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| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| Litigation Capital Management Limited | LIT | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
|
|
|---|---|---|---|---|
| 1.00 | 0.88% | 115.00 | 16:35:17 |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| 115.50 | 114.50 | 116.50 | 115.00 | 114.00 |
| Industry Sector |
|---|
| GENERAL FINANCIAL |
| Top Posts |
|---|
Posted at 08/10/2024 22:25 by gallamar Remember the big one is queensland power class action. Rumoured to be 1bn aud claim in press. 100pct funded by us. Pretty sure we get 20 to 25pct.On investor call I asked about it. Case is heard, judgment in 2 to 11 months |
Posted at 08/10/2024 15:58 by mtioc CEO said potential to be most successful LCM investment ever.It would be really interesting to know fair value of this matter at last reporting date. Although an extreme example, it should bring home the point to institutions that there is significant unrecognised value in the portfolio with real potential for NAV uplifts at matter conclusiond. Irony is that smart US endowment and pension fund investors get it and backed LCM over a multi fund cycle. UK listed small cap institutional investors don’t and bleat about dividends. |
Posted at 08/10/2024 08:38 by johnwig Welcome back, 74tom. It's good to have your expert views. I understand why you sloped off because the last few months have seen some really inexplicable manipulations here which have baffled this private investor. Don't disappear again until this hits 2 quid, OK?Thanks to the brave few who continued to try to explain the unexplainable in the meantime! |
Posted at 08/10/2024 08:03 by nchanning Fund 1 is now all but guaranteed to be considered a resounding success by investors , bodes very well for the chances of raising an even larger Fund 3 on the same very favourable terms for LIT |
Posted at 17/9/2024 10:58 by elsa7878 Very impressive presentation. Suggest any investor or potential one should take a look. |
Posted at 17/9/2024 10:55 by pigeonfeeder Disappointed they have declared another dividend - would much prefer they pay down debt, or do a share buyback. 30% Aussie W/H tax makes it unattractive for UK investors, especially if held in an ISA or SIPP. |
Posted at 14/9/2024 09:26 by mtioc Always difficult to work out what drives short term share price movements - I gave up a long time ago. The prospect of losing IHT relief on AIM stocks in the Budget possibly hangs over AIM.LCM is a complex story of a growing balance sheet with lumpy profits and cash. In addition to the points mentioned above, the company's inability to attract a new institutional investor over the last 12 months or so has been disappointing and one of the reasons for a lacklustre share price |
Posted at 15/8/2024 12:21 by williamcooper104 Lawsuit financing: investors smell profit in classic hold-your-nose stocks https://on.ft.com/4c |
Posted at 03/4/2024 09:26 by mtioc Makinbuks/GallamarThanks. Agree, nub is FV and associated risks. I also question LCM's ability to deploy more capital at same historical returns. My forecasts are for lower returns. In fund II LCM currently deploying at $8m/commitment. At that level will have over 40 commitments versus 20 in fund I. They will need to do something different (unit size, case type, geography etc..). That said, as an investor you need to value the business. In my case, if I believe it is conservatively valued at £2.50 per share, but due to risk of error, FV risk or uncertainty, I may choose a 40% margin of safety, which would suggest buying up to £1.50. My point is the company could be more helpful re investors reaching those conclusions. [G. not sure I follow your valuation approach.] Note win rate point, but if there are proper forecasts, that is simply a variable that could be flexed (e.g. low, med and high cases). Not sure LCM returns are as reliant on others for a few cases. See p9 of latest presentation for return distributions. CEO trying to steer investors away from case news. With 53 investments and growing, it is a better appreciation of overall portfolio that will drive value rather than news flow. On capital allocation, the amounts are small and the company is clear they are "market signals" rather than genuine capital allocation decisions. That said, if you have the internal investment opportunities that LCM does, you should be clear why you are preferring others such as buying your own shares or dividends. Again, I question the lack of explanation rather than the decision. |
Posted at 21/9/2023 12:55 by someuwin A robust outlook makes this legal stock a buyA cash-rich provider of litigation financing has reported record results and could deliver another year of growth September 19, 2023 By Simon Thompson * Net profit up 145 per cent to record A$21.8mn (£11.3mn) * EPS of 29.5¢ (15.4p) * NAV up 27 per cent to A$124.3mn * 2.25p a share final dividend declared Litigation Capital Management (LIT:117p), a provider of litigation financing, has reported record results buoyed by settlements from its directly held portfolio as well as bumper fees earned from third-party funds. The performance of both the group and the fund interests made for a good read. The third-party funds delivered A$70.2mn (£36.5mn) of post-tax profit and a hefty $24.6mn of performance fees for LCM, which receives 25 per cent of profit on each fund investment over a soft hurdle rate of 8 per cent. The group also earns an outperformance return fee of 35 per cent over an internal rate of return (IRR) of 20 per cent, so providing an attractive income stream to complement realisations from its own directly held portfolio. Over the past three years, LCM has delivered a cumulative return on invested capital (RoIC) of 208 per cent and internal rate of return (IRR) of 76 per cent, a key reason why outside investors want a slice of the action. Earlier this year, the group’s second Global Alternative Returns Fund (GARF) raised A$291mn of commitments. The outlook for deployment of the capital is increasingly positive. Strong trading outlook Chief executive Patrick Maloney predicts a significant rise in the number of appointments of external administrators and liquidators in insolvency, which will translate into increased litigation funding applications in the future. That is of particular benefit to LCM given its long history of funding disputes arising from insolvency and restructuring. Maloney also highlights a tightening and contraction of the competitive landscape in the litigation finance industry across several markets, including the UK, US and Canada. Having built LCM's expertise and capacity in the London market, as well as having access to capital through its funds management business, the well-funded group is well-placed to capitalise on tighter industry conditions. In addition, Maloney pointed out that LCM is “seeing more opportunities in the market and expects to materially achieve commitments in the second fund”. This will position LCM well for launching its third fund, aiming to exploit the high-quality investment opportunities that underpin generations of value and cash to both fund investors and LCM’s shareholders. Furthermore, as the group continues to grow, the operational leverage of the business means that it should deliver even greater profitability and cash generation given that higher activity levels will not need to be matched with proportionate increases in overall costs. It’s a positive narrative and one well-supported by a raft of successful case settlements in the past year that led to bumper profit for both third-party fund investors and LCM shareholders. It also explains why the board has announced a A$10mn share buyback programme alongside a 2.25p-a-share final dividend, and is planning a fixed-income investor roadshow to attract investors for a London-listed sterling retail bond to take advantage of investment opportunities. Re-rating set to continue The news has been well-received with LCM’s share price hitting a 12-month high around 121p post results, up from 87p when I last suggested buying over the summer (‘Litigation funders LCM and RBG digest court ruling, 27 July 2023). House broker Investec is working on new forecasts to take into account the group’s transition to IFRS-9 fair-value accounting, but analysts had previously forecast a 66 per cent rise in adjusted pre-tax profit of A$47.7mn. Trading on a 12-month trailing price/earnings (PE) ratio of 7.5, offering a 2 per cent dividend yield and an delivering eye-catching return on invested capital, the shares remain a buy." |
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