Capita Share Discussion Threads

[1retirement] 23/4/2018 08:34

The rights issue was at 70p?! Does that not tell you pretty much what is needed te know about where the share price should reasonably be?

[nigelpm] 23/4/2018 07:53

I'm a huge bear on CPI but this looked reasonably upbeat - funding sorted, some disposals and no worse news.

[only who?] 23/4/2018 07:50

We need optimism around here!

[nigelpm] 23/4/2018 07:46

180p at a guess

[only who?] 23/4/2018 07:40

Opening price??

[r ball] 23/4/2018 07:27

Yup. Take some time to digest these shares. £1 he we come. IRV read across anyone?

[r ball] 23/4/2018 07:27

Good luck with the £300m of disposals. Who would buy?

[cantrememberthis2] 23/4/2018 07:23

70p rights issue - woah

[marles] 22/4/2018 21:16

Could just be speculative buying to start with and others see the price rising and jump in thinking it is insider buying.Cant see rights issue shares being much more than 100p each.This will drag down share price.Dr Lewis will put an optimistic spin on things (spin doctor?) but 120p seems fair value IMHO.I would only change my mind if the good doctor bought a load of shares with his own dosh. Somehow I doubt that will happen. Most CEO's like a free ride.

[paddyfool] 22/4/2018 11:55

Its also the 'other' things which will be announce which will be interesting. Lets say there is a further £700 million of debt for equity as has been mentioned. Then if we assume the share price remains as it is the market cap would be £2.4 million. Lets assume that the underlying profit is £270 million as mentioned in the article then the market cap is around 9 times profit. For a business visibly in decline and not growing but shrinking, Huston we have a problem. In the dark days of Xchanging the ratio was around 1.5 and that was with a business throwing off cash at almost 100% of profitability. Capita are no where near that.

We also may hear of some additional disposals, these are likely to be the cash generative parts of the business, as there will not be much of a market for those elements of the company which are not.

The days of Capita winning new massive long term contracts are over. So the question is what will the new Capita's reason for existing be? It doesn't have a domain which it dominates apart from Government, and Government has a shed load of policies which now mitigate against awarding big contracts, and especially awarding them to the likes of Capita. They now operate a very positive discrimination to the smaller players. So if you are going to invest in this company, ask yourself what do you think their reason for existence is and where will the growth come from?

the door is that way!

[dealy] 22/4/2018 07:43

It says "up to" 700m. It's not an emergency. Companies regularly do this kind of thing and it doesn't mean the equity is worthless

[bigbigdave] 22/4/2018 07:07

Jon Lewis, new boss of troubled Capita, to tap shareholders for £700m

[eisler] 20/4/2018 20:04

Movement this week suggest that something is afoot.

[dealy] 20/4/2018 19:32

Not every capital raise is a guaranteed money maker for shorts. The company is not in an emergency here. It will likely do a roadshow to investors explaining the opportunities. Demand could be strong. Once complete the company will thrive

[inthemix] 20/4/2018 17:43

What is generally the rights issued at? Like 10-20% discount? An if this happens how much money would they try and raise? Everything is screaming short here but it continues to rise!

[tim 3] 20/4/2018 09:05

Whatever bank underwrites the rights issue you can be sure they will have terms to ensure they make money from it.

[dealy] 20/4/2018 08:51

There will be plenty of interest to put equity into cpi given that the very act of strengthening the balance sheet will greatly improve its prospects

[harvester] 19/4/2018 14:33

which bank will dare to underwrite the rights issue, if any, and on what terms I wonder

[frazboy] 19/4/2018 10:51

there will be a rights issue.

[abbotslynn] 17/4/2018 20:28

Gaining ground very slowly,slowly

[inthemix] 13/4/2018 15:47

Yep bad decision to short! It's closed now ":'^(

[dealy] 13/4/2018 13:56

No need for RI if it's gets acquired

[marles] 13/4/2018 12:37

Insiders getting a sneaky early peek at plan to be published on the 26th? Price of rights issue seen?