Capita Share Discussion Threads

[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!

[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.