Litigation Capital Manag... Share Discussion Threads

[hpcg] 20/12/2021 12:10

Professor X - firstly I don't have any inside knowledge of the sector itself, having never worked in litigation funding or law. For news I am subscribed to the Litigation Finance Insider newsletter, which is free, and I have my own financial model.

From the newsletter:
Litigation funder Litigation Capital Management (LCM) has dismissed its executive vice-chairman, Nick Rowles-Davies, ‘on the grounds of gross misconduct’ in relation to ‘certain expenses claims’. The news will shock the litigation funding community as Rowles-Davies is a widely respected figure. The non-practising solicitor joined LCM in December 2018 from Chancery Capital, his previous investment vehicle which he launched in May 2017. He had previously served as managing director of Burford Capital from May 2014 to August 2016 and co-founded Vannin Capital, which is now part of the Fortress Investment Group. He is the current chairman of the Commercial Litigation Association, and, since October 2021, a board director of CourtCorrect, an AI-based online dispute resolution start-up. More from Global Legal Post.


Global Legal Post link which is a bit longer: [...]

My opinion as to valuation, and the model I use is in post #606, with commentary on the last win post #635.
News on competition is neutral with players joining and leaving, one example of the latter being Affiniti Finance Limited going into administration in November. Interest rates / risk free rate of return discount also looks stable; a normalisation of rates is to be anticipated, but at this time it doesn't look like it goes much further. US Treasuries are also quite stable. Another decent size win RNS before the end of Feb 2022 would keep the year on track for my model. Omicron could cause some disruption but it looks like it burns fast so disruption in time ok accepting the fact that any delays in the award pipeline make the company less valuable at the front end.

[greenknight1] 20/12/2021 10:03

The overdone drop being brought up hard. This will be long forgotten after Xmas when we start heading back towards 200p

[williamcooper104] 20/12/2021 08:38

Yes exactly; there's a lot of posters who think the big epic short is a little twiddly winks spread bet The spread bet provider wont be hedging their position directly (as they can't really) so are just trading on the punter being a punter

[theprovosts] 20/12/2021 08:17

hey Jackson83, who were you shorting with btw? Not many brokers offering shorts anymore, be interesting to hear who you use or are just talking out of your exterior sphincter.

[buywell3] 20/12/2021 08:02

But if he is a clever sod then one would expect him to seek legal redress

Has he filed yet ?

[shanklin] 20/12/2021 07:23

Some while I asked a near neighbour, who works in litigation, what his thoughts were on LIT. He replied that he had a very low opinion of NRD and on that basis would not go anywhere near them.

His more recent take is that LIT have probably been trying to get rid of him for ages and that this gave them a 100% justifiable reason to do so.

[jackson83] 20/12/2021 02:23

opportunity to SHORT STILL .. wait foe 60p top up

[professor x] 19/12/2021 11:34

What are your thoughts on this in the medium term HPCG? I know it’s impossible to second guess, but I value your opinion.

[hpcg] 18/12/2021 21:43

It's a very simple cash business though, cash goes to those for whom funding has been agreed and similarly come back contractually in lump sums. The large bank transactions will probably fit on a few pages so the ability to hide any significant fraud is non-existent.

[hpcg] 18/12/2021 21:01

"For someone that wealthy to be fiddling expenses just doesn't add up" - you've never spent any amount of time around (some) rich people then. Every company has crooks within it and any company that say otherwise hasn't found them yet.

[williamcooper104] 18/12/2021 14:55

I had a great policy on expenses for my employees - I didn't pay them and if they cried I reminded them what they were paid

[waterfall city] 18/12/2021 14:08

For someone that wealthy to be fiddling expenses just doesn't add up.The question is how important was he to the company and how hard will it be to replace him, and has this damaged their reputation.

[williamcooper104] 18/12/2021 12:49

It can be really messy as he might have had to pay the tax on the award and won't get that back

[riverman77] 18/12/2021 12:21

Sounds like they wanted him out (for whatever reason) and this gave them the ammunition they needed.

[joe say] 18/12/2021 10:05

All there in the Remuneration Report - See Malus and Clawback

where the Remuneration Committee determines that the participant has committed a material breach of their contract of employment which would include, without limitation: where the participant has contributed to a material loss or reputational damage to the Group; the participant has materially breached any compromise agreement entered into in relation to their cessation of employment
or, where applicable, the participant has materially breached any of their fiduciary duties

There's clearly institutional and reputational pressure to apply this in full - rather than end up being a text book case for accounting and legal students

[buywell3] 18/12/2021 09:03

buywell has been seeing a lot of twin headed or Double top charts just lately

All happening in the last 12 months or so --- it does not bode well

[bigalan3] 18/12/2021 08:47

I sold at 130p and have shorted them. I am buying back at 1.3p.

[jackson83] 17/12/2021 20:35

Glad I sold out at 103p & went SHORT before results 🚩.. I did say this would crash !! 80p just the beginning.. wait for 50p top up .. plenty of new shortest starts on this .. well done to all those that took profits as most did last week / this week before Friday 🚩.. SHORT IT TO 50p lads

[jackson83] 17/12/2021 20:35

Glad I sold out at 103p & went SHORT before results 🚩.. I did say this would crash !! 80p just the beginning.. wait for 50p top up .. plenty of new shortest starts on this .. well done to all those that took profits as most did last week / this week before Friday 🚩.. SHORT IT TO 50p lads

[adae] 17/12/2021 15:38

HSBC cut BOO target from 405p to 115p today, often a good time to buy - good luck.

LIT will be a long eventually, but let's have the truth first.

[scubadiverr] 17/12/2021 15:29

I'm fairly sure LIT know some good lawyers and wouldn't have taken such action without concrete grounds for doing so. That said I've not topped up, yet. My money just went on Boo. Perhaps, I'm alone in being the madman? Till will tell

[adae] 17/12/2021 15:24

Sorry, a reference to those buying :)

[scubadiverr] 17/12/2021 15:23

Enlightenment me, why are we all nuts?

[adae] 17/12/2021 15:19

You're all nuts, we only have one side of the story, and even that is telling us very little.