Capita Share Discussion Threads

[ibuyland] 22/3/2018 20:06

Going to be seeing a lot more of this, all the good ones will be getting snapped up as they avoid the uncertainty to come which is obviously going to harm Capitas employees pay and career ambitions.

hxxps://corporate-adviser.com/former-capita-tech-head-latest-smart-pension-hire/

[abbotslynn] 22/3/2018 14:10

Holding up well given the problems

[mj19] 22/3/2018 12:32

Being held up!! That's nice

[ibuyland] 22/3/2018 10:36

The valuation of Capita is now less than a billion, against a rights issue of £700m.

[kingston78] 22/3/2018 10:32

The 156 support level has now been broken. The shares are going to move down towards 140 (the bottom of 160 - 140 range) soon before a sharp dive to 120 when the rights issue and annual results are announced.

Capita is not like Interserve. Capita has a very big debt mountain.

Referring to my last post about Conviviality, there are rumours that they are trying to raise money by placing shares at 10 p each (this will dispense with an expensive and time consuming rights issue document). Imagine that two to three months ago its shares were trading at over 400 p and brokers were still recommending them at 300 p. Now suspended at 101 p, just imagine how you feel when new shares are being issued at 10 p. A very desperate measure to avoid administration.

[cryptotrade] 21/3/2018 21:44

They're not. Another discussion.

[pal44] 21/3/2018 05:44

What is HPE buying these ?

[kingston78] 19/3/2018 23:38

The 156 p level was holding up well, but I think this is the beginning of a serious and sharp downtrend. Those who have not yet sold their shares will see the price fall below 120 when Capita joins the 90% club (from a high of around 1,200 p.) Anyone who disbelieves me will find out to their cost.

Digressing a little; the acquisition of Hewlett Packard Enterprise by Micro Focus recently is a classic example of how management completely messed up their company by over ambitious plan to expand for the sake of expansion. What due diligence did take place so soon after an acquisition to announce a declining growth lower than market expectation by a big margin. Its share price fell more than 50% at one point today. The company should rename itself to Lack of Focus, as £4 billion has been wiped off its market capitalisation.

Sometimes it is better to do nothing, but senior executives like to make their mark so they venture into something risky. They have made up their mind before they embark on the acquisition, so when a dud comes along they will still buy it. Those people are too vain.

[blueball] 19/3/2018 10:25

100p very likely here a pint of wherry when it does.

[tim 3] 19/3/2018 10:19

Am very surprised they are not lower by now,someone trying to keep them up?

[mj19] 19/3/2018 10:13

I could be wrong but it looks that way! What's going to push this up short term?This is long term play after we get details about RI and asset sales?

[fenners66] 19/3/2018 09:07

So trading for small profits - works until there is a bad news leak....

[mj19] 19/3/2018 08:53

I think people are buying now when low and selling each day when it comes back and few pence

[mj19] 17/3/2018 17:53

Up everyday nice

[kingston78] 16/3/2018 22:40

No one wins all the time. That is a fact. When one loses one should know when to exit in order to salvage some value before it is too late.

Digressing a little: a drugs company called Vernalis, backed by the fund manager Neil Woodford has put itself up for sale. Shares in Vernalis are tightly held by Woodford Investment Management and Invesco Asset Management, which between them hold 67% of the stock. The shares have fallen 92% over the past two years. Yesterday its share price went down by 1/4 p to 3 3/4 p, valuing Vernalis at about £21 million.

You get the message. The stars have fallen.

[younasm] 16/3/2018 16:26

Shorts were closed this morning - will go short again next week around 170p

[kingston78] 16/3/2018 12:53

In terms of share price movement and charting, my interpretation of Capita's share price is in a 20 p range, down from 200 - 180 and then 180 -160. It has recently broken through 170 but has since died down. This means that the 160-180 range will be broken because there is insufficient support. Some traders may make money very short-term and then move on.

This morning the share has touched 156 twice, and it would appear to me that in the immediate short term 156 is sustainable.

However, I think the share price has dropped a range to 160-140. As we approach towards end of March I suspect that there will be nervous sellers driving it down towards the 120-100 level, at which I think the rights issue will be priced.

I did advise holders to sell their shares all the way from the 200 p level. I think this is probably your last chance to sell at 156 -158. The share price will not recover to this level for a few more years.

[kingston78] 15/3/2018 23:03

As foreshadowed Capita will still be in debt, plus large pension deficit, even after raising £700 million by way of rights issue and another £700 million by disposal of six or seven businesses. A slimmer Capita will struggle to earn sufficiently to produce impressive Earnings Per Share (the number of shares in issue will increase by at least 50% from the current level, and it will not be able to pay meaningful dividend for three to four years.

Neither will it be a dividend stock nor a growth stock. Those large investors, including some famous fund managers will live in denial that they have made a mistake by investing in Capita. Consequently, investors who have invested in their funds will suffer.

As suggested quite some time ago Capita will probably announce their 2017 annual results together with the rights issue document by the end of March. We don't have long to wait. Bondholders of £1.6 billion will exercise their influence as to what businesses should be sold off and how their bonds will be repaid. Some will convert part of their bonds into new equity, however, they will lose income for a few years, as there will be no dividend. They would rather stick to their guns and ask for redemption of their bonds from the new money raised.

Whatever talents that are left will be guided by the new Chief People Officer. I don't expect the new CEO will stay for too long; maybe two years at most to see through the disposal programme and claim some credit for his work. However, I don't foresee Capita will grow into a strong force that it once was.

[mj19] 15/3/2018 13:42

Going up everyday

[dexdringle] 14/3/2018 13:33

Kingston78 - is it being so cheerful that keeps you going ?