IMF (Australia) Ltd

By Jason Fittler

Note: We do not research this company.

IMF is a provider of funding of legal claims and other related services where the claim size is over $2 million.

IMF has offices in Sydney, Perth and Brisbane, and has brought together the major participants in the litigation funding market in Australia.

IMF's services include funding for litigation and investigations preliminary to litigation; indemnities for adverse costs orders; strategic planning, monitoring and managing litigation; factual investigation including asset tracing; and assistance in facilitating settlements and maximizing the value of each claim. However, IMF does not provide legal advice.

The company has a market cap of $176 million and is currently paying a 14% dividend. In June they announced a final dividend of 10c per share bring the total to 15c per share for the year.

They currently have 26 cases outstanding, which should be settled before June 2011, the maximum payout from these is a combined $1,165 million. There are involved in actions against, Opes Prime, Village Life, Lehman Brothers, Great Southern and Brisconnections.

The below chart shows the recent trading patterns on the stock, history tells us that these type of companies make the most money during the period three years after the market bottoms. I would expect to see some good results in this company in the next couple of years.

Please note... we do not research this stock and is it a speculative trade, but for those who have the appetite for risk you could do very well on this stock.