The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Net profit on class action of over $5m with cash in within 30 days, investment gross return over 60%.
Do you have a link?
Invest webinar suggests it.
Not sure we are there yet.
Seems like we need some higher volume of case win and portfolio update first.
But at least we know things are ticking over nicely
A great day yesterday. On the way to £1.
80m cap , 50m cash. Lots of case wins about to be monetarised. Surely one of the top bargains on AIM.
I like TIFS and CCR both vastly oversold on a 12 month view.
TDF
no idea about this but tempted at 50p range perhaps. Not one for me but GL
In the last year. He knows the true potential of the future SP here. I cant see anything less than £1.20 by Autumn.
Yep during the last big call i managed to get the question of what would happen if the historically overdue cases resolved in line with management expectations. They basically said this was the best guide to the current value and by implication the answer is quite a large number.
I suspect this is why the directors were happy to pay 100p a share.
Surely a non cyclical must have in your aim portfolio.
One thing that seems to be missed.
Many people comment that they do not like the hiatorical cost accounting.
Do they ever consider the impact if they did decide to switch to fair value as they get bigger!.
Could happen and ceo said best estimate was past performance
Nice. Confirmation of 3 wins on the period.
Love that we win. Derisking it
Then they appeal taking time.
As time passes our return multiplier increases.
Even though risk decreases. Lovely.
Like extra bet on a racehourse 1m from the finish line at pre race odds
Things are moving quickly in the right direction here. Just added £2000 on the bell.
We also have the comet case that was won but might be appealed. More than likely that is worth even more than this realisation so looking nive.
Warno - agreed. We are on the same page.
Spot on Gallmat, this was not a case to be dreaming of megabucks and i wasn't. Great return for time period and their record remains intact.
Look forward to seeing more resolve this year.
Fully agree with you putting the right context into this Forensic. Risk of expectations for megabucks. The reality is still very good however. Generating GBP3.6m gross profit on the balance sheet (AUS$6.4m) and a further GBP3.6m in the fund drives good news for both the overall business and their fund products.
For me, this most shows the Return they can get on investment (278% for balance sheet and 90% for fund) without going to trial. And when you convert that gross profit into US$ to link to their reporting, this one case is worth 28% of operating profit if measured against the from the 2021-22 accounts. 4-5 such such cases a year lead to profit growth .
53 cases currently in play (52 if you take off this one) according to full year result presentation with a few being settled already. I feel share prices should be more at the 90p level currently, with revenue and profit growth hopefully going to be stronger for 2023 onwards
I posted a link with interview that stated this was return on capital not share %.
It is unlikely someone is going to offer you 60m gbp from investing 2m. So i always say expect return on invested capital. Which is still great.
270pct in 1 year!. And they confirm all other cases are still active no losses.
We might get big payouts on class actions and they stated formally queensland power class action where we are on 20pct ish profit share.
I also hope the pfas case might also be profit share as it is also class action
I think expectations need to be grounded
Sadly, seems market a little underwhelmed...
This is a good example of where the much maligned "Fair Value accounting" proves its worth. LIT dont use it, other litigation funders do.
The problem is that you and I read that they are funding the "£1.6 Billion" Carillion Claim. We (quite naturally ) assume that this should resolve in one way or other for at least (say) £300m. We then surmise that the Funder should be getting at least 20% of that £60m, as a *** packet estimate.
But it is nothing of the sort. They made £3m from this.
If they had been using Fair Value this reality would already be in the balance sheet. Instead I have read shareholders saying things like "they have several cases that are all worth the market cap in just one case".
Now on Reuters. Share price barely budged
https://www.reuters.com/business/kpmg-reaches-settlement-with-liquidator-carillion-2023-02-17/?taid=63efa10448729e0001dea2c1&utm_campaign=trueAnthem:+Trending+Content&utm_medium=trueAnthem&utm_source=twitter
https://twitter.com/MarkKleinmanSky/status/1626590020235821057
Settlement reached between KPMG and Carillion
From the Greenx Rns this morning...
On 30 June 2020, the Company executed a Litigation Funding Agreement (LFA) for US$12.3 million (*now worth A$18.0 million with the movement of the A$ compared to the $US) with LCM Funding UK Limited a subsidiary of Litigation Capital Management Limited (LCM), to pursue damages claims in relation to the investment dispute between GreenX and the Polish Government that has arisen out of certain measures taken by Poland in breach of the Energy Charter Treaty and the Australia - Poland Bilateral Investment Treaty (BIT). LCM will provide up to US$12.3million (~A$18.0 million), denominated in US$, in limited recourse financing which is repayable to LCM in the event of a successful Claim or settlement of the Dispute that results in the recovery of any monies. If there is no settlement or award, then LCM is not entitled to any repayment of the financing facility. In return for providing the financing facility, LCM shall be entitled to receive repayment of any funds drawn plus an amount equal to between two and five times the total of any funds drawn from the funding facility during the first five years, depending on the time frame over which funds have remained drawn, and then a 30% interest rate after the fifth year until receipt of damages payments.
I wouldn't be concerned about that at all. In fact, it's a positive - having met the guy and having (reluctantly) done some business with him, I can confirm he is an absolute weapon. That's being polite.