Capita Share Discussion Threads

[dealy] 27/11/2020 07:43

The main buying has been done by Schroeders (built up a 15% stake in recent weeks).

[hodhasharon] 27/11/2020 07:41

The problem with CPI is it's a people business. Requires bums on seats. There's never any real money in these legacy business models (albeit they will be essential services for years to come). CPI is a Blockbuster, not a NetFlix.

What you need is businesses that make the tech do the work, and require very few bodies to operate.

A lot of retail holders have bought into CPI over the past couple of weeks, many in the early 20s. They're holding now because they naively think this is going straight back to 150p before Christmas. Who's money will take it there? The pros will squeeze out any weak holders over the next few sessions. With each penny drop, the pressure increases......those 150% gains are now 100%.....75%......50%.

32p is the price I think the drop will stop as new bulls see value.

[jotoha2] 27/11/2020 07:40

Should open up at around 50p , deal confirmed next week and straight up to 80 ,fantastico.

[dealy] 27/11/2020 07:35

the margins are likely to return to normal levels when the economy stabilises. Meanwhile there is suddenly a huge availability of labour which capita can engage to deliver services. The debt will not be high once ESS has been sold

[bookbroker] 27/11/2020 07:31

No, it is a company operating on skinny margins with a very high debt load.

[dealy] 27/11/2020 07:29

what about the insane valuations of dozens of Nasdaq software firms?

[dealy] 27/11/2020 07:29

the company is not valued for receiving best price for anything. no good news is currently priced in. This is not some Nasdaq cloud services company trading at 40 times revenue

[hodhasharon] 27/11/2020 07:27

"There can be no certainty that a sale will be concluded nor any certainty over
the terms of any such sale."

It's not a seller's market at the moment. I suspect they'll practically give this away, probably hiding the news in the clear around Christmas/New Year.

Having said that, I'll be long by then (at 32p), and I'll be glad to see the back of this ESS drain on CPI resources.

[gozo] 27/11/2020 07:26

What you gonna do then shorters?....ha ha....should do 10% minimum today.

[bookbroker] 27/11/2020 07:21

One interested party, not sure if they will receive the best price!

[ttny2004] 27/11/2020 07:11

Value tracker- you 16p certainly wont be today. Also I would hate to be short. Think there will be a few burnt bears this morning.

[valuetracker] 27/11/2020 07:09

'Exclusive' because there is little interest. The fire sale continues. Gap up, suck more in, then drop.Schroeders sharing the risk around?

[dealy] 27/11/2020 07:09

obviously a reasonable indicative price has been tabled else the talks would not have gone exclusive

[ttny2004] 27/11/2020 07:08

Capita plc – Response to Media SpeculationEducation Software SolutionsCapita plc ('Capita') today notes media speculation regarding the potential sale of its Education Software Solutions ('ESS') business.Capita confirms it has entered into exclusive talks with Montagu over the potential sale of ESS.There can be no certainty that a sale will be concluded nor any certainty over the terms of any such sale.Any further announcement will be made if and when appropriate.This announcement contains inside information.

[dealy] 27/11/2020 07:05

exclusive talks confirmed

[sami69] 26/11/2020 23:30

Off-Book trades

Looking at the trade data on LSE website it shows 75% of trades were off-book i.e transfer of stock between parties. That is a very high percentage.

Looks like more accumulation going on?

[ttny2004] 26/11/2020 20:49

Your be waiting forever lol

[valuetracker] 26/11/2020 20:30

Wait for 16p Hod. 1.5BN debt, education business worthless, CFO done one, third wave C19.What's not to like?

[ttny2004] 26/11/2020 20:28

See all the doomsters arrive and will get in at this price, that price. Timber! Hope you are right because many will be adding I am sure including me. However, realistically don't think you will see those levels again and this is hopeful thinking trying to shake out any weak holders for your own gains.

[ceteri] 26/11/2020 18:59

Why do you think you will get a 32p re-entry? I sold my holding emotionally but bought back in again after things started to recover would be interested to know your view

[hodhasharon] 26/11/2020 18:51

I’m not happy with myself for bottling it at 40p, but at least it looks like I’ll get my 32p re-entry.

GLA

[pal44] 26/11/2020 16:23

VT I will buy these at 16p would it be long ?

[dealy] 26/11/2020 15:00

if you see the explosion in software company valuations that is taking place on the Nasdaq at present there is no reason why Capita cannot get over 500m for the ESS division

[valuetracker] 26/11/2020 14:37

Here she goes. Tick down imminent.

[valuetracker] 26/11/2020 14:04

It's about to get a whole lot worse for CPI bedwetters