49

Exactly. My understanding is that they are using the funds they have and once used they plan to get a second tranche and will feed that into the cases as they need it.

[greenknight1] 22/7/2021 12:31

The recent slides show the fund is to be 86% committed (pending final due diligence). This only leaves $21m - not a lot. Work is ongoing for the capital raising of the new $300m fund which is likely being timed to close as the final 21m is committed for the first fund. Seems like a slick transition to me.