Capita Share Discussion Threads

[cantrememberthis2] 05/2/2018 10:53

180p on the cards, nice 3 day W shape forming

[cantrememberthis2] 04/2/2018 16:25

ive had comms from the company... v.content this will do ok in the medium term. Rights issue underwitten so money in place. All noise, will be adding. £1 or £2, still a buy for me, pension deficit could be a nice suprise as it seems a priority...

[jonwig] 04/2/2018 15:38

kingston - you may be right on lots of that, but why should the price of the rights issue have any relevance?

As I've said earlier, they want £700m and have about 700m shares in issue so holders will be asked for 100p for every share they hold (underwritten). Does it really matter how that's priced up? And of course if you don't want to participate you can sell the nil-paid or lapse them and get a cheque.

[kingston78] 04/2/2018 15:13

The UK stock market will fall from here. The cycle of boom and bust has shortened to about 10 years. The last financial crisis happened in 2008.

Certain sectors and some companies, in particular those with s strained balance sheet with lots of worthless intangibles, will be hit very hard.

I expect Capita's share price will fall sharply from here as negative momentum gathers pace until the pricing of the rights issue is determined. My short term target is £1 a share.

[mj19] 04/2/2018 14:19

Woodford explains - https://woodfordfunds.com/words/blog/capita/

[blueball] 04/2/2018 11:57

stay short.

[dtaliadoros] 03/2/2018 19:20

This one is going to get a lot messier before it gets better....am not going to allow this one back into my portfolio for a good while yet.

[ltcm1] 03/2/2018 16:26

They haven't been making profits from these contracts either, the growth has come from acquisitions.

The whole sector has the same problem. Not easy to see recovery if margins are falling.

[tim 3] 03/2/2018 16:10

And let's not forget even without the negativity that will almost certainly surround the company with this very public situation,they have still been struggling to keep contacts let alone gain new ones for the last few years.Surly that will be even harder now.

[bountyhunter] 03/2/2018 15:42

Agreed Eisler, although many staff would be very happy to move back to their original more secure e.g. local government employers if contracts had to be taken back in-house. The same experienced staff would still be required to keep essential systems and services up and running.

[eisler] 03/2/2018 14:26

Exactly Tim - it's the perfect storm. New clients will be wary of using CPI, current ones will be looking to move contracts or take stuff in-house, suppliers will be nervous that they will not get paid by them, employees will be demotivated and nervous, with the best ones moving on, shareholders will be reluctant to throw good money after bad, the media hates them, half the House of Parliament hates Capita, some local councillors dislike them, some of the general public has developed a mistrust and disliking of outsourcing companies. The CEO has taken a huge all or nothing gamble - and, sadly, I don't think that it will pay off.

[tim 3] 03/2/2018 11:42

Question is even if everything goes ok and they get themselves sorted out how are they going to start winning contracts and return to growth again?

[jonwig] 03/2/2018 11:19

Here's Woodford's comment on Capita, from yesterday;



@ fenners, post #2317 - assuming they want £700m the actual price is irrelevant to underwriters: that's the figure they will, potentially, be in hock for.

From the pov of the investor, unless the price is deeply discounted it might be thought not worth going for. Since the current MCap is £1,100m (on 670m shs) I reckon 1-for-1 at 100p wouldn't be as acceptable as 2-for-1 at 50p. [Rough figures.]

Mathematically, for every £1 you hold in CPI shares, you'll be asked to subscribe for 64p worth of new shares - it doesn't matter what the price per share is. And of course you can sell your nil-paid in the market or have the company do it at the end.

[abbotslynn] 02/2/2018 21:57

Was worth the investment yesterday,how long to stay in is the question now.

[ltcm1] 02/2/2018 19:05

Both the gov't and the Capita board have a huge incentive to see the company survive. But for me that means the shareholders will be the funders.

Capita could end up being an RBS job. Too big to fail, effectively nationalized, shareholders wiped out.

[sippguru] 02/2/2018 18:25

Well that post will really help them sell the not good bits off wont it??? who in their right mind would buy bits knowing they're naff?

[ch1ck] 02/2/2018 16:25

I met with a group of guys last night from Capita and obviously that recent events was the topic of conversation.I worked there for 9 years across many divisions.Non of them was particularly worried and new about the restructuring months before this announcement but not the detail or extent. They recon the good bits of the company are very good such as software development and others need to be hived off.My personal view is this company will be very volatile and could go either way but at these levels it's worth a couple of grand as a punt.I bought today and will just trade short term till the rights issue is announced

[forwood] 02/2/2018 16:09

I am not so negative Capita. This was always a finance driven company and very different to Carillion. They have taken action early enough in the business cycle to address the problems, though they've been mightily punished for it due to the example of Carillion.

What these public sector contracts companies are showing is that there is a fine line to be drawn between govt screwing them down to the lowest price and ensuring there is enough profit to deal with the vagaries of an uncertain market. Govt will be keen to avoid contributing to another corporate crash and this bodes well for future margins.

[sirrux] 02/2/2018 15:44

Has anyone seen the 5 year plan? Is it any good?

[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.