Litigation Capital Manag... Share Discussion Threads

[sambessey] 16/2/2022 07:44

Chart looking strong.

[blueball] 15/2/2022 14:48

Nice buying today.

[74tom] 15/2/2022 13:57

Yes it could definitely be good ol' Miton however they haven't RNS'd to be below 3% yet! I only suggested the seller theory because of what's happened with NRD... who knows, it appears the buyers are winning at present though & long may that last.

[johnwig] 15/2/2022 13:42

Thanks for that 74tom. It explains clearly much of the share action here over the last few months. I might quibble that it is a 'vengeful seller'. Perhaps more likely it is one of our insalubrious financial institutions pursuing some abstruse agenda which nearly always disadvantages the Private Investor. But, because many are not as clever as they think, this will hopefully blow up in THEIR faces/faeces!

[74tom] 15/2/2022 13:02

@Kallistos, yes it would in the case of LIT. There has been a game of cat & mouse going on here for months. Ever since the breakout to 136p last July someone has been layering the sell side order book each day, if buyers don't push back then they progressively lower their offers steadily driving down the share price. This happened on the recent push back down from 103p to 87p post the first lot of director buys, however since the second round of buys they have been overpowered by significant buying pressure. I suspect it's a vengeful seller that held 500k or so shares and wanted to delay progress... of course over the longer term the market weighing machine will win - helped enormously by directors & II's like Collins St. buying up loose shares & the company performing to or ahead of 'expectations'.

[kallistos] 15/2/2022 12:46

It's beginning to look as if more people are beginning to understand the great potential of this share. However I have been baffled by recent share movements down for no apparent reason apart from chronic lack of volume. Would seeing L2 help me understand better what's going on?

[someuwin] 15/2/2022 12:34

29/12/21 - Chairman buys 725,000 shares (£647,000)

29/12/21 - CEO buys 50,000 shares (£46,000)

1/2/22 - CFO buys 27,500 shares (£25,000)

7/2/22 - Chairman buys 600,000 shares (£544,000)

[74tom] 15/2/2022 10:07

Sellers on L2 are coming under severe pressure at last, they are desperate to keep the share price under the psychological £1 barrier & the top of the downtrend channel resistance at £1.03.

Once they are blown away by results I see little reason why we won’t retest the £1.40 level from last summer - Covid is in retreat, we have the second fund signed and PM is now in London. Margin of safety can’t have ever been higher here?

[greenknight1] 14/2/2022 21:38

What is also relevant in todays news is confirmation that Pat is has now completed his relocation to London.

[greenknight1] 14/2/2022 07:33

Thought so!

[scubadiverr] 09/2/2022 12:08

There's a nice report on litigation funding by Andrew Carreon of Emeth Value Capital. It's focus is Burford but there is considerable read across to LIT. Well worth a read imo if interested in this asset class. https://emethvaluecapital.com/_files/ugd/b2ee4c_d8d3433827ac482ea4648323a2e6ecdf.pdf

[nchanning] 07/2/2022 14:25

You could say there was some pressure on the board to show some support for the stock with the first purchases after the corporate shenanigans. But a 2nd purchase here can only be for 1 reason - to make some cheddar

[adamb1978] 07/2/2022 11:56

Moulds is quite wealthy - the more significant purchase is that by the CFO in my view. Her first shareholding, she's relatively young and her profile/job etc would tend to be more risk averse than an senior ex-banker

I do think this has huge upside from here, but the company could do better in helping guide the market on the future. I feel that LIT only get credit for historics (or actual book value) rather than lot of more easy-to-understand companies being priced on the future

[hpcg] 07/2/2022 11:26

Mr Moulds is not holding back. He either has more money than sense or he knows the business is moving in a positive direction. Not only that but he is genuinely absorbing available stock.

[74tom] 07/2/2022 11:02

Very impressive support...

[greenknight1] 07/2/2022 10:45

I have a feeling that interims will be great. They are expected the second week of March and all the directors are squeezing in buys before the close period.

[cf456] 07/2/2022 10:35

Chunky director buy…

[greenknight1] 07/2/2022 09:44

And the large director purchases at Xmas....

[adamb1978] 07/2/2022 09:00

A month or so til the interims. Hopefully the CFO purchase suggests there's nothing untoward coming up and they can bring some stability to the share price

[farnesbarnes] 04/2/2022 13:16

The last line amuses me:

“We believe this claim is without merit and we will robustly defend the case. Responsibility for the failure of Carillion lies solely with the company’s board and management, who set the strategy and ran the business.”

Responsibility for the failure is NOT solely with the company's board. KPMG did the bloody audit 3 times.

If it were binary, why did KPMG charge a fee? What did they do for the fee?

[farnesbarnes] 04/2/2022 12:38

Old I know, but in yesterdays CE

hxxps://www.constructionenquirer.com/2022/02/03/kpmg-being-sued-for-1-3bn-over-carillion-audit/

KPMG is being sued for £1.3bn by the Official Receiver over its role as auditor to collapsed contractor Carillion.

It is alleged that KPMG failed in its duties as auditor to spot misstatements in the group’s accounts.

Carillion went under in January 2018 owing £7bn including around £2bn to 30,000 suppliers and subcontractors.

The action against KPMG will claim damages of more than £1bn on behalf of creditors – representing the sums Carillion paid out in dividends, advisory fees and losses incurred as the group continued to trade.

Included in the claim are dividends of £210m, professional fees of £31m and losses of more than £1bn incurred as the group continued to trade.

In March 2017, the group reported underlying profit from operations of £236m for the 2016 financial year. But in July and September 2017, Carillion announced total write-downs of £1.045bn, a sum equivalent to the previous seven years’ profits combined.

The write-downs exceeded the market capitalisation of Carillion and were among the largest in UK corporate history.

The focus of the negligence claim is on the value of major long-term construction contracts, which were not properly accounted for in any of the 2014, 2015 or 2016 audits, resulting in misstatements in excess of £800m within Carillion’s financial statements.

These include construction projects valued in the tens or hundreds of millions of pounds, including the Royal Liverpool Hospital, the Southmead Hospital redevelopment, the Aberdeen ring road, significant works at Gatwick and Stansted Airports, and other major projects in the UK and overseas.

Despite knowing that there were problems in relation to these contracts and identifying the audit of construction contracts as a significant risk, KPMG accepted management explanations for inflated revenue and understated cost positions.

A spokesperson for the Official Receiver said: “Following extensive investigations looking into the causes of Carillion’s liquidation, the Official Receiver has submitted a claim to the High Court concerning KPMG’s role as auditor for the company’s accounts.

“The Official Receiver has taken this action in the interests of creditors who lost substantially in the liquidation. The decision is based on legal advice, which is that KPMG is answerable to Carillion’s creditors for a portion of their losses.”

A KPMG UK spokesperson said: “We believe this claim is without merit and we will robustly defend the case. Responsibility for the failure of Carillion lies solely with the company’s board and management, who set the strategy and ran the business.”

[greenknight1] 03/2/2022 07:27

The definition of a close period was amended to be the 30 days prior to the release of financial results for AIM companies.

[l2b] 03/2/2022 01:49

Good to see director buying.

Just wondering what is the black-out period for insiders buying shares?

I would imagine HY numbers almost finalised and known to CFO.

[greenknight1] 01/2/2022 23:04

I expect Mary Gangemi will be announced as a director soon. She has replaced NRD on all LCM's subsidiaries in England as of 14th Jan.

[greenknight1] 01/2/2022 13:43

Everyone inside the company is loading up - looking forward to the next few months!