devonplay
07 Aug 2019
Double Bottom bullish signal Yep, catalyst was the Gotham City Report. gothamcityresearch Quindell PLC: A Country Club Built On Quicksand Gotham City Research initiates coverage on Quindell PLC, with a price target of 3p/share (92% downside)SUMMARY 42%-80% of Quindell’s profits are suspect, as
devonplay
07 Aug 2019
Double Bottom bullish signal *“Quindell has a market cap of £2.1bn, making it the second-largest stock on AIM.†I seem to rememebr they were first, but certainly in the top 2. *source Trustnet. [link]
devonplay
07 Aug 2019
Double Bottom bullish signal Got it. The legendary Quindell. Wasn’t that AIM’s biggest stock at one point?
Ripley94
07 Aug 2019
GTC limit lifted BUR… XXXX Big faller yesterday afternoon on rummer “muddy waters†had a short sell report on a London company . And they would release @ 8am today . Rummer it was this one. RNS from company @ 7am … "All is in order " Share price gained at open increased my buy limit to 1100 from 1000. Report came @ 9am my limit lifted immediately @ 1050 passed 1000 to a 945 low . volatilising between 1100 and 945 following 45min lots of volume .
devonplay
07 Aug 2019
Double Bottom bullish signal Eadwig: I’ve seen this sort of thing happen with micro-caps before, but not the largest company listed on AIM. I can’t remeber that company that finely collapsed. It’s was the previous biggest AIM company wasn’t it. They moves upto the main market, FSTE 250. But the shorting started when they were the largest on AIM. The Shareprophets were always going on about them and I think Muddy Waters also shorthed them. It’s not Globo, but the other one. The name just avoids me at the moment. DL
Ripley94
07 Aug 2019
Double Bottom bullish signal Hi Eadwig did you do anything .
Eadwig
07 Aug 2019
Double Bottom bullish signal Well, here you go. Its all about who the market believes now www.muddywatersresearch.com/company/bur/ We are short BUR. For years, it was the ultimate “trust me†stock. Thanks to a light disclosure regime, the esoteric nature of its business, and unethical behavior by its largest shareholder, Invesco, it turned Enron-esque mark-to-model accounting into the biggest stock promotion on the AIM. This has all recently changed though. Just this year, BUR began publishing more detailed investment data. This data proves that BUR has been egregiously misrepresenting its ROIC and IRRs, as well as the state of its overall business. We have identified seven methods by which BUR manipulates Concluded Investment ROIC and IRR. BUR’s top management, through their shareholdings (and sales), is in effect primarily compensated for aggressively marking cases in order to generate non-cash fair value gains. Until now, BUR has gotten away with aggressive and unwarranted marks by touting ROIC and IRR metrics. We show that BUR heavily manipulates these metrics. BUR then actively misleads investors about how its accounting for realized gains works. As a result of this deception, we believe investors give credence to BUR’s fair value gains. In actuality, BUR’s net realized returns have relied on a very small number of cases. Just four cases have produced approximately two-thirds of BUR’s net realized gains since 2012. (One of the four outsized contributors was actually a loss a trial, and was bailed out by BUR’s largest shareholder, Invesco, at the direction of Neil Woodford protégé Mark Barnett. Absent the bailout, the case almost certainly would have been a total loss.) BUR is a perfect storm for an accounting fiasco. BUR’s governance strictures are laughter-inducing. The CFO is the wife of the founder / CEO. Under the best of circumstances, this should alarm investors; however, with a company that consistently books non-cash accounting profits, it is unforgivable. BUR has cycled through four prior CFOs or senior finance managers (none of whom stayed for long). These facts beg the question “Is (current CFO) Elizabeth O’Connell the only CFO who can be relied upon to approve the accounts?â€
Eadwig
07 Aug 2019
Double Bottom bullish signal If this is a ‘short attack’ as BURford management claim, its a bit silly to take on a bunch of litigators! Before I saw this I went back through the results wondering if I had missed something and I can’t see any reason for such a fall - particularly one that started intraday after an upwards spike on release of results. I’ve seen this sort of thing happen with micro-caps before, but not the largest company listed on AIM. Someone is going to come out of this looking very bad - I just hope it isn’t the BUR management because I have quite a lot invested here at an average of around @1400p
Eadwig
07 Aug 2019
Double Bottom bullish signal 7 August 2019 STATEMENT RE SHARE PRICE MOVEMENT The Board of Directors of Burford Capital Limited (“Burford Capital†or “Burford†or the “Companyâ€) notes the decline in the Company’s share price yesterday and confirms that it knows of no operational or corporate reason for the price movement. Burford just reported the best results in its history and highlights the following: • Burford’s cash position and access to liquidity is strong. To be sure, Burford will need to take on additional external capital to continue its growth as it has done successfully throughout its history, but this is a cause for celebration, not for alarm, because it means the business is growing rapidly. We have discussed our capital structure at length in the past. Burford has a wide variety of capital sources available to it and significant ability to manage its cash outflows, and has over $400 million of cash and cash equivalents on hand as of 5 August 2019. • Burford’s returns are robust. In fact, our litigation finance returns rose to their highest-ever levels as of 30 June 2019. • Burford uses the same IFRS accounting that is used widely across the financial services industry and has used consistent accounting policies for many years. Burford has been audited by Ernst & Young since 2010 with clean audit opinions every year. • In addition to our audited IFRS reporting, Burford provides cash-based investment reporting in extraordinary detail, including providing line-by-line investment detail about every litigation finance investment we have ever made. We just put the latest installment of that reporting on our website yesterday. We are transparent about how we analyse and report on that data; our approach has been consistent for many years. Burford believes that yesterday’s share price movement relates to a rumour of a potential “short attack†or “bear raidâ€, a tactic where short sellers take on a short position in a company’s stock and then engage in claims about the company in an effort to alarm investors, depress a company’s stock and profit from the decline. Burford also believes that some of its prior recent share price volatility is related to such activity. There is a clear line between appropriate commentary and market manipulation, and Burford is investigating, with the assistance of market experts and experienced outside litigation counsel, the market activities here and will take appropriate legal action should we discover actionable misconduct. We are strongly suspicious that yesterday’s significant fall in the share price was based on such actionable misconduct. Short sellers of this ilk are not long-term investors. Rather, their goal is to panic investors into selling their holdings and thereby to drive down the share price. If investors oblige them, then the attack succeeds, long-term investors are harmed and the short sellers pocket a quick payday. Companies are largely powerless to intervene in this dynamic other than by continuing to perform, just as Burford has been; the way to thwart the attacks is for investors to recognize manipulation for what it is and not behave as the short sellers hope. Burford will continue to focus on business performance in our growing market and its long-term goals.
devonplay
07 Aug 2019
Double Bottom bullish signal Mentioned on the Investors Chronicle as a “short†I believe.
Lastemporer
06 Aug 2019
Double Bottom bullish signal Thank Christ I left this on results day, it’s down 30% since. It could be Woodford or a sell off from this: [link] MuddyWatersResearch †Verified account @muddywatersre 4h4 hours ago More Muddy Waters is now in a blackout period until tomorrow 8 am London time when we will announce a new short position on an accounting fiasco that’s potentially insolvent and possibly facing a liquidity crunch. Investors are bulled up about this company. We’re not.
holmes2403
06 Aug 2019
Double Bottom bullish signal and today seems to be through the floor … Woodford about to dump stock ?
Lastemporer
06 Aug 2019
Double Bottom bullish signal Still catching a falling knife, always best to wait for a clear bottom, I think it will go into 1250’s.
Eadwig
03 Aug 2019
Double Bottom bullish signal Lastemporer: For me sentiment drives the stock, it’s now negative so I expect it to break 1400 support and head south. Chart looks awful to me, rather continue to wait and see. It maintained the support a little above 1400 on a very bad down day today across the board. It may not if Monday is as bad again across the markets but I don’t think it will be after recovery towards the end of the day in USA. In which case low 1400s should prove to be a buying opportunity for a quick 15% trade.
Lastemporer
02 Aug 2019
Double Bottom bullish signal For me sentiment drives the stock, it’s now negative so I expect it to break 1400 support and head south. Chart looks awful to me, rather continue to wait and see. image.png858x540 9.53 KB
