Capita Share Discussion Threads

[ibuyland] 04/4/2018 10:08

This is going to be a 10p emergency rights issue to the bondholders, it is the only way they can guarantee survival of the company after the goodwill write downs, the accounts are going to be horrendous, and no one can do the rescue package figures on a tuesday to find the share price has dropped 15% by the friday.

Its an Ashtead, its an RBS, the bondholders and banks end up with 90% and the current shareholders get stiffed, its a well trodden route.

[cantrememberthis2] 04/4/2018 09:11

oversold and im in big. no RNS from majors selling.

Game on.

Big consideration: Rights Issue being announced 26th April means they have a handle on the assets they need to sell... I suspect the delay was due to that.

[orinocor] 04/4/2018 08:49

Bounced off 130p but still looking very weak.

[bookbroker] 04/4/2018 07:37

Real Marconi job!

[bookbroker] 04/4/2018 07:36

No chance, as stated in report, precise quantum to be determined, and the £700mln standby funding agreed only in principle, the price not determined. The way the share price is going it will be a ten for one at 10p a share when the valuation hits £1!

[forwood] 04/4/2018 02:09

Or, they do not discount the shares at all! The rights issue is guaranteed, so why discount it?

[ibuyland] 03/4/2018 22:06

Mkt cap is £880mn now, £1.20 equates to around the £700mn mark. If the RI is priced at 50p, they are going to have to issue around twice as many shares as are in issue now, anybody buying now is essentially paying 1.30 to have that turned into a third of its value as soon as the shares issued at the RI are traded, as there will be 3 times the amount of shares in issue as there is now.

Can Capita be fixed? Announcing the RI without any detail could prove to be the final nail in the coffin. At least KPMG wont be allowed to be the liquidator.

[kingston78] 03/4/2018 21:23

Some people or speculators don't realise that Capita has a negative balance sheet as at 31/1/2018 and loaded up with huge debt. The rights issue and disposal proceeds from sale of some businesses will chip away some of its debt mountain, but it will still be in debt.

If the whole group were to be broken up and sold it will fetch sufficient amount to pay off its creditors, leaving nothing to the shareholders.

[cantrememberthis2] 03/4/2018 18:55

I note from recent comms (email) that the size of Rights Issue is only determined by understanding the value of assets to be sold etc.

TO ME this is a massive BUY imo:
News will need to be out to determine the asset sale prices as THIS DETERMINES the size of the Rights Issue amongst the pension deficit etc.

gAME ON!

[blueball] 03/4/2018 18:34

Stay short.

[eisler] 03/4/2018 17:54

£1??? No chance of that! You'll be able to buy them on the open market for 100 by the end of April - possibly sooner

[orinocor] 03/4/2018 16:28

has the price of the £700M funding been leaked. 1 pound perhaps?

[ltcm1] 03/4/2018 16:20

Then why does Neil Woodford say Capita is a fantastic investment???

[orinocor] 03/4/2018 16:12

The balance sheet is very scary. There is nothing there to support the share price if trading deteriorates further

[essentialinvestor] 03/4/2018 15:52

CPI made some investors extraordinary returns over a 20 year timeframe.
Unfortunately those in more recently have been hit.

[kingston78] 03/4/2018 15:27

134 p was holding several times, but it will break downwards. The dam has burst and sellers have the upper hand. Only very stubborn people insist to hold from the 200 p level. They will see the investments halved from that point.

For those who had bought at 1,200 p you will join the 90% club soon (ie 120 p here it comes)

[minerve] 03/4/2018 14:05

GOING DOWN!

Wonderful casino stock market we have! Enjoy! ROFLMAO!

[bc4] 03/4/2018 13:37

Very that Sad some people enjoy other people losing money I wonder what makes them tick

[ltcm1] 03/4/2018 12:51

Well I bet Woodford wishes he could have exercised his at 200.

Now he faces the prospect of having to double his stake.

[abbotslynn] 03/4/2018 12:21

I'm down into stop loss territory now

[fenners66] 03/4/2018 12:19

Well I said when they announced an underwritten rights issue - bu without a price - that I could not see how it was going to work.

Clocks ticking and still no more news - I have not changed my mind.

[ny boy] 03/4/2018 10:59

Looks to be heading the same way as Carillion, one to be avoided.

Worth watching Carillion Board being grilled by The Select Committee, what a shocking insight of total mis management whilst they all pocketed millions personally, of course they are desperately sad at the outcome of employees, pensioners etc

Lock them all up in The Tower and throw away the key imho

[ibuyland] 03/4/2018 10:43

Market cap under £900mn now.