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The Case For 100% Upside
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Table of Contents
On Monday, we previewed the bullish case for litigation financier Burford Capital (NYSE: BUR).
As a brief recap, the major upside catalyst for the business lies in its 38% stake in a $16.1 billion judgment awarded in the YPF case – involving Argentina’s nationalization of its largest oil company, YPF, which caused two hedge funds to lose billions of dollars.
The market has so far assigned low odds of Burford actually collecting on this payment because… well, it’s Argentina we’re talking about. But as we’ll explain today, the odds are stacking up in Burford’s favor toward forcing Argentina into a settlement agreement. The punchline: we believe Burford could be on the cusp of a multi-billion-dollar windfall that could send its shares higher by 100% or more.
If you haven’t yet read part I on Burford, we suggest starting with Monday’s Daily Journal to get caught up with the background on this case.
Let’s begin by laying out the appeal dynamics for this case.