Member Info for Forensic505

29 Jan 2021: RNS:

"....announces that David Beech (Chief Executive Officer) and Bal Johal (Chairman) (together, the "Selling Shareholders") have sold, subject to completion, 15,700,000 and 300,000 shares in Knights respectively, at a price of 390 pence per share (the "Placing")"

LeCheval summarises the position very well. The CEO trousering £30m placing his shares at the very top last year is an all time pi_ss take. More fool the moronic institutions who bought it. He'll be laughing his way to Barbados soon.

That is the very definition of perverse! :-)

The general rule is that Courts will not interfere with the commercial judgement of an Officer Holder, unless it was perverse. That has been the case for decades. This judgment confirms that. “Perverse” is a comfortably high bar.

Didnt even get a dead cat bounce with this one...TBH (easy to say now I know) I thought the valuations of all the listed law firms were pretty nuts. I am expecting a wider correction across the sector. Corporate and Personal budgets always look to squeeze legal fees in tough times.

Solid buying activity all day...interesting...this could easily pop to double

Yes very unusual pattern for this stock which has been ignored by the market for ages. Used to be over well over 200p and has quietly progressed well in the exciting cyber security sector. Could be good upside here. I have just got back in following being on the sidelines for three years.

There have been two reports on the insolvency litigation funding sector by Peter Walton (easy to find on Google). Mano sponsored one but both give Mano a very dominant market share (over 50% and rising if memory serves) over a number of years. This is a specialist sector and the avg case size is also well below most Funders minimum size. Mano own most (90%) of their cases, other Funders use a “Funding” model. So very different models to listed peer group.

Others have said they will compete but can’t see that they have made any headway. RBGP very publicly said they would aggressively compete. They only managed to back one case and then gave up and changed to a “Funding” model. They seem to now be focused on the BUR model but smaller cases.

Headroom is one thing. Covenants tests are a lot more stringent than mere headroom.

Agreed Pokerships. My concern is the level of debt taken on to make all the acquisitions. Not just interest rates increasing, I am concerned that bank covenants might be in danger of breach.

That is not correct Figueire - clearly states: "will vest over two years and be subject to no further conditions other than for Robert Parker to remain employed". Good try.

I agree Planetx - this is just outrageous !! Released on the same day as results hoping no one would pay it attention. Also looks like they are bribing the CFO :-)

Well done Nostradamus

Too much debt here and too little cash inflow. SP not even capable of a debt cat bounce which is very concerning.

Knights profit warning today. SP down 50%. Fairly obvious read across to Keystone.

Well the CEO sold about £30-40m of his stock about 6-9 months ago…writing was on the wall…

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.

For those who really understand the intricacies of this situation now, the incredible value on offer here is just mind blowing.

Fishcakes how can a CFO trade when they know what the results are gonna be ? That is inside dealing isn’t it? Even if not formally on the board yet, the CFO has “special” knowledge, that the likes of you and I do not.

I think that’s spot on sturdz18. The partial Omicron lockdown will have delayed IPs and lawyers from doing their work as efficiently but the surge in insolvency cases should last a number of years now. It’s just a matter of time before Mano rides that wave and I think you “middle 2022” is a good estimate.