The latest Investing Matters Podcast episode with London Stock Exchange Group's Chris Mayo has just been released. Listen here.
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Was pretty shocked to hear yesterday that they are still paying Ian Rosenblatt £millions not to compete for a couple more, even though they paid a fortune to buy the business!! Unbelievable. The CEO looked very shocked that someone knew that information....
Ian brings in literally 90% of the business. So when he goes this is worthless. By all accounts he is a greedy man, always in debt but has the management over a barrel here. This shouldn’t be allowed.
There was an rns detailing the arrangement so she could hardly be shocked. Your perception was very different to mine. Perhaps because you sold at a lesser SP!
For those that missed the webinar:
https://www.youtube.com/watch?v=XewqX6hvPws&ab_channel=YellowstoneAdvisory
I am still offloading (gently). Sale quote on any major volume is awful (if you can even get one).
Hear what you say about RNS, thanks. Still doesn’t make commercial sense however.
You stated "Ian brings in literally 90% of the business". While I doubt this is true, I can't disprove it - I only know that revenue per fee earner was £497,500. If however, Ian does bring in a significant outsized share of revenue, this does IMO make commercial sense.
Thankfully the business is transitioning (albeit poorly timed but who could have predicted Covid) so that it is less reliant upon RBL and we are told that Convex activity has markedly improved. Lionfish appears to offer significant opportunity, in particular with their ISLERO offering. I hold Manolete but think IPs will be duty bound to use this cheaper option allowing estates to receive a greater share of recoveries, while still enjoying the benefits they do due to the model. This is a huge addressable market.
My husband holds Mano. He laughed when CEO said they would undercut Mano as Mano give "hardly anything away". Apparently Mano pay away at least 50% to Liquidators. I had a look at their last RNS and that looks right: £15m settlement and £10m went to the crediotrs it seems. I had a look at their website and sorry but the CEO is just lying quite desperately there from what I can see !
As you say the Convex acqn was unfortunate but the strategy RBGP say is to use Convex profit monies to invest in LionFish. COVID made Convex loss making and unless I am mistaken the pandemic is still very much ongoing. Very tough for any M&A of course. They are already well into their HSBC debt facility and have put £4m already into LionFish but litigation is VERY hazardous to predict to a conclusion (and sometimes you lose). So I cant see how that stacks up. You need deep pockets for litigation funding surely?
As for Ian Rosen: they bought the business once, why do they have to keep throwing millions at him to keep him onboard?
rather than speculating about me, what I'm paid, what I'm worth to the business etc if u rang me up u might possibly find out some facts and u might be better informed
Have you not seen Mano's vintage's table and their money multiples? RBGP rightly want some of that and have the competence and resources to do it. IPs have a duty to do the best for for the estate so are obliged to get the best deal they can. If RBGP offer the same benefits but undercut Mano on price (while still making a healthy margin) they will get the business. That seems quite obvious to me and will no doubt of had an affect on Mano's SP in combination with the SharePhophets attack. Thankfully I only have a small holding there @ 300p as have concerns it may drop further with. Mano's PE being > twice that of RBGP's.
As for the payment that was disclosed via an RNS, It clearly stated the total amount was 1 million and that is was a one off.
@Ianblatt couldnt you just state them here ?
From Mr F:
“Somewhat naive Jammy C. In 99% of cases a Liquidator would already have a law firm engaged investigating the claim. Over their dead body will they take money from a competing law firm! They aren’t stupid - a name change to “Lion Fish” isn’t likely to out fix them. And [as previously stated] Manolete gives a minimum 50% back to the creditor estate [as per their latest big case win and the vintage table you refer to]”.
@Forensic505 I prefer to talk to a human being rather than a computer
Maybe ask Mr F how Manolete fund and acquire claims? My understanding is that it would be the same here other than that the estate would receive more of the collectables - making RBGP the more attractive option. Look to the future rather than the past.
Ian - She isn't here learn. Why would she publicly bad mouth yourself and the company while supposedly attempting the sell large quantities? That's not the action of a rational being, rather someone rightly concerned about their Manolete holding or someone short on a grubby spread bet thinking they can influence the market.
Jammy - I try to use these forum for sensible debate. There doesnt always have to be an immediate money making angle. I think we all need to understand the key issues relating to any company before making (slightly more) informed investment decisions. I think PLC Law related firms are interesting. No one is "bad mouthing" (save that language for Twitter). We are just trying to ascertain cogent facts. GL.