Capita Share Discussion Threads

[brucie5] 09/12/2016 10:51

Just looked in here. There was 5 year support at £6. The next obvious line in the sand seems to be £2. That seems unlikely on the face of it. But I've always found it helpful to remember the adage that if a share falls by more than half it's very likely to half again. If we saw £12 as the 5 year crest, that could suggest £3. To people who say. 'Never!', I'd just sit and wait for the chart to do the talking. It's done quite a lot so far, and those who caught it at that level might have bagged a bargain. £2 actually looks to be the historic line in the sand, but you have to go back 14 years for that!

[tim 3] 09/12/2016 10:43

Hear what everyone says but think there is a tendency to only see negatives at times like this,worth remembering company's value is about a third it was a few months ago.

[paddyfool] 09/12/2016 08:22

Doesn't look good. Their non-organic approach is dead now as the share price doesn't have the multiple which enables them to be accretive anymore. As a result the growth has to be organic, so the announcement was only stating the obvious. Capita will struggle on the organic growth front as they have for sometime. The fact that they are looking to sell their asset management business will send warning signals to all future large customers who will have at the back of their minds the possibility of Capita not being the ultimate owner. Until now this was the safe bet.Add the turmoil in the customer base and a set of restructures, it's not hard to get to a very negative view and the liklehood of more bad news to come. The sale to beef the balance sheet is an opened negative story.

[blueball] 09/12/2016 08:21

Falling like a stone 400p next stop.

[mj19] 09/12/2016 07:33

Next it will a divi cut right

[diku] 08/12/2016 23:05

This going to be out of FTSE 100 on the next reshuffle or is it already out?...

[mj19] 08/12/2016 22:28

No technical support in sight for Capita until 400p, technical analyst saysAlexander Bueso | Sharecast | 08 Dec, 2016 10:57 - Updated: 11:17 | | | Technical analysts at Digital Look described Capita´s technical backdrop as dire after the company cut its guidance one again, sending shares crashing lower."Taking away the odd bounce in the shares here and there the share price trend in Capita is very bearish. Towards the end of September it left behind a large 'bearish gap' at 952.9p which is now its main area resistance and lies far away," Digital Look technical analyst Jose Maria Rodriguez said.It´s not at all easy to analyse a stock which is this bearish, especially after having lost a key level of technical support at 600p, which has now turned into resistance, he added.The outlook was little improved even if one stepped back and looked at the share price trend since the lows reached in 2002, given that the 61.8% Fibonacci retracement level had also given way.There was no clear technical support in view until 400p, Rodriguez concluded."When a stock drops this sharply, anything is possible."

[mj19] 08/12/2016 22:24

What's fair value here... who knowd

[bigbigdave] 08/12/2016 16:59

Not bust but will do a Serco imo with the share price going much lower than this. Will take some time to restore market confidence.

[salpara111] 08/12/2016 16:57

Well, it certainly took out that 500 line with conviction.
I wonder how Woodford feels today after apparently being reassured by management after the last profits warning.

[blueball] 08/12/2016 15:20

Sub 500p for the first time.

Are they bust.?

[patientcapital] 08/12/2016 11:52

Just skimmed the rns. Sorry some were encouraged to buy after the last statement. Heads at the top should be considering their positions.

[essentialinvestor] 08/12/2016 11:09

GSK has been my main add recently, followed by DGE.

[blueball] 08/12/2016 10:45

HSBC are right price target 450p.

[garycook] 08/12/2016 10:35

Minerve,Was thinking of buying here.But well left alone after the statement today.More profit warnings ahead IMHO.Better putting more money into GSK.

[minerve] 08/12/2016 10:34

Essential

No, no problem at all Essential. Your concerns were, of course, right and now I have some work to do in order to understand where I failed in my investment thesis - that is if I really do have one. LOL

[essentialinvestor] 08/12/2016 10:32

tim, very surprised on the divi, would have taken that down by 40% at least,
it just adds additional uncertainty now as another warning would see it cut anyway.

Serco which looked near a basket case a couple of years ago now appears to be recovering,
GFS- very nice recovery there, so there is some hope.

Calling a low as much luck than judgement imv.

[tim 3] 08/12/2016 10:28

Good posts guys.

Agree divi should have been cut.

Its clear things are not going to turn round overnight and way to much management waffle in the update.

Still holding but due to the fall already stake is not massive but not tiny either.

[minerve] 08/12/2016 10:27

Yes, hats off to you sir - John Ficenec at Questor. I shall add more weight to your commentary for sure from now on.

[essentialinvestor] 08/12/2016 10:26

M, apologies if it sounded glib, it's just having seen this so many times
in the sector I expected more bad news, mentioned it to you on the LLOY board
a couple of months ago from memory.

However this does not look terminal, hopefully.

[gwatson56] 08/12/2016 10:25

Like most a tad surprised given Woodfords thumbs up. Sold a couple of tranches late yesterday (all SP's tend to retrace on news) and just now. Took a hit but have to be sensible. Left some in and will watch with interest over the new year.

[minerve] 08/12/2016 10:23

Essential

"Folks is there really any surprise here?"

Probably not to be sincere.

[essentialinvestor] 08/12/2016 10:22

Also a very good call by Questor, very early to highlight the weakening metrics,
well ahead of consensus.