Capita Share Discussion Threads

[fenners66] 02/2/2018 15:10

I don't get how a rights issue can be agreed underwritten if they do not know the price.
So either they do know the price and its a lot lower than the share price is now - or they know the % stake they are going to get and that must be huge.

Either way it does not bode well for current shareholders

[eisler] 02/2/2018 14:46

All of this noise is a stay of execution - CPI will soon burn the cash that they hope to raise and some clients will be jumping ship at the first opportunity - and new ones won't touch them. The good staff will already be updating their CVs. There is nothing going for them - the public and media hate them with a passion and half the house of commons have the knives out. Many loss-making contracts or those with skinny margins, demoralised staff - I really cannot see them pulling out of this nosedive.

[nigelpm] 02/2/2018 14:45

wow 3M buy

Might be Woodford's fund averaging down - in which case it's a bad sign! ;-)

[deltalo] 02/2/2018 14:44

Major share holders can say what they like as they would do in the predicament there in.There not running the business so have no control over it, only to pull back profit. Check out Wake up to money, 5am every morning on the bbc,as this was said this morning. It's fine saying were going to turn the business around but it's not the share holders that are running the business. There news has wiped off over a billion of the Share price so why would the loyalty of major Share holders state a positive view unless it's to try pull back some losses. Well it's not from my account. Another Carillion in my view, What a shame.

[brad1] 02/2/2018 14:24

I am guessing todays initial rise was a test of a 165p support level from back in 2002. Next support level is sub-100p (around 70-80)in 94/95. Providing we get some daylight from 165p then sub-100p here we come.

[leedskier] 02/2/2018 14:21

Like many others I have no position here, but as my daughter spent a year at CAPITA's head office after leaving Uni to gain experience with a FTSE100 company (as it then was) I thought I would devote some time to reading the RNS timeline since the heady days when the share price was 1300p.

A lot of the fall over the last 30 months seems to reflect sentiment rather than any specific event. Sentiment was not helped by revising down projected earnings in 2016 and 2017 and the costs of exiting some contracts. The company seemed to have a scatter gun approach to securing new contracts, regardless of the quality or margin of the contracts they were entering into.

The new CEO seems to have decided to shrink the portfolio and shrink the debt. I presume he would rather run a smaller less indebted company with a better margin than a larger company with larger debt and lower margin.

In some ways it could be high risk, because if this strategy does not work it could be worse off than it is now.

Unlike commodity companies which have found themselves in trouble over the last couple of years as a consequence of lower commodity prices, but are now coming back to life with improved margins, in this highly competitive technology sector margins are not going to be improved by external events. The only answer may be to slash and burn costs. In austerity Britain lean & mean seems to be the way to survive.

[tsmith2] 02/2/2018 14:11

Don't say at what price...

[ibuyland] 02/2/2018 13:52

I suspect we will find out a lot more in the sunday papers.

[ltcm1] 02/2/2018 13:49

Peach said they would be almost debt free next year. But if that was true why are they going for £700m? The underwriters fee must be huge.

If they are this desperate for money the problems must be vast.

[ny boy] 02/2/2018 13:07

Buy sub 100p, when a full blown market correction is underway, no rush here, they are already talking a 5 year turnaround story ffs!

[bbmsionlypostafter] 02/2/2018 11:48

Why would you want to?

[citytrader66] 02/2/2018 11:09

MM tree shake? soon dropped to the 155p level. anyone able to buy down there?

[hpcg] 02/2/2018 10:27

Share price would have dropped further without the RI being included in the announcement IMO. Yes it looks a bit suicidal not to name the price, but if 700 million is committed then the share price plus the rights value should equal the settling price. No interest either way here, I think I have probably missed the boat short and the recovery will take years.

[escapetohome] 02/2/2018 10:26

Dead cat bounce?

Initial euphoria evaporating

And fast it would seem!

[tsmith2] 02/2/2018 10:20

Expect another sharp leg down, seems to be running out of puff. no position

[mally6] 02/2/2018 09:18

Shorters worried now will need to close expect some share price lift

[eisler] 02/2/2018 08:40

Is that minister worried about another provider going t!ts up and government's active hand in engineering their downfall, perhaps?

[kamitora] 02/2/2018 07:37

No position here just posting from the wires for your information:

Capita Plc : Cfra Research cuts target price 200p from 440p
Capita Plc : Jefferies cuts to hold from buy; cuts target price to 200p from 750p
Capita Plc : RBC cuts target price to 185p from 500p
Capita Plc : Stifel cuts target price to 215p from 415p

To note: brokers were wildly wrong before Capita's attempt at RNS suicide so pinch of salt time.

[bigbigdave] 02/2/2018 06:23

@PaulJKavanagh

Capita shares have no floor. Now trading down 15% and value the company at just £1bn. The CEO was candid in the work ahead, but by leaving the door open on the equity raise timing, it has created one way traffic for the shares. It needs £700m, and the dilution is significant

[ibuyland] 02/2/2018 00:18

They have goodwill of £1.5bn? Not any more. Take that out of the market cap of £1bn and Capita are negative £500mn.

When you dissect it all, they turnover a lot but it costs them more to do it.If this hits 10p I wouldn't be surprised.

[still waiting] 01/2/2018 23:01

No way will this be saved with a good price for shareholders.

Ain't gonna happen with another big pension hole opening up for the ppf.

The system is broken, the dominoe effect from this will be worse than the banking crisis as more staff.

[elmfield] 01/2/2018 22:33

But it should never got to the stage of needing an emergency rights issue.