Capita Share Discussion Threads

[essentialinvestor] 12/12/2016 17:58

M, sold my small punt at 5.15 on further consideration of the statement.
However unable to avoid my indirect holding in CPI through IT holdings.

Agree on the longer term attractions, however a BOD maintaining the dividend
while selling what looks a highly profitable division to improve debt metrics,
makes 0 sense to me.

Woodford may see it very differently, and in fairness he has probably forgotten
more about CPI than I will ever know.

The market imv would have been much happier with a divi cut.

[minerve] 12/12/2016 17:16

Essential

I did buy back in but on the last update I sold out within minutes of reading it. I almost definitely will buy back in but I hurried the last tranche against my better judgement. I will wait and watch the price action for a few weeks/months to see where it takes us before buying back in. This is definitely a stock I want in my portfolio. My view of the economy/demographics/business make this one of my main convictions when the PE/price has found some stability.

I am not buying into this inflationary story at the moment and think it will run out of steam eventually.

[lonrho] 12/12/2016 17:06

might be best to wait for it to bottom out.

[beazer2] 12/12/2016 17:03

Woodford has just added a further 2 million shares. He was adding at £6.60 having met the management and clearly still has faith. Shares are now trading below the revised price target downgrades of brokers and are down over 60% from their high. Wade in when all are fearful?

[essentialinvestor] 12/12/2016 15:14

M, thanks - and brave btw!, takes guts to be that contrarian- referring to your
buys rather than Woodford.

[minerve] 12/12/2016 15:05

I hate RNS language. Why don't they just put it in plain English so that investors of all ages/experiences can understand what is going on? No point having improved corporate governance if regulating authorities cloud transparency with outdated forms that are incoherent.

[minerve] 12/12/2016 15:01

You've read it correctly - 10% to 10.3%.

[essentialinvestor] 12/12/2016 14:26

Not sure if I am reading that RNS correctly, has Woodford added further?.

[blueball] 12/12/2016 14:15

What a duff share this is.

[essentialinvestor] 12/12/2016 12:01

Can anyone explain selling a profitable subsidiary partly to improve debt metrics
yet maintaining the full dividend, it looks the logic of la la land to me.

Particularly the cost that entails.

[minerve] 12/12/2016 11:58

Keep on moving down - loss becomes opportunity.

[tim 3] 12/12/2016 11:49

Bet Woodford is seething!

Especially as he added earlier this year, visited the company and reiterated his confidence in them after the first warning.

[mj19] 12/12/2016 11:09

Can't break 469 surely

[blueball] 12/12/2016 07:49

I expect another 30p fall today.

[mj19] 12/12/2016 06:59

What's next? Cut divi ?

[ganthorpe] 10/12/2016 12:34

Looks really high risk with a Balance Sheet of £1.9BN of borrowings and £2.9BN of intangibles. They are predicting the CAS disposal in H2 2017 which is quite a while away and look as if they are expecting about £500M for it.
The £515M adjusted pre tax Profit forecast covers the dividend in theory , but then there will be the usual adjustments plus presumably write offs which could be sizeable out of the £2.9BN intangibles. A kitchen sink job could look really nasty.And a new Chairman who is an Accountant.
I think the present share price under 500P is about right , but I'm out and staying out.

[minerve] 09/12/2016 22:29

I never consider director buys or sells as indicators - they rarely ever indicate direction. I completely disregard them and don't even read the notices.

[essentialinvestor] 09/12/2016 22:22

M, saw thanks.

Those director buys once again look shockingly small today,
a mirror of those following the last warning.

[minerve] 09/12/2016 21:44

Essential

Lex have commented on Capita. Interesting read.

[patientcapital] 09/12/2016 21:36

PatientCapital - 30 Sep 2016 - 07:39 - 1526 of 1712 - 0Token director purchases don't convince either. Further downside I suspect simply continuing the negative trend established over many months.

[essentialinvestor] 09/12/2016 14:33

Just calculated my current total exposure to CPI and it's 0.6%,
and that feels 0.6% too much.


Mentioned a few weeks back those director share purchases looked spine
chillingly small, they really looked token to me- and it has been a horror show since
re the share price

I do not think this is terminal, and may indeed be a great recovery play at
some point, what levels that may be from have little idea tbh, all just IMV only.

[salpara111] 09/12/2016 12:47

Well the current market cap would easily see them out of the FTSE 100 so expect tracker funds to sell over the next few months which will keep the share price under pressure.

[paddyfool] 09/12/2016 11:27

Tim, I have spent a long time in the industry, and when it goes wrong in these businesses it is very hard to make it go right!