Capita Share Discussion Threads

[brad1] 31/1/2018 10:04

Has Lewis got any experience of turning companies around? He worked for halliburton and AMec (FW), so doubt whether he has. Mammoth task!

Another company that looks doomed is Mitie. Again what are management doing!!

[asagi] 31/1/2018 10:04

I think this might be more than a kitchen sinking. I expect (on no information whatsoever) that they have been told that to win significant government contracts in the future, they will need a better balance sheet.

I've taken nigelpm's 'advice' and sold.

Asagi (no position)

[seastork] 31/1/2018 10:03

This is heading down to 100-150p and will be down there for the foreseeable future (3-4 years, you can view Tesco as a recent comparison). Suspension of dividends and Carillion folding has knocked the confidence out of this selection and sector. Had hoped a recovery was on the way and that new contracts would be announced, however, with this news are they likely to win any new bids.
(Political changes could finish this sector off).
Personally entered earlier this month at 393p and seeing a 50% drop, know there will be people out there feeling more pain. Only have a small exposure to overall portfolio and prepared to be that bunny caught in the headlights and hold for the moment.

[tim 3] 31/1/2018 10:01

Yes he has been adding most of the way down too!

[marmar80] 31/1/2018 09:47

They should have announced the dilution details today. Now investors will be waiting for the announcement that most likely depress the price further.

[fillipe] 31/1/2018 09:41

now down to 192/3p....

f

[tim 3] 31/1/2018 09:39

I used to rate him ,a lot, as his track record over several decades is pretty good.

However over the last few years I have read a lot of his statements about some of his investments and it really does start to sound like he is reluctant to accept he has made mistakes and keeps adding when they don't go his way.

[nigelpm] 31/1/2018 09:33

RE: Woodford - the problem when you have such a large holding is it's incredibly hard to do anything other than muddle along and hope things improve.

Anyone who took one look at the balance sheet of late will have been in total agreement with the bears and the large short position.

The shorts can now unload in the rights issue so any bounce is unlikely to be material.

Shorts 1 Woodford 0

[bookbroker] 31/1/2018 09:26

He either has to stump up big time again, or see his holding severely diluted, I see him making an exit, the size of his holding a huge obstacle to a clean exit, he has become overcome by hubris in the last few years, and his choice of investments now relies on making large bets in seed companies, and new listings with no track record, PURP. has been a good investment, but is that what investors in his funds require!

[tim 3] 31/1/2018 09:22

tim 330 Jan '18 - 14:02 - 2063 of 2089 Edit
0 1 0
Getting close to a double digit yield either market has this very wrong or there is trouble ahead.


Looks like it was the latter!

Truly awful update and divi gone.

Woodford credibility takes a serious beating now imo not so much for the initial holding,we all make mistakes but for continuously adding and saying everything was good with the company.

Would expect further falls can see no reason to buy very uncertain future imo.

Sorry for those long but a yield like that is often a warning.

Some clearly knew what was coming.

[bookbroker] 31/1/2018 09:20

When I read the statement again, it appears more horrendous when you look at the cash outflow and the further one-off costs in relation to exiting businesses, costs related to initiating cones contracts and added costs to previous issues, coupled with total uncertainty of future contract awards it is difficult to see any real recovery for years, this is a hell of a web to untangle for Lewis, and I see more hidden costs, the sale of the company’s crown jewel was to provide capital to re-invest, this appears to have made no real impact on the surviving business, and the amount of capital raised may still not be sufficient!

[lucifer100] 31/1/2018 09:16

Down 39%...Another nail in the coffin of the construction sector .When EBITDA is mentioned in any company trading update—three times in this case-it’s time to get out quick!

[nigelpm] 31/1/2018 09:11

are these actions being overdone? Cut the dividend entirely and sell businesses and raise equity?

Not for me Asagi.

As soon as I read the RNS this morning my first thought was "Great. You'll likely save Capita from extinction"

I'd say they've probably sounded out the banks but no-one is interested in lending them more so rights issue the only way to go.

It's going to be painful for equity - I suspect it'll fall into the £1.50 area and then perhaps a rights issue at 80p?

But it avoids the worst happening.

It's not another Carillion - that's for sure.

At some point I expect it to be a good recovery play.

[tsmith2] 31/1/2018 09:09

another leg down?

[412069] 31/1/2018 09:06

Building company's and alike are already steering clear of the giant construction/service PLC's.
They are clever enough to realise you cannot rob peter to pay paul forever.

[hickool] 31/1/2018 08:59

No trust in management. Liars were covering up the real situation. This company will go bust by 2020 or end up trading at 50p/share.

[brad1] 31/1/2018 08:54

Is this one way the govt can cancel some of these costly PPI agreements! Food for thought.

[escapetohome] 31/1/2018 08:45

Solid con struction government contracts eh?

[paddyfool] 31/1/2018 08:44

The problem now is it will struggle with renewals and new wins. The share price will remain depressed ahead of the offering too. People will no longer want to work here either so it will lose staff. Unfortunately it will be the talented ones. It's very ugly working for a firm which is going through this pain. Whilst I don't believe it is doomed, I do believe that it is going to be a long journey from here.

[412069] 31/1/2018 08:37

People again incapable of running a business.