Capita Share Discussion Threads

[little beaker] 02/3/2017 07:52

OK, pleased to hear you worked as a business annalist, chortle.

[ch1ck] 02/3/2017 07:51

Results are out and as expected they show a loss but this I feel is in the price already.There is a webcast at 8:15 today so will hold off making a decision until I have seen this.Having worked as a business annalist for the company I believe big changes are planned to recover their position in the market. The CEO Andy Parker has announced he is stepping down which in my opinion is a good thing as this will bring a new direction to the company. They bought too many companies which they did not fully understand and this has cost them this year.

[little beaker] 02/3/2017 07:36

Good cash conversion ratio.

All eyes will be on trading updates for H2 performance after H1 2017 flagged as weaker than 2016 but similar full year result.

[patientcapital] 02/3/2017 07:24

RNS - not before time imo.

[mj19] 01/3/2017 23:35

Capita's are another company's annual numbers that "will look messy", said Numis, following its own profit warning in December.At that time management guided to underlying profit before tax of "not less than £515m", a around £1.9bn debt and net debt/EBITDA 'in the region' of 2.9 times.With the recent contract assets review announcement indicating the company would write-off circa £40m of accrued income to underlying profits, Numis sees underlying PBT in the order of around £475m.This is not to mention indications that assets of roughly £50m will be written-off as a non-underlying charge and an exceptional of close to £50m in respect of restructuring plans."More important, in our view, will be the cashflow performance, and particularly the working capital management," Numis said, also looking for some replenishment of the pipeline.

[patientcapital] 26/2/2017 08:14

Some of us were questioning this weeks ago.

PatientCapital - 29 Jan 2017 - 09:13:39 - 1763 of 1847 Capita with Charts - CPI
I'm surprised that shareholders haven't called for one or more changes at the top. There was a time when such demands weren't needed of course. People did the decent thing after making mistakes. Now it's all sloping shoulders and 'sorry'.

[playthebull] 22/2/2017 17:33

Blimey. Just kept on going. More of the same tomorrow please :-)

[bakunin] 22/2/2017 12:42

well, I did lose a bit higher up (I thought the strategy analogous to Xchanging of productising out of service contracts was a good one) but sold out just before the big drop (unusual for me because I usually hang on in for the very L-T; something I'm trying to rectify as it doesn't really work in psychologically-driven markets). The coop was a very bad execution of the strategy, but they have many irons in many fires just reading through the Annual Report. I've worked on enough IT projects to know that they don't all go well. You wont get Google etc even attempting to manage the armies of IT staff that CPI does. Otherwise, public sector IT management would be easy: just give all the contracts to Google/Microsoft/...

[essentialinvestor] 22/2/2017 12:28

Good post Tim, like the honesty as well.

[tim 3] 22/2/2017 12:26

And technicals very good too.

That engulfing bull candle yesterday on high volume is almost text book.

We all know that when negativity dominates a share then the positives tend to get ignored.

I note IC issued a sell rec a few days ago...that could help too ;)

In fairness I hold from a lot further up and don't expect it to get back up there but nice to at least see the loss reducing!

[bakunin] 22/2/2017 12:16

tim
Just looking at fundamentals this morning, reading the Annual Report.
The sell-down has been way overdone.
Trump/brexit will produce big new opportunities.
We're on the cusp of a tech rally imo.
CPI has been veering towards greater tech. orientation in its portfolio, eg they tried to nab Xchanging recently.
They're about to offload some low-tech stuff to tart up the B/S
With £500m+ PBT guided for this year and next, we need to be circa 700p just to get a "normal" P/E of 14. And that gives nothing for strategic realignment and Trump/brexit reflation surprises to the upside.
Investors still on the sidelines and traders not yet fully engaged.
Creep up to circa 600 for the results?
Possibly fly to 700 after the results if they can articulate a way forward.
Numis only ones with a Buy. They also have a Buy on SIV which has also been beaten down irrationally imo

[tim 3] 22/2/2017 11:41

Another strong start today through resistance on decent volume.

[bakunin] 21/2/2017 19:28

Add a 20/50 Golden Cross on the daily and a bullish engulfing on the monthly to the technical set-up.
20-50-200 all perfectly set up on the daily.
RSI moves into bullish territory and accumulation indicators like OBV/CMF/ADL all pointing up nicely.
Beautiful bottomed base now in place.

[tim 3] 21/2/2017 19:20

Broker Forecast - Numis issues a broker note on Capita Group (The) PLC

BFN

Numis today reaffirms its buy investment rating on Capita Group (The) PLC (LON:CPI) and set its price target at 685p.

Story provided by StockMarketWire.com

[tim 3] 21/2/2017 16:26

Biggest volume of this year too.

[bakunin] 21/2/2017 16:24

well, it resolved as I thought.
It's now back in a previous trading range between 530 and 620.
Investors who were waiting for ridiculous lows will now want in, pushing it up through that range.
Swing traders will also notice the massive bullish engulfing and see a long entry signal as well.
600 looks like a reasonable area to be in prior to the results announcement.

[racg] 21/2/2017 12:52

£6 2ND QUARTER INDUBITABLY

[racg] 21/2/2017 12:52

£6 2ND QUARTER INDUBITABLY

[tim 3] 21/2/2017 12:21

Buyers come in at/just under a fiver again,becoming solid support.

[bakunin] 21/2/2017 11:21

Up on a "bad-news" day = reversal of trend

[bakunin] 21/2/2017 11:13

US futures pointing to all speed ahead today.
A massive bullish engulfing is on the cards for CPI.
Investors who have been watching this for months waiting for the best bargain possible must be getting itchy fingers.

[bakunin] 21/2/2017 11:07

Alternative view on why they would announce something apparently negative and yet innocuous days before the results: aren't private equity groups rumoured to be sizing Capita up? A pristine clean slate of accounts is what they first want to see, isn't it?