Capita Share Discussion Threads

[bookbroker] 30/9/2016 15:58

Outsourcing will continue to drive corporate returns, a short term blip exacerbated by Brexit, however that should be immaterial, this is a global entity, with long term relationships, they need t adapt and evolve quicker themselves, but the price crash is in part due to delayed deals, rather than a fundamental change in procurement practices, a takeover target they will become the themselves if not!

[salpara111] 30/9/2016 13:03

The chart suggests a retest of the £6 support.
I would certainly take a bite at that level.

[thebullyboy] 30/9/2016 11:47

Got in at 659p, this could easily recover to 700p+ in the short term.

[tim 3] 30/9/2016 11:24

Seen situations like this before if there is a fundamental change in the longer term outlook then could be time to move on but to me it looks like an over reaction to a disappointing update.

Cant remember last time they yielded 5% in these markets a yield like that should get some interest (provided its not cut) once the negativity around the shares lifts.

Sitting tight.

[return_of_the_apeman] 30/9/2016 11:06

Broken downwards 3 year chart :-(

[sammarcwhite] 30/9/2016 10:25

Revised organic growth down...which will mean they will make further acquisitions to diversify and achieve growth for shareholders. With somewhere in the region of 500m of cash and a history or acquisitions...it's easy to see that Capita will diversify out of this exposure to expenditure delays, public sector and brexit issues with some careful, well placed acquisitions. They have a history of buying well, at medium-sized deals and often pay a realistic multiple.I see this dip as an overreaction and a good time to buy in my opinion.

[minerve] 30/9/2016 09:48

Obviously the DB and Brexit scaremongering is getting to the analyst.

[minerve] 30/9/2016 09:48

Personally I think that new price target by Panmure Gordon is ridiculous.

[ronhill1] 30/9/2016 09:39

The other broker view this am.

30 Sep 16 Capita Group (The) PLC Panmure Gordon Sell 672.25 900.00 530.00 Downgrades

[minerve] 30/9/2016 09:28

Personally I think this stock is one of the best available on the FTSE 100 at present.

Broker upgrade today:

Numis 30/09 Upgrades

From Hold to Buy
Target price 890.00p

[tsmith2] 30/9/2016 09:04

At £7 a pop?

[patientcapital] 30/9/2016 08:52

16000 shares. Token.

[tsmith2] 30/9/2016 08:49

Token?Add them up

[patientcapital] 30/9/2016 08:39

Token director purchases don't convince either. Further downside I suspect simply continuing the negative trend established over many months.

[edmondj] 30/9/2016 08:32

Dilemma that the balance sheet - whopping intangibles besides the debt, negative net tangible assets - is no source of comfort during a downturn, and may exact a higher dividend yield (via the stock price) to compensate for this risk. Such a factor being hard to quantify.

[minerve] 29/9/2016 16:15

Net debt isn't expected to change. June to December. Global economic issues play into Capita's hands - companies drive for margin and efficiency lead to outsourcing where there are economies of scale. I still expect growth and dividend growth. If world economy worsens then no company will be exempt from the downturn. Capita would still be a stock to hold. IMO.

[bookbroker] 29/9/2016 16:06

Some recovery likely, but the Brexit and global economic issues have only just started to bite here, dividend yield still only five per cent, hardly supportive, and debt issues could become a huge issue here!

[minerve] 29/9/2016 16:04

Well, I've doubled my holding here today. I see no reason for this magnitude of fall and no reason why there should be a rights issue when the share price is currently where it is. So sticking with my conviction and doubled my holding.

[tsmith2] 29/9/2016 15:52

Lol, yes absolutely

[its the oxman] 29/9/2016 15:50

Is a rights issue really on the cards here? Would in part explain the severity of the fall.

[tsmith2] 29/9/2016 14:11

in, churn should finish soon

[minerve] 29/9/2016 13:07

Dividend well covered by earnings too.