Manolete Partners Share Discussion Threads

[sallad3] 15/8/2019 21:41

Many thanks JakNife

[sallad3] 15/8/2019 17:55

Can anyone help ahead of the AGM?

Mr Cooklin stated on the video link that one of the two biggest cartel claims that Manolete bought was CityLink. They paid £100k and the value of trucks bought by CityLink in the period was about £100m.

He also said that Punter Southall put the value on the Manolete claim working with the Mano lawyers. What expertise do Punter Southall have? Their website doesn't seem to offer much guidance.

I can't quite figure out why the Adminstrators of CityLink would then immediately say they had no more assets to collect if their 10% was of real value and imediately dissolved the company so it is no-more. Why throw away money? If there are any proceeds then they go to Prince Charles and the Duchy of Cornwall.

[sallad3] 11/8/2019 23:17

jonwig

If you have the time do read the court paperwork on the Truck Cartel claims filed at
www.catribunal.org.uk/cases/12827718-uk-trucks-claim-limited

There seem to be all sorts of references in the June 2019 transcripts to trouble brewing at one of the funders and the other one was the one tied up in mixed ownership with the struck-out "dodgy" solicitors.

Will Manolete's ability to run the cases at court be curtailed by the declared policy of not buying ATE cover and therefore being exposed to what are seemingly very large security for costs issues.

Do look at Accounting policies on p47 and then run the numbers on the 84 open cases of which 64 are worth <£100k Also look at Note 11 on p46 of the IPO document and factor in the £4m Cartel amount stated to be last year's value.

Having a "fair value" of £5m (£1m added in the current year) in Manolete accounts and the timing issue will perhaps be further explained at the AGM as the actual costs paid were only £325k. The Fair value uplift is also stated to be based on Lawyers and not accountants opinions - do you know which lawyers?

There is a lot of competition in this area and the concept of a specialist restricting itself to the Insolvency sector makes a lot of sense, but it will need full and frank disclosures over and above the dribs and drabs that its clients file, and long run extreme returns may not be sustainable when in the glare of open and full disclosures by all parties.

[jonwig] 11/8/2019 19:15

@ sallad - thanks for detailed post, which I'll read more closely when time allows. But, is it typical? Average duration of cases to resolution is around one year. (Check out the second table of p58 of the admission document.)

[sallad3] 09/8/2019 14:23

jaws6

thanks for the link.

[williamcooper104] 09/8/2019 12:20

Didn't Begby T make some remarks about this

[jaws6] 09/8/2019 11:32

see few points in here

[jonwig] 09/8/2019 10:28

sallad - no I can't make the AGM as London is too far.

Of course, liquidator and legal fees would have to be paid anyway. My understanding is that once MANO has bought a case outright, there is no further cost to the claimant. And the claimant escapes losses.

I haven't read the FT article yet, but MANO's niche area is a lot simpler, and average resolution is only about one year.

[sallad3] 09/8/2019 10:07

jonwig

Trouble is that in Insolvency proceedings there are 3 lots with their snouts in the trough - Liquidator, Solicitors and Funders - all before the claimant sees a sou and all 3 can be on contingency and that can't be right.

The High Court does control the process and will be interesting to hear Mr. Baister's take on how he would have ruled when he was in charge of the Court process. You going to be at the AGM?

The FT has an interesting take this morning.

[jaws6] 09/8/2019 08:51

Jonwig Agree . lets wait for 2 claim to be settle news co talked in last ceo talk link, and it says more in that note above from broker.
AGM next month

[jonwig] 08/8/2019 19:35

sallad - Manolete are buying a claim from people who can't afford to pursue it themselves. So an unconditional downpayment followed by a share of winnings.

Essntially claimants will get up to 60% (your figure) or, without Manolete, nothing.

[sallad3] 08/8/2019 17:47

I'm a bit concerned that there might be a backlash against the extreme returns when the creditors realise that its quite easy for the Liquidators to arrange to be on a share of assets realised, then the solicitors are on a CFA with possibly undisclosed mega uplift, and then the funders take upto 40%. That might be well over 50% of monies recovered.

[xpertgreeny] 08/8/2019 13:15

Peel Hunt on Bloomberg: Manolete Partners# (Add from Hold, TP 450p) - Financially healthy, recommendation upgrade
Manolete Partners is in excellent financial health, with net cash (nil borowings) of probably £7.5m today, and has a completely different profile to other litigation funders. Its returns are much higher than others in the industry, it has a strong cash collection record, case duration is typically short – currently less than one year – it is in much greater control of its cases, it has a wide network of partners that bring repeat business, and it has more visibility on its growth than others as regional teams are built out. Following recent share price weakness we upgrade to Add from Hold, TP 450p.

Arden, also today, reiterate Buy. TP: 590p

[sallad3] 07/8/2019 16:25

Shame I bought in yesterday ahead of AGM and questions to ask.

[johnnylig] 07/8/2019 14:15

Galusgracchus like you I think the MANO model is different and am holding, indeed I have dipped my toe in and and added a few emphasis on few

[gaiusgracchus] 07/8/2019 09:20

As I posted on the LIT board, the MANO CEO has repeatedly emphasised that their model is not like BUR, to the extent where it seems that he is not comfortable with BUR's accounting either (my interpretation).

I'm a holder of MANO. Am tempted to top up.

[onjohn] 06/8/2019 15:41

Muddy water saying bur zero ?

Report tomorrow 8am

Will imho crush mano too

[jonwig] 03/8/2019 07:50

UK company insolvencies rose to a five-year high in the second quarter of this year, in a possible sign of Brexit-related political uncertainty weighing on businesses.

Underlying corporate insolvencies rose 2.6 per cent from the first to the second quarter of the year, and are 12 per cent higher than the same period last year, according to the Insolvency Service, a government agency. The figures relate to the second quarter, when Brexit was delayed and Boris Johnson emerged as the frontrunner to replace prime minister Theresa May.

“These latest figures are hugely concerning, highlighting the immense strain that small businesses are under,” said Martin McTague, policy and advocacy chairman for the Federation of Small Businesses.

[jonwig] 31/7/2019 11:25

No wonder the share price is on a booster today!

And the boss has said of Brexit, "the harder the better".
nice to have a hedge.

[jaws6] 31/7/2019 11:06

JULY update

[jaws6] 31/7/2019 09:52

xepert Thanks . so we wait for update then.

[xpertgreeny] 24/7/2019 14:24

Arden research out today, MANO upgraded to a buy at TP of 590p. Strong KPIs post IPO. “15.7% and 16.7% upgrade to our FY19 and FY20 PBT forecasts. PEG 0.4”