Member Info for Forensic505

Completely agree. RNS looked like clear preparation for USA listing to me.

You do get the feeling here (no more than that) that with a bit of sustained good news here, this will rapidly rise. Confirmation of USA listing would be more than helpful....

Spotted on ADVFN

https://manolete-website-production.s3.amazonaws.com/101?response-cache-control=private%2C%20max-age%3D3600&response-content-disposition=inline%3B%20filename%3D%22file.pdf%22%3B%20filename%2A%3Dutf-8%27%27Master%2BInvestor%2BRoadshow%2BFeb%2B2020%2B-%2B15%2BFeb%2B2020.pdf&response-content-type=application%2Fpdf%3B%20charset%3Dbinary&AWSAccessKeyId=AKIAI5PRXLEGZJS5BL4A&Expires=1582193726&Signature=ab%2F4WVDd2baqwKNijYFMf0MNtCc%3D

And more useful!

https://manolete-website-production.s3.amazonaws.com/99?response-cache-control=private%2C%20max-age%3D3600&response-content-disposition=inline%3B%20filename%3D%22file.pdf%22%3B%20filename%2A%3Dutf-8%27%27Manolete%2BPartners%2BPlc%2B-%2BBPR%2BOpinion.pdf&response-content-type=application%2Fpdf%3B%20charset%3Dbinary&AWSAccessKeyId=AKIAI5PRXLEGZJS5BL4A&Expires=1581148775&Signature=7YiZr9eAxYzV4ZK%2BDd3ikYgYFXw%3D

This looks rather useful:

https://manolete-website-production.s3.amazonaws.com/100?response-cache-control=private%2C%20max-age%3D3600&response-content-disposition=inline%3B%20filename%3D%22file.pdf%22%3B%20filename%2A%3Dutf-8%27%27Manolete%2BBPR%2Bltr%2Bfrom%2BHMRC%2B25%2BNov.pdf&response-content-type=application%2Fpdf%3B%20charset%3Dbinary&AWSAccessKeyId=AKIAI5PRXLEGZJS5BL4A&Expires=1581148775&Signature=2Z0eUHQMzYOUHNAsOcdSnNLcJo4%3D

A company that has just generated £900m (£500m for its own balance sheet) on a market capitalisation of £1.5 Billion.....This is obviously severely underpriced now.

I sense the new CFO (impressive yet sober on recent call) is having a very positive impact on overall governance.

Having been on the sidelines for some time, I am now back in here. £7 going to £9 has always been an easy journey on this one.

It’s called a “Profit Warning” fellas

I share your concern on restricted working capital/over-trading. Over the last few years BUR has regularly raised large amounts from the Bond and more recently the Equity markets to fuel the huge increase in case related and overhead expansion costs. I think the real damage done by MW is that BUR may now find it very difficult to tap those markets. The alternative source would be to generate funds from cases but (excluding Petersen) this has historically been far too low. After all the innuendo around the Petersen case, can they syndicate more of that single case ? I have doubts. So maybe time to run the business for cash (at least for the next 24 months) but would obviously stunt growth. The switch to Portfolio funding is also relevant - portfolios tend to consume large amounts of cash, returns are much lower than single case (though less risk) but durations dont appear to be any faster than single case investments. So ties up very large capital and relatively low returns. Just my thoughts. As ever DYOR and best of luck.

Master Investor
25 November 2019
Mark Watson-Mitchell
Small Cap round up: featuring Manolete, CMC Markets and Codemasters

Manolete Partners (LON:MANO)

The interim figures to end-September, for this leading insolvency litigation financing company, were announced on Thursday.

They showed an excellent rate of progress, with revenue up 15% to £7.5m, helping to generate a pre-tax profit 42% higher at £4.3m.

Earnings leapt 41% to 7.9p per share, while a first-time interim dividend of 0.5p per share was declared.

The group ended the first half with a totally unutilised £20m revolving credit facility from HSBC, although cash balances were £6.6m at £3.1m, while net assets were £2.9m higher at £30.9m.

Investment into new cases was up 110% at 65, compared with just 31 at the same time last year. In fact, that is more than the 61 the company handled for the whole of the previous year.

The company has now completed the development of its proprietary regional network, with dedicated in-house insolvency lawyers in every major region in the UK.

One of the key features of Manolete’s business model is that it takes on and deals with its cases fairly quickly, and the average completion time is 11 months. It also acquires the majority interest in its cases, instead of acting as a third-party to those cases.

I consider that this company has massive, wide-open potential in its market. It has the capability to take on and achieve success in its acquired caseload.

I met the boss Steven Cooklin earlier in January this year and it was my first featured profile stock in mid-February, with its shares then at 230p, at which time I set a target price of 300p being achieved by the end of next year.

Well, that was attained and bettered inside the following fortnight, at which time I then followed it up with an end month profile at 330p.

The shares have subsequently peaked at 620p, only falling back to 400p when Muddy Waters hit its international competitor Burford Capital, before bouncing back up to 530p earlier this week.

The shares are back down to trade around the 450p after the results, but they will be back higher very soon – just mark my words!

Between the Investors Chronicle and the Aussies, they have done a real number on UK investors here...

JohnDoe: Starting to feel like a stock market oracle :-))))

Sold at 850p. Seems to be trading in range of 760p - 850p. Knowing my luck today it will close at 923p !

Good news. Link have sold a further 2%. Down to just below 5%

Stepping back for a moment. I do find it quite crazy that the clear global leader in the rapidly expanding and revolutionary industry of litigation funding being valued at just £1.6 Billion. Maybe £4 Billion was questionable at this stage of evolution but you cant help feeling that an alternative investment fund would find this highly attractive. No wonder Fortress (Softbank) bought Vannin recently and Burford is a far higher quality outfit.

I believe the situation is that Burford has not revealed the element of unrealised profit release on the Petersen case. That is clearly the correct thing to do in my humble view - if Burford enter into settlement negotiations on this case, it would be highly damaging to our position if the defendant knew that value. Doesnt help the valuation exercise but thus certainly maximises shareholder value.

Crunch time: Can we build on the 850p?

We'll be straight back after this short commercial break.....

That’s the general idea :-)))

Whoever was behind this huge number of cancelled sell orders, what must be true is that the shares were forced down to an artificially low price. Surely the current price remains impacted ?

Absolutely right !!