Litigation Capital Manag... Share Discussion Threads

[speedsgh] 21/9/2021 23:21

New Simon Thompson update on the IC website...



... The shares have drifted since I upgraded my target price to 150p over the summer after my original 140p target was achieved (‘Backing litigation funding winners’, 13 July 2021). However, trading on a forward price/earnings ratio of 8 using the average of the three broker estimates, and priced on a modest price-to-book value, the risk is heavily skewed to the upside. Strong buy.

[warno01] 21/9/2021 17:33

Absolutely no reason to pay a dividend. They are right to invest profits into further investments and cases because that will create a much greater return than 2p to 3p per share.

In ten years time, yes dividends are fine when there is lower growth.
I think the results are excellent given the pandemic with some big investments ahead and a number of realisations due.

Would buy more if I could.

[makinbuks] 21/9/2021 16:16

Disappointed to see no dividend paid. Otherwise results looked OK but still a slow burner

[trotterstrading] 21/9/2021 15:47

Some chunky delayed buys showing up, it would be great to finish the day BLUE and cleared the traders:)

[dagoberia] 21/9/2021 13:55

Hi Bigalan3, for the p/e do you take earnings as 16.4 oz $? Thanks

[bigalan3] 21/9/2021 12:44

I have just read the above on the lse board. It is factually incorrect.I thank him for his concern but I think I will just keep buying with the second fund due in the not too distant future and a p/e of about 15

[hotaimstocks] 21/9/2021 12:30

RE: Nice rise on FridayToday
Well, net consolidated profit is AUD 8.9m (£4.7m) , valuation is 114m GBP
still a bit overpriced considering growth slowdown since 2018, at least not a loss like in 2017.
too much of a hopes are priced in already for many years ahead..

[trotterstrading] 21/9/2021 10:45

Tight spread, won't take much to head back up...I expected the weak hands to fold, sell up and move on tbh.. they wanted the instant gratification of fund ll launch. Once they have cleared I think we move up on more solid foundations

[adamb1978] 21/9/2021 10:30

Surprised about the share price reaction. Maybe the tone of the commentary was quite backward looking and not enough forward looking?

[transhoneyqueens] 21/9/2021 09:58

where is the divi that funky finance was taking about lol. SHORTING NOW.

[farnesbarnes] 21/9/2021 09:57

Pffft, brokers.

[dagoberia] 21/9/2021 09:53

Hi Someuwin, is this a recent broker note?

[hotaimstocks] 21/9/2021 09:39

poor results so I decided to take profit today and wait for 70p to buy back in

[jackson83] 21/9/2021 09:36

looks like no divi has caused mass panic lol ... top up at 60p later this month.

[jackson83] 21/9/2021 09:34

weak hands are banking profits after the epic rise from 50p's ... my guess is the Mateus crew know a funky finance are exiting or buying today lol.

[bigalan3] 21/9/2021 09:24

I think the p/e is only about 12 now!

[adamb1978] 21/9/2021 09:18

The bizarre thing about the 153% ROIC is that it should lead to a far far higher multiple than just 2x NAV!

[someuwin] 21/9/2021 09:00

Arden - Buy Target Price: 140p

"...Investment thesis and valuation: We continue to be of the opinion that LCM provides the cleanest and simplest equity story amongst the listed litigation funders. Its valuation remains attractive; At 2.3x FY21 P/BV with good credit and equity funding, demonstrable ROIC of 153%+ and rising deployments, we see plenty of upside in the shares. Reiterate buy. "

[adamb1978] 21/9/2021 08:56

Results look good at a first glance. It always takes a close read though given the third party interests in contracts (as well as cash and debt) which are included in the consolidated financials and the need to focus on the right figures

The second fund will bring a step change in scale for these guys, and even the management fees and performance fees for those funds will be a kick (let alone their own capital position in the fund), so I think LIT are a very solid hold on a couple year basis

As always for me, their challenge is getting people to understand the story and valuation, and hence why I think that, despite me not being an income investors, if they introduce a hefty dividend once fund 2 is raised it will attract a lot more investors to the company

[someuwin] 21/9/2021 08:55

Bought more.

[trotterstrading] 21/9/2021 08:42

Yep flushed the short term traders, should rebound soon

[sambessey] 21/9/2021 08:41

Good buying opp... will be pulling the trigger on a few shortly

[walter walcarpets] 21/9/2021 08:24

Added this morning FWIW!

[greenknight1] 21/9/2021 08:11

As you say, the short term view allows us to pick up shares at very attractive prices. The company is still executing very well despite the pandemic and continues to grow. This company will hit critical mass going forward and will be huge. I will be adding on any weakness and continue to build a massive interest in LMC.

[tomps2] 21/9/2021 08:10

Litigation Capital Management (LIT) FY21 Results overview

LCM’s CEO, Patrick Moloney gives an overview of the period ended 30th June 2021.

You can watch the video here:

Or listen to the podcast here:

There will also be a full year results webinar where Patrick Moloney, CEO, Nick Rowles-Davies, Executive Vice Chairman & Mary Gangemi, CFO will present FY21 results followed by Q&A.

Wednesday, 22 September, 9:00am

Register here: