– Litigation asset manager – in the business of funding individual litigation cases and in return receiving a portion of the win (if any).
– Earnings in recent years are inconsistent due to the inherent lags before receiving returns and further lags due to the waterfall nature of legacy investment funds.
– Over the next two years, OBL will see most of the lucrative tail end of their legacy Funds 1-3.
– Management in the past has been relatively accurate in their assessment of cash realizations expected from the committed business.
– 2025 EPS projected at A$0.39.
– At 15x multiple + net cash, this would be A$5.85 stock.
– An upside case with 17.5x PE results in A$8.5 target and 130% upside.
Exp. gain: +58% to A$5.85/share in two years.
Full OBL.AX write-up (free guest account required):