Capita Share Discussion Threads

[ernestsyngen] 01/2/2018 20:14

I have a Buy order in for 70p

What a stinker

[kirk 6] 01/2/2018 20:13

This could also bounce very hard now as we have dropped massively and overdue a technical recovery Expect over £2 tomorrow

[ibuyland] 01/2/2018 20:05

Crypto, this could be £1.40 tomorrow, and the RI will want a discount to that, and the downward spiral continues, the board have to make the tough decision now to shore up the balance sheet, and that is only going to happen at a deeply discounted RI price. Once they have the £700mn, the pressure and uncertainty is off and the Board can concentrate on the future.

[cryptotrade] 01/2/2018 19:50

Ibuy, can't seeing it hot a £1. Maybe £1.40. depends what they announce and when. It's all about the impact on revenue and the risk reward for those stumping up 700m. I may want a £1 knowing £2 is achievable in the short term.

[cryptotrade] 01/2/2018 18:27

Its time these contracts were taken back under government control. Trains, buildings, its all wrong.

[ibuyland] 01/2/2018 18:27

They need to announce a rights issue at 40 or 50p and get the pricing uncertainty out of the way and concentrate on sorting out the company. The shareholders are going to have to take the pain. Once these drop below 1.30 making the valuation £700mn, every drop after that means the shareholders funds are getting diluted by more than 50% when the RI happens, if it happens.

No rights issue is going to happen when the price is so volatile, and they are going to want at least 30% discount to the market price at the time when it stabilises.

It wont go bust but the shares will be sub £1 soon.

[cryptotrade] 01/2/2018 18:26

forgive me SSR23,

why buy and be down when the warning signs were there mate. You projected that view on EPO, yet here you've not taken that view.

Good luck, I'd not hold as they will be diluting heavily at a 1b market cap. Will never go back up to the levels it once was. You may get double, but that's it.

I'd sell up, the selling has not stopped and the shorters have not stopped.

[eisler] 01/2/2018 18:07

100 by next Wednesday, and settle at 50p ish by mid Feb. Company is finished and become toxic - CEOs gamble has not paid off.

[abbotslynn] 01/2/2018 17:54

The Tory party did not lose the last election,they did have the largest number of MPs despite Labour conning people and then saying they could not afford it.

[cautious7] 01/2/2018 17:49

I was thinking of buying and putting in a limit buy at 150, but never did. Though shares touched 152-ish, I will stick to shares I am familar with as this one is like trying to catch a falling knife.

[notimpressed] 01/2/2018 17:29

kingstn78
"Many directors have forgotten the business theories that they had learnt at universities. Shame on them for creating the mess."

disagree,they learnt to keep lining their own pockets, whilst everyone
else gets shafted.

[peach] 01/2/2018 16:41

Net debt was 1.6bn at end June 2017 - but they get c800m from recent asset sale, £200m from no div in a calendar year and c 700m assumed rights issue – so pretty much debt free a year from now.

assume free cashflow of 300m - dilute by 40% for rights (I accept some variability here if share price keeps falling) and you still get to a 16% free cash flow yield on a debt free company a year from now.

Agree that they probably won't win much business in the next year or so. But a year from now they will have a better balance sheet than most of their peers and arguably in a better place to win business having taken the tough calls early.

CEO has form. Business has long term contractual income in place. And they are cost cutting.

I don't think this will go bust. I think this looks interesting. But I probably have a longer time frame than most posters here.

[ssr23] 01/2/2018 16:39

Cryptotrade - yes, I am down. Just about everyone is, atm. I bought in two tranches yesterday and looking to hold for a few years, so not sweating over the drop today. May average down.

CPI doing the right things. Turnaround companies are always tough to hold when nearly everyone is bearish and the share price takes a pounding, but I am optimistic the new CEO will successfully implement the plan.

[brad1] 01/2/2018 16:26

Smithless - they still have to pay interest on bonds. What is the coupon yield? Cannot see how this is oversold - too much debt.

[tim 3] 01/2/2018 15:48

So many unknowns the rights issue price , future dividends, new contracts it's a pure gamble at present as market attempts to re value it.Would not be surprised to see them go under £1 though.

[cryptotrade] 01/2/2018 15:47

SSR23

Odd you'd buy this tripe when the signs were BAD. Seems you are down. not a good move.

[jomac2412] 01/2/2018 15:07

Lemmings jumping in at 1.52 ..............

[smithless] 01/2/2018 15:00

Way oversold - still generating good levels of cash and major part of debt its bond not repayable until 2027. Much of bank debt to be repaid via right issue. Too much of a political hot potato to fail - Carillion major egg in face and can't allow another

[kingston78] 01/2/2018 14:54

Witness the downfall of Carillion, but many investors were still in denial at the very late stage. Carillion said that it would take 2 to 3 years to turn it around assuming full support from all stakeholders. Management was too optimistic. I said that the new CEO would be the undertaker.

The underwritten rights issue will probably be taken up by the lead banks who have guaranteed it, and they could potentially become the largest shareholders of Capita. We do not know at what price the rights issue is going to be priced at. I think it is a floating target depending on how the market reacts, with a wide range.

The market cap of Capita will fall below the £700 million rights issue money. Even with that amount of money the Company will still carry a lot of debt. It will take at least five years of favourable trading conditions to sort it out, in my opinion.

No one should ever try to catch a falling knife. Some people never learn and thought 200 p yesterday was cheap, not knowing that it could become cheaper by the day.

More profit warnings will be announced with delay in disposals and at the expected price. Reorganisation will take a long time for a complex organisation.

Many directors have forgotten the business theories that they had learnt at universities. Shame on them for creating the mess.

[ibuyland] 01/2/2018 14:45

Think Tesco and Ashtead, sill got the accounting issues that will probably arise, a re statement of profits, blah blah. All the real bad news starts coming out now.