RE: Interims announcement7 Nov 2020 11:30
I've lost twice now on this shares decline, principally caused by the ************* report. But I'm buying back in tomorrow - third time lucky I hope.
I fully expect the results to be excellent. Their trading update for the first five months showed 40 completed cases in 2020, with another month of trading this should be around 50 completed cases for the six month period. They completed 54 in the whole of 2019!
I do have a concern regarding whether the market will react positively to the results. Much of their profit growth to date has been from the unrealised gains (their forecast value of a case). But as they close more cases each year these gains are realised. There is also a concern about the length of time they recover the cash from the claims. It could take up to 10 years to get all the cash back from the recent big case win. However, Manolete have said they will reflect this conservatively in their accounting.
Considering all this, I think the upside potential is worth the risk.