Firering Strategic Minerals: From explorer to producer. Watch the video here.
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I am sure there will be some.clarifications later. But looking at facts.
Market cap 95m
Last reported book value at xost 50m
Announced already 10m gbp profit on only 2 deals.
Probably circa 30to 40 pct of portfolio maturing in 12m from now.
There really is a scenario where current market cap could be close to book.value in 12m.
There is no comment about anything other than expenses, all investments are made by a commite which i believe ceo chairs. There is no reason to doubt investments todate.
Worst case in 12m this company might have 80m gbp in cash vs 95m market cap.
When events are clarified later this will rally.
Orr holding it will be close to book.value ib 12m
Certainly didn't think this was going to end up the loss leader today, or any day for that matter. Wish I would have sold at 130p but was again chasing the dream.
Having said that I cannot believe the loss of one individual could cause the mcap to sink 23% in one day.
I don't think we've heard the last of this. Don't you think the timing looks rather contrived, being the last day possible before he'd have hit three years of employment and qualified for options?
If it was just "a couple of expense receipts" I am sure this could have been addressed in a rather different way. But GLA.
Agree avocet.
If you are selling off at a 15% drop today because VC fiddled with a couple of expense receipts then you must have had little faith in the outstanding fundamentals of the company that remain unchanged.
£15m wiped off the value because he didn't declare a burger and a snickers!
Christ alive.
He isn't even the main man or driving force. Can easily be replaced.
I'm not a holder but will be buying in today. Excellent fundamentals. Bargain.
The fundamentals are still unchanged?
The percentage of cases they win, their revenue, their profit, are unaffected.
Unless they are also cooking their books, nothing has changed.
Exactly Blue83. We had been told that matey was the greatest thing since sliced bread and was signing up lots of "Corporate Portfolio" deals as Vice Chairman and basically head of LCM outside Australia. If he cant be trusted to get his taxi receipts right then....Big red flag for me. I have sold. Safer bets in this space.
The drop may be overdone but he was an Exec & the company has to have regional structure so its a fiefdom issue, strong local control abused by boss, even if the quantum was small it puts a question of what else was run to matey's agenda - how will succession go if his domain is staffed by his proteges & sidekicks
Massively, wiped £15m off the value this morning for an immaterial breach of internal policy.
Perhaps it would have been better if the Board had quantified the financial loss, rather than said it was not material. An exact figure is probably not needed but "less that A$ X would have been useful. Investors could then judge for themselves how material the sum is.
I agree, the price drop seems O.T.T.
Didn't think we'd see these levels again. Just done a top up for the first time in over a year as the fall seems overdone. Obviously it is never good to discover corruption at the very top of an organisation, but if the RNS is to be believed it is fairly minor and not a material figure, so I appreciate that they have acted swiftly and communicated (hopefully) honestly about the issue rather than sweeping it under the carpet as it could come out anyway, and that has a far worse impact on the companies reputation. As long as that is the true extent of the story, this will recover no problem.
Very annoying that the actions of an individual has such dire consequences for the SP.
Millions wiped off the market cap, for something that might have been something or nothing.
Hope this will recover soon.
absolutely:
"Up until October 2019, Ms Taylor never thought to fight the superstar, as she did not have the financial resources to take on Perry, but with the support of Litigation Capital Management, she has the funding to take action."
got to read to the end of the article...
Has it got snything to do with LCM?
The trades from today (just two so far) and yesterday show much more buying than selling in terms of value (eg there are four trades listed at above £10k and they are all buys totalling circa 64k) yet the share price drifts down or remains stagnant. Strange to say the least. GLA
https://youtu.be/7Nh5j8r64y4
This is aus interview
I think he said the fees were normally based on a multiple of capital invested raising to 300pct.
He knows our irr is 70 pct so i am pretty sure he would not put a cost of capital as say libor + 10pct
. Ouur 50m usd debt facility has higher cost than that.
I do get your point on reinvestment.
So far i am going with guidence as they have concluded over 250 investments in a timely fashion.
The comments about delays in payment resulting in a higher payout are valid, but my comment was in response to compounding. The more quickly the payment is received, the more quickly one may reinvest in new cases to get high returns. Any uplift in fees as a result of delayed payment will, presumably, be related to a percentage above Libor, or some other base rate, which will be small compared with the potentialearnings from investing in a new, successful, case.
On the time to get the money. The ceo says there is a cost of capital clause in agreements. The longer we wait for pqyment the bigger our fee.
Actually if we have won, and have no uncertainty on result. Waiting longer is good as we get higher returns with no risk. He said this w.r.t the australian or new zealand case they put in rns.
If you listen to the interview by ceo. They target cases where the accused have litigation insurance.
So once it is legally won what excuse does the insurance xompany have.
In carillion case, financial.times notes that the accountancy firm has indemnity insurance policies
This is an excellent result but the big final question does still remain: can/will the defendant pay ? Need to see the cash of course.