Firering Strategic Minerals: From explorer to producer. Watch the video here.
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well spotted Wobble. Thanks
Yes it was one of our cases. See point No3 on page 1.
https://www.williamroberts.com.au/ArticleDocuments/338/Notice%20of%20Proposed%20Amendments.pdf.aspx
GLA
Is this one of our cases?
Well I stand corrected. From an open around 16% down it has pulled much of this back through the day.
It has been drifting down over the week (as many have) but good to see a quick pullback.
For what it’s worth Forensic505 was bearish here years ago when then share price was ~60p, from memory they compared LIT to MANO which they claimed was a far better investment. So I wouldn’t give any credence to ‘loss of faith’ today, I very much doubt whether they hold shares in the first place.
I agree with a earlier poster, in this current climate any given day can drag LC down and along with the general markets, it's a very changeable and complex time for investors and investing, confusing comes to mind very easily.
Though long term this company and along with Burford capital and others should really thrive in this current climate, business wise and earnings wise that is, the share price should really at some stage reflect those increasing earnings and recessionary strengths, litigation capital seems a excellent well run company with tremendous potential, I myself am not a holder as I've put my chips on Burford capital and it's nearing big court case conclusion and potential, two excellent companies worth investing in.
GLA and please DYOR before buying.
Don't forget they lend and get returns defined by time not a fixed amount. So a longer case means greater returns. It does not mean you've got to wait 4 years for a return previously had in 2.7 years.
It just means the longer and more complex cases are likely going to be lumpy cashflow wise.
I don't think the returns on our lending over the long run change at all.
Forensic
Interesting view as you sound like someone who has held much longer than I have.
Over time I take it you will have had the opportunity to bank profits, so hopefully not a loss making business for you.
I’d agree the company isn’t moving as fast as I would hope and closing the funds has stretched somewhat. Is this covid related or is that an excuse?
Is it because as they grow larger and become more recognisable in the industry the cases they are taking on are larger and more complex?
Possibly a combination of the two?
Last results did show an increase across all the metrics so I think this still can be a good compounding company, albeit at a slower rate.
Lost faith here. For years I have watched the LIT CEO telling us the cases resolve in two years. Now he says 4 years. Reminds me of a certain (nearly former) Prime Minister ! Taken my medicine today. GLA.
Seems like a massive overreaction and I suspect by those who were hoping for this to move back towards the ATH of £1.40 ish, loosing patience, or possibly those hoping for the start of a divvy payment reallocating.
A year ago I would have expected this to bounce back quickly, not so sure in the current environment, despite it being a solid business with good growth.
I've been a holder for about 18 months and even with this morning's RNS reaction think that it'll show steady growth in future . The RNS itself showing 25% annual growth? 25% growth compounded for a few years will do me fine.
Surprising drop in the share price, everything looks positive other than the increase in the duration length of the more complex cases , that's normal and understandable with all the court delays, no real justification for that big drop, though I'd say it will be a temporary drop. Excellent growth prospects for this and other litigation companies, namely Burford capital,
Thoughts everyone?
slow on the news front of late, but some snippets of activity that the company is undertaking:
https://www.lcmfinance.com/debtor-management-made-easy/?cn-reloaded=1
https://www.lawyersweekly.com.au/wig-chamber/34666-this-is-a-significant-judgment-a-long-time-in-the-making
This could be high profile given the law firm and the fact it’s Google.
This case was in the news October 21 and it seems has taken till now for Mischon de Reya to file it.
Makes you wonder if director buys are linked?
Google won a litigation claim in the UK last year (totally different issue) which was represented by Mischon de Reya but we know LIT do their due diligence before funding a case.
Great news. This will bring a huge amount of investor attention to LIT. GLA
LCM’s CEO, Patrick Moloney and CFO, Mary Gangemi present the interim results for the period ended 31 December 2021, followed by Q&A.
Watch the video here: https://www.piworld.co.uk/company-videos/litigation-capital-management-lit-half-year-2022-retail-presentation/
Or listen to the podcast here: https://piworld.podbean.com/e/litigation-capital-management-lit-half-year-2022-retail-presentation/
A decent HY set of results, clearly showing improved cash flow and inline with FY estimates.
Assuming all things equal and with the expected closure of the second fund this year, this company should really start to compound growth over the coming years.
Looking at the presentation it implies 3 more cases came to positive conclusion, but they cannot book revenue yet until cash comes in/ any potential appeal is cleared.
Simon Thompson in investors chronicle picked up on it. He also reiterated a buy.
The Queensland power classaction should start in court soon. I believe CEO said we are on a % of settlement for this case, and it is big
It is there. At bottom of P&L and in detail at note 14. Another period of heavy cash outflow is my takeaway. The cases are all meant to be maturing now but sounds like they closed only 1 of any significance. No results call so no chance to ask questions which was the biggest disappointment.
Can’t see the half year’s EPS anywhere
LCM’s CEO, Patrick Moloney & CFO, Mary Gangemi give an overview of their results for the period ended 31st December 2021.
Watch the video here: https://www.piworld.co.uk/company-videos/litigation-capital-management-lit-hy22-results-overview/
Or listen to the podcast here: https://piworld.podbean.com/e/litigation-capital-management-lit-hy22-results-overview/
Gross profit of A$13.9m (H121: A$5.4m)
Adjusted profit before tax A$7.5m (H121: A$0.2m loss)
Statutory profit before tax of A$4.0m (H121: A$1.4m loss)
Cash of A$43.5m at 31 December 2021 (A$30.3m exclusive of third party interests)
Cash receipts from the completion of litigation investments of A$20.6m, up 94% on the prior year*
Total equity of A$94.3m*
*exclusive of third party fund consolidation
That's me finally fully scaled in to this company. Results in a month and the bod have loaded up too. Very rare in a company like this. So I have followed their lead. Should be an interesting month.