BUR - Will Argentina Pay Burford And When?
2024-03-20 01:13:54 ET
Summary
- Burford Capital's stock appears undervalued after a big legal win in a case against Argentina. But, the stock's value remains dependent on receiving payment.
- The new Argentine President is hesitant to pay. Asset seizures have been hard to implement successfully against Argentina in the past, as NML's experience shows.
- Nonetheless, it appears that Burford will ultimately get paid at least some of what it is owed, and that may be sufficient to help the stock to rally materially.
- This is in part because a successful YPF outcome helps validate Burford's overall business model, and so has value beyond any specific proceeds Burford may receive.
- Still, any Argentine payment could be years away, so patience is needed. Fortunately, the business may perform well in the interim.
Legal company Burford Capital ( BUR ) takes on the rights to promising legal cases on behalf of third parties. They then use their expertise to hopefully win a settlement or prevail in court. The stock appears undervalued after a large legal ruling in their favor in 2023 on a marquee case against Argentina for expropriating the assets of energy company YPF from shareholders back in 2012....
Will Argentina Pay Burford, And When?