Capita Share Discussion Threads

[cantrememberthis2] 06/3/2018 14:42

Dropping on low volume, algos in charge

[cryptotrade] 06/3/2018 14:39

thanks Younasm.

[ibuyland] 06/3/2018 14:10

Mkt cap nearly undera £1bn now, the £700m rights issue, is going to be a massive dilution.

[cantrememberthis2] 06/3/2018 14:01

I am buying, got shedloads... still happy to add and will take up rights.

[mj19] 06/3/2018 13:58

Anyone buying or people waiting for RI and accounting update

[ibuyland] 06/3/2018 12:04

There will need to be a massive write down of the goodwill on some of the acquisitions, and that goodwill has been allowing the dividends to be paid.

[catscats] 06/3/2018 11:43

Company would be considered insolvent on current debt ratios so the rights issue is a rescue job. Anyone putting fresh equity money in would require a deep discount to account for the risk....is that risk reflected at these prices...? v tricky to know..

[gregpeck7] 06/3/2018 10:21

Depends on the terms. Pfg which had also been caned doubled in price on the back of its rights as it was better than expected. This was 12 quid a year ago.

[bricktycoon] 06/3/2018 10:05

There holding the results back because the company is a scandal

[mj19] 06/3/2018 09:54

I think this will be fine unless their is an accounting scandal

[wonder4] 06/3/2018 09:54

Forgive ignorance, will rights issue pull share price down? If so, any clues to what level? Cheers

[gregpeck7] 06/3/2018 09:51

Ok.... If you say so.. I would prefer to say its now priced in.

[bricktycoon] 06/3/2018 09:49

hahahahahah recovery its all but bust right issue will all but wipe shareholders out zero

[gregpeck7] 06/3/2018 09:46

around here looks a decent entry point. Could be a great recovery story from here.

[blueball] 06/3/2018 09:14

stay in cash.

[paddyfool] 06/3/2018 08:49

There is no need to buy this ahead of the rights issue. Unlike PFG there is nothing that is cash generative in this business where a cash raising will help. The cash raising is needed to pay down the debt. Even then there is next to no cash generation once they are free from the debt, or at least more free from it. They must now be sailing very close to their covenants on that debt. Its now a waiting game for the capital raising to be done in such a way that the debt holders, the participants in the placing, the book runners and the board are all happy. Its an increasingly tough equation with the continuing collapse in the share price. Add to this that the year end accounts will probably need more write downs and its v ugly.Its a situation where you need to be very brave to catch the falling knife. There are just too many better opportunities, those waiting for a PFG type announcement will be disappointed. There is no magic button here and there will and can be no immediate trading improvement. It has absolutely no similarity with PFG.

[bricktycoon] 06/3/2018 08:38

this is going to pennies very soon board holding back results to get what they can before the game is up sell sell sell

[younasm] 06/3/2018 08:28

I am just a part time shares trader. Use IG for shorting shares outside FTSE100 and traded options for medium term strategies. Mainly writing options when there is good volatility.

[diku] 06/3/2018 08:25

Morale of story post 2417 is...they are one time performers...but media journos pump up their credibility from past performance...keep the storyline going...

[bricktycoon] 06/3/2018 08:18

This is going bust very soon massive debts fat cat board no results shareholders are toast once 150 is gone this will turn into a penny share very quickly sell while u can sell sell sell

[cryptotrade] 06/3/2018 08:10

Hi younasm,I agree. Who do you use for shorting.

[younasm] 06/3/2018 07:57

I closed my short positions yesterday - I think there might be temporary recovery back to 180p. Hope to short again.On the buyside, there is no rush, best to get the rights issue out of the way and consider averaging in over couple of years - assuming the business gets a good clearout etc.I bought and sold Marconi many times - it was clear in the last 12-months they would be worth nil.Good luck

[cantrememberthis2] 06/3/2018 07:57

Fair enough, accounting trick or not... happy to lose the lot. Doesn't bother me. Shorts serve their purpose but boys they get it wrong: PFC, PFG, GFS, endless list... Fear and Greed are two sides from the same coin. Happy you all sit on the other side. GLA whatever happens. Sneaky suspicion pension deficit will be drastically reduced based recent hints

[paddyfool] 06/3/2018 07:53

That profit is an accounting trick, its the cash generation which is broken and needs fixing. Whilst it isnt fixed there is no under pinning. As for People, Process and Technology....they have People, they have some process, they own very little technology IP. It is technology ip which is needed to sell at value and retain existing customers. It was the underlying IP which protected Xchanging and which led to a half reasonable exit though that took over five years to get to.

[cantrememberthis2] 06/3/2018 07:24

I am buying, look at Ocado didn't make a profit for ages yet value was always multiples. Lots of companies like GSK have a mountain of debt and still valued higher... This company has people, processes and technology (PPT) as an offering so whether you are on the buy side or sell side. I am in for the intrinsic value. They are anticipating to make about £270m profit before taxes. Have an underwritten rights issue and also reducing their pension deficit. For me its a risk worth taking.