Capita Share Discussion Threads

[kingston78] 15/3/2018 23:03

As foreshadowed Capita will still be in debt, plus large pension deficit, even after raising £700 million by way of rights issue and another £700 million by disposal of six or seven businesses. A slimmer Capita will struggle to earn sufficiently to produce impressive Earnings Per Share (the number of shares in issue will increase by at least 50% from the current level, and it will not be able to pay meaningful dividend for three to four years.

Neither will it be a dividend stock nor a growth stock. Those large investors, including some famous fund managers will live in denial that they have made a mistake by investing in Capita. Consequently, investors who have invested in their funds will suffer.

As suggested quite some time ago Capita will probably announce their 2017 annual results together with the rights issue document by the end of March. We don't have long to wait. Bondholders of £1.6 billion will exercise their influence as to what businesses should be sold off and how their bonds will be repaid. Some will convert part of their bonds into new equity, however, they will lose income for a few years, as there will be no dividend. They would rather stick to their guns and ask for redemption of their bonds from the new money raised.

Whatever talents that are left will be guided by the new Chief People Officer. I don't expect the new CEO will stay for too long; maybe two years at most to see through the disposal programme and claim some credit for his work. However, I don't foresee Capita will grow into a strong force that it once was.

[mj19] 15/3/2018 13:42

Going up everyday

[dexdringle] 14/3/2018 13:33

Kingston78 - is it being so cheerful that keeps you going ?

[mj19] 14/3/2018 11:06

Up today very weird stock

[abbotslynn] 13/3/2018 22:53

Looking grim to be honest 10% stop losses kicking in.

[tim 3] 13/3/2018 21:51

Interesting Woodford was always saying CPI's strength was its management,the ones that got them into this mess!

Makes me question my decision to not short stocks any more ;)

Everything looks horrible.

£1 highly likely imo.

[pal44] 13/3/2018 21:24

appointment of a People officer wonder what he will get up to ..chop chop chop ...

[dexdringle] 13/3/2018 08:34

Hold on. Capita mission statement is "We unlock value with talent and technology". Not "we endeavour to....." or "we aim to.....".

Now, this is either true or it is a trades description issue. Unless someone can direct me to the value that is being unlocked ?

As usual, the problem is (or has been) poor management. There are so few truly talented CEO's these days that it makes you wonder why they all earn so much given that at least 75% of them are hopeless. There are talented people in these businesses but they simply don't get a look in (as they are probably introverted intellectuals who can see exactly whet is going wrong but whose opinion is never sought). The ones that get on and become CEO's are the brash, confident, types with an over inflated idea of their own intelligence and talent.

My advice. Buy companies that are run by quiet, intelligent, people who have a massive personal stake in the success of the business and a lot to lose if it goes wrong......

[paddyfool] 13/3/2018 08:11

and still we wait for the hammer blow of the extreme dilution through the equity offering and the debt conversion. Capita have no cards in this game, as they are desperate and the underwriters and debt holders will be setting the terms, on their view of risk, which will be very different from Capitas.

[ibuyland] 12/3/2018 15:36

Laughing at that appointment of a People officer, especially the comment about so many talented people at Capita, but they still have to bring someone in from outside to manage all that talent.

[mj19] 12/3/2018 15:31

Going up every day slowly

[abbotslynn] 11/3/2018 21:54

Hope not, ahh

[tim 3] 11/3/2018 21:25

You do get the impression there is much more bad news to come out.

[ltcm1] 11/3/2018 20:27

The Sunday Times said a source had told them Capita had underinvested to the tune of £250m over the last few years.

It is hard to see their argument they are a vital cog as opposed to a mere outsourcer really stacks up.

If they can't run an army recruitment website properly it doesn't auger well.

[abbotslynn] 11/3/2018 15:28

Good reasoning argument Paddy

[paddyfool] 11/3/2018 15:26

How do they bid for new work under this level of uncertainty? In the private sector they cannot win anything at the moment as no company will be happy to take the risk. In the public sector they cannot win anything either as the government do not want to be seen to be supporting a company obviously on its uppers, way too much political capital to be lost down that road.

[ibuyland] 11/3/2018 11:10

Some of the £1.6bn bond holders are going to convert to equity it appears, that's only done as they know that they might not get anything if capita goes under, which it still looks like it might do. Who knows what's going to be left after the sales, as the best bits will be sold off and you are going to end up wit a lot of senior management looking after a lot less.

And how do you bid for new work, if you dont know what's going to be left?

[nigelpm] 11/3/2018 10:13

Ouch - more pain to come I suspect.

[bigbigdave] 11/3/2018 07:03

The embattled outsourcing giant Capita is plotting a £700m fire sale of assets alongside a heavily discounted rights issue intended to raise a similar sum.

[abbotslynn] 09/3/2018 20:36

Holding up quite good. Hoping for better share price on Monday

[cryptotrade] 09/3/2018 10:51

MJ9, buying it.. buying suggests you buy then hold.

Maybe people are just trading it, buy, then sell , short term trades, days worth. Nothing wrong in that.