Litigation Capital Manag... Share Discussion Threads

[djderry] 16/3/2021 17:20

Well you could always claim breach of promise and at the same time apply for litigation to finance it.

[bubloo] 16/3/2021 16:11

Patrick had assured us that second fund would be ready by December 2020. so some concerns there.

[bigbadaussiebear] 16/3/2021 14:02

dkvalue.blogspot.com/2021/03/litigation-capital-pioneering-new-high.html?m=1

Explains the buying yesterday

Very good analysis

[parob] 16/3/2021 13:45

Litigation Capital Management: Patrick Moloney, CEO, gives an overview of LIT's H1 21 results and what to expect looking forward.Video: hTTps://www.piworld.co.uk/2021/03/16/litigation-capital-management-lit-interim-results-2021-overview/Podcast: hTTps://piworld.podbean.com/e/litigation-capital-management-lit-interim-results-2021-overview/

[parob] 16/3/2021 13:42

Share price is recovering well today after the initial drop, with the volume helping to flush out any remaining sellers. Might even end the day green or blue!Could see a decent move once the share price breaks through and closes above 80p.

[bigbadaussiebear] 16/3/2021 13:38

www(dot)proactiveinvestors(dot) co(dot)uk/companies/news/943925/litigation-capital-management-present-h1-results-building-scale-and-alliances-with-global-law-firms-943925.html

Ceo interview

[bigbadaussiebear] 16/3/2021 10:42

Greenknight it actually has more do to with Covid19 because their primary third party capital for the funds comes from America and they would need to travel to America. That's why they have been considering upsizing the existing fund since the main investors have dibs on the second fund anyway.

[rampmeister] 16/3/2021 10:11

Following quick scan of results, I didn’t notice any reference to corporate portfolio funding. Have I missed something?

RM

[greenknight1] 16/3/2021 10:05

See I didn't like this comment. We have been told a second larger fund has been on the cards for a while. Now they are saying they might just upsize them current one. Seems conservative to me and hints they don't have the capital to support a new fund.

[bigbadaussiebear] 16/3/2021 09:23

Also another big hint in the presentation

To launch a second and larger third-party fund • In light of the uncertainty of global markets caused by the COVID-19 pandemic, we are considering either an upsize of the existing third-party fund or a new second fund. We are well advanced in those considerations

[bigbadaussiebear] 16/3/2021 09:18

Looks like a decent recovery on some uninformed panic early on...

[bubloo] 16/3/2021 08:48

so does that mean sell and come back later in the year

[bigbadaussiebear] 16/3/2021 08:36

The slide showing the mature portfolio ready to be harvested is the biggest hint I've seen from Patrick since investing in LIT in 2017.

Like I said expect fireworks in FY22+

[greenknight1] 16/3/2021 08:29

The results as expected have delays and there are some positives in there. My main concern is that it appears that due to the lack in resolution of cases, they have not had the cash to reinvest in new cases and support the fund - this is no doubt the reason behind the loan facility recently announced. As a result there have been much fewer cases "started" this period.

[74tom] 16/3/2021 08:28

MrWaterloo, did they know Covid-19 was going to hit when they did their 2019 forecasts?! I mean your comment has absolutely zero adjustment for context... Also it states in the RNS that nothing has been impaired, just pushed into the next period. The results may be disappointing, not sure how the same can be said of the outlook with the number of cases coming due for settlement.

[djderry] 16/3/2021 08:25

Sorry MrWaterloo,you don't understand the asset class.A common mistake.More anon.
I just watched that Proactive Investor presentation.( What a pleasant interviewer!).It took Patrick Moloney two minutes and 57 seconds to utter the word 'loss',I love it,lawyers!
One quibble I would have is that they are presenting the number of applications as indicative of progress.It really depends on the quality of those applications and I wouldn't read it as necessarily positive.I would be more interested in knowing their acceptance rate.
The cost of the credit facility ( somewhere between 8 and 13% is fair enough but they should aim for credit ratings and,like Burford,issue bonds.
Back to MrWaterloo,you can't read anything into twelve or twenty four month periods.Litigation finance does not work like that.Cases are unpredictable as to when and how they will resolve.Appeals and payment of awards are also ,on a single case basis, unpredictable.
Of course,what smoothes out returns is portfolio scale and diversification.LIT is a minnow,so you are going to have periods such as this.

[mrwaterloo] 16/3/2021 08:11

Lots of investment over the last 2 to 3 years but not much seems to be coming through to the bottom line since September 2019 which doesn’t feel well communicated.

Will be interesting to see how they explain the results, it doesn’t look like they have written off any large investments and started losing cases, otherwise there would be large write down of assets held at cost in the balance sheet. So that’s a positive.

The results and outlook are dissapointing though given the number of cases. trying not to be negative but only 3 months left in 2021 which makes the 2020 and 2021 estimates from 2019 look very dissappointing.

[leadixon] 16/3/2021 08:08

Share price going a bit crazy in early trading, will give it 30 minutes to see how it settles.

[leadixon] 16/3/2021 08:06

Totally agree, it was inline with what I expected, yes a lot of deferred cases but that’s obvious and not sure if it’s normal but further down in the detail where it says they’ve worked tax based on them grossing excess of £50m in the near future and therefore calculated using the bigger 30% tax band. A lot of positive signs overall

[adamb1978] 16/3/2021 07:51

Their own invested capital is up something like 15% in 6 months...and they have a big bulge of cases which will move past their average time to completion in the next year or so...

Per my comment above, nothing obviously wrong in those results, just some more patience required

[robsy2] 16/3/2021 07:46

Looks like we're still throwing fuel on the fire but it hasn't quite caught yet.

[bigbadaussiebear] 16/3/2021 07:45

Looks like they have deployed a lot of capital... And huge hints that they are going to harvest lots of cases soon...

If you're judging a litigation funder on 6 month time frames you're in the wrong stock...

[grannyboy] 16/3/2021 07:42

The share price rise yesterday looks suspicious!!

[adamb1978] 16/3/2021 07:35

Nothing necessarily 'bad' in those results, just nothing to light a fire under the share price IMO.

Disclosure of the portfolio by maturity and size is new isn't it? Helpful...