SHJ 1.43% 69.0¢ shine justice ltd

BillyZane and DannyBoy, I hear your concerns, but I think you...

  1. 4,147 Posts.
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    BillyZane and DannyBoy, I hear your concerns, but I think you need to temper them through the prism of class actions which are by definition very lumpy and very long winded. WIP and Costs build up significantly over the course of the action, and lets face it, defendants in these cases are wanting to pad them out for as long as they possibly can. It must be getting close to 18 months since we had the court victory and a strong a victory it was, yet they appeal. And only now are we in a position to turn a paper asset into cash, for the costs part of it anyhow.

    Having been a partner in a professional firm during a number of recessions (clearly I am an old fossil) I can tell you that getting accounts paid become very, very problematical. That $39m will be a very handy buffer that many other legal/accounting firms will not have.

    If I am correct (and please let me know if I am not) in assuming these costs would appear under the asset item 'Unbilled Disbursements' - because until the court has decided, there is legitimate person/company to pay the tab, then this $39m is a significant proportion of this asset at FY20 of some $89m. Surely this says what a significant asset this mesh case is and is it not a portent to the likely revenue coming from it?

    At the end of the day we have to assume the directors (as significant shareholders) will act in best interests and when there is a deluge of cash there are only limited ways of applying it:
    (A) Special Dividend
    (B) Buy other assets or businesses
    (C) Return of capital
    (D) Let it sit on the Balance Sheet - not smart given the appalling interest rates on offer.

    My biggest concern is that they will attempt to dish out much to staff members to the detriment of owners. There is always a balance in these matters. Or look to invest in quasi aligned businesses like Class Acton Funding, rather than doing the leg work!

    Overall, a good day and a brighter future.
 
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