Manolete Partners Share Discussion Threads

[dr biotech] 08/2/2021 17:07

Recently IPO'd companies that fail to live up to their billings seem to take a long time to regain market confidence. FWIW I sold out after the RNS at a loss, I will look for better opportunities elsewhere.

For me this was a story about accumulation - profits from one set of cases leading to more cases and a general expansion of the business. Its not unlike the R rate for covid. In this case anything above 1 is welcome and the business should have grown rapidly. However it now appears that R is less than 1 - not enough new cases to sustain the growth, may be some idle time, less growth and cases and it will be much harder to rebuild the momentum

Fortunately it was only ever a small holding for me so I can take the hit and move on. Had I held more I'd probably be hoping it will recover. Perhaps over 12-18 months, but I don't think it will over the next 6-12. But what do I know, as I bought this guff in the first place.

[jonwig] 08/2/2021 17:00

Sunak - possible extension of covid loan period:

Chancellor Rishi Sunak will on Monday offer relief to the 1.4m UK small businesses that borrowed money through the state-backed bounce back loan scheme by letting them repay over a much longer timescale in an effort to prevent widespread company failures.[FT]
So no spring waterfall.
Zombie companies stalk the land.
Hiding place for criminals?

The measures to make company directors personally liable for accounting errors only affects quoted companies I believe. Probably irrelevant to the vast majority of potential clients.

[riverman77] 08/2/2021 16:55

I would be surprised if they needed a raise as they have 30 odd million of existing cases, some of which should be settling as we speak (case duration is 11 months on average and many of their cases are more than 6 months old). That said I can't see any recovery here for some time - you're probably looking at least 6 month until insolvencies pick up and then another 6 months for them to start buying cases and generating returns from them. So potentially this time next year, although I think it could do very well beyond that for patient investors. In the meantime management have completely killed any goodwill for this share by their poor handling of the situation.

[r2oo] 08/2/2021 16:40

NopeLots of sells today and a big one of 116,000.It's so illiquid expect high volatility. Just hold on an look at it again in a year or two, or preferably ten. I think you'll be pleasantly surprised.

[gaiusgracchus] 08/2/2021 16:39

Fundraise incoming? (I have no inside knowledge, obviously)

[lazg] 08/2/2021 16:04

Is anyone aware of news?

[inthemix] 08/2/2021 15:45

Surely can't go any lower here, still sticking with my average of 215 an I'm not averaging down anymore.

[djb3] 05/2/2021 09:29

In myself now - just don't look at them for a few months, then once end of furlough kicks in this should rise.

[riverman77] 03/2/2021 10:48

Good summary JimTech. I agree this will do very well long term but can't see any meaningful recovery any time soon, probably another 6 months at earliest. I know from Burford that it can take a very long time to recover once you've lost trust of investors, which I think is the case here due to management not flagging the very sharp drop in earnings (compounded by idiotic decision to release the update at 3pm - I'm sure if they released at 7am it would have fallen maybe 10-15% rather than over 30% ).

[scubadiverr] 03/2/2021 09:48

ShareSoc Webinar with Manolete Partners PLC (MANO) 17 February 2021 @ 5pm. Register with ShareSoc for free to view

[bogman1] 03/2/2021 09:15

6 months from now I can see this doubling. Easy

[jimtech] 03/2/2021 07:26

I bought in on Monday for a few reasons. This is my take...
I think the previous high rating anticipated that COVID-19 related new business would come sooner than it will do.
Cash flow has always been a problem and it will continue to be 'lumpy'. That's just the nature of the business.
The institutions that sold made good returns on their IPO investments. They bought in requiring dividends and this would have been a drain on Manolete resources.
Dividends may well now be reviewed to ease cashflow.
I see Mithaq Capital as being more patient though. It is also hugely significant as they are shareholders in Burford Capital - as has previously been pointed out.
So, Mithaq Capital know the sector. Insolvency litigation is an area where Burford no longer has an offering and Manolete is the UK market leader. Consequently, a merger would make sense at some point.
Unless an offer is made I don't see the Manolete share price moving up for a while though. This slow down has spooked investors but it will pick up again when the UK government cease financial support of companies.
Manolete Management have said that this slow-down was flagged when they released their H1 results, however, this was not clear and will have created a bit of distrust amongst investors.
Consequently, it may take time to climb up again.
Just my thoughts as a private investor. DYOR.

[benbendan] 02/2/2021 15:59

Why is the share price stuck?

[jsforum] 01/2/2021 20:14

It's his beer money

[schroedar] 01/2/2021 15:40

That is truly pathetic. I hope Cooklin is proud of his board

[sirrux] 01/2/2021 12:39

Ooops, did the CFO forget to type an extra 0?

[tradertrev] 01/2/2021 09:01

CFO spends all his pocket-money on MANO shares! The local sweet shop will be very disappointed.

[amt] 01/2/2021 07:57

Or he hasn't got any spare cash. If he thought it too risky he wouldn't have bought any.

[74tom] 01/2/2021 07:36

500 shares for the CFO - clearly he either thinks it’s expensive or risky at current levels?

[r2oo] 29/1/2021 09:40

Two ways to see this:Directors trying to bolster the share price from falling further by showing their faith in company.They are confident that possible good news released in the future will raise the stock price significantly.Directors, no matter how much they earn don't lay out 10k for stock of their personal wealth lightly

[amt] 29/1/2021 09:07

Yes they can spot a bargain.

[r2oo] 29/1/2021 08:36

Meant £10k

[r2oo] 29/1/2021 08:35

Three directors buying £10k each of shares this morning!

[riverman77] 28/1/2021 20:07

Possibly, but back then MANO was really tiny and wouldn't have moved the needle for BUR. They now have a lot more cases and would now make a useful contribution to earnings.