Capita Share Discussion Threads

[minerve 2] 06/3/2020 12:05

I think it is undersold but I was wrong with Kier. Nevertheless I have trebled my holding today.

[deanmatlazin] 06/3/2020 11:59

oversold. still have some good value in it.

[rem108] 06/3/2020 11:22

Capita Group (The) PLC CPI Barclays Capital Overweight 63.73 77.90 175.00 115.00 Reiterates
Capita Group (The) PLC CPI Goldman Sachs Conviction Buy 63.73 77.90 240.00 200.00 Reiterates

[minerve 2] 06/3/2020 11:20

Oh don't get me wrong, my annoyance isn't at the price falling. In fact it is welcome. I will be adding to my position here.

Yes, I know their balance sheet isn't that great but I do allow myself a percentage in my portfolio for turnarounds.

I feel there is a reasonable chance that good free cash flow returns soon and I am assuming the virus is a temporary issue. We are supposed to see 95% of cases within a 9 week period which surely means the ramp up is equally quick and we are not far away from this 9 week period starting.

[tomboyb] 06/3/2020 11:19

The only way to recover is for markets to recover quickly -

Even then i think Capita will have issues -

Just my opinion but i wish u guys the best -

[tomboyb] 06/3/2020 11:16

Minerve -

There does not seem to be any equity value here -

4 billion of liabilities and net deficit balance sheet -

So i can't see what is so surprising -

[sandidan] 06/3/2020 11:12

No worries, apology accepted.Thanks for being a lady/gent.

[minerve 2] 06/3/2020 11:06

sandidan

My apologies, I wasn't aiming the comment at you personally. It is my main experience on ADVFN nowadays and perhaps I shouldn't label everyone the same but it is very easy to do so.

[sandidan] 06/3/2020 11:04

Unless you're worried that the share price goes up now?

[sandidan] 06/3/2020 11:03

Wow, I merely posted something that has just been updated on the news bulletin. Didn't expect to be attacked like that! If you look at my history, I don't actually post that much to been seen as what you're insinuating! You're actually crazy! Surely for a share to be added to a conviction buy list is a good thing! And I'm free to post this as it's true right?

[sandidan] 06/3/2020 10:46

Today, Goldman Sachs has cut CPI target price from 240 to 200, added to "conviction buy list"

[tomboyb] 06/3/2020 09:42

Is there any equity value here? -

The sooner they restructure the better i presume -

[sbb1x] 06/3/2020 09:21

1 penny away from the 60p I mentioned yesterday, just looked at mkt cap. This beast is way overvalued. 30p target.

[tomboyb] 06/3/2020 09:13

Could fall to 50p or below -

Seems to be the trend and big indebted companies -

Restructuring could see a huge chunk of equity wiped out -

Can see that in the balance sheet -

[sweepie2] 06/3/2020 09:10

Will be joining you pal

[warranty] 06/3/2020 09:04

Agree with Lowtrawler, I also worked for a market leading company who did the same, brought in a CEO with no experience in our industry, who wanted to change the world and wouldn’t listen to advice from long termers who had the company at heart. Eventually as they “weren’t on the bus” they were replaced by equally inexperienced managers. Result, lost customers, company millions in the red. Sounds like the same things happening here. The old saying “you don’t know what you don’t know” rings true in so many organisations when people outside of an industry come in and don’t listen and learn from those already there!!

[pal44] 06/3/2020 08:53

come on need 35p to buy some ..

[sbb1x] 06/3/2020 08:46

Another 10% to go

[owlbaby] 05/3/2020 23:09

To pick the mid year message "recovery on track" shows they don't know what to expect and will guess. "Too early to tell" would have been more prudent & bought time to try to find out.

[owlbaby] 05/3/2020 23:02

Agree, the CEO talks about "fix" meaning replacing experience of once reliable delivery of financial performance in a quest for technology based concept conceived by external consultants which he can not guess the feasibility or cost of.

[lowtrawler] 05/3/2020 21:52

This will be my last post on this thread as I don't think I have anything else of value to offer. Had I got this information from just 1 or 2 of my Capita contacts, I would have considered it sour grapes. However, I have now had the same message from 5 different contacts, none of whom are in touch with each other.

I used to work as a senior manager in a business which went through a similar restructuring and made similar mistakes. They were the number 1 business in their market and highly profitable. Within 10 years, they went bust. The number 2 business is now dominant.

[lowtrawler] 05/3/2020 21:35

Some of the middle management I refer to are actually the people on the ground interfacing with the customer for requirements and agreeing deliverables. What has been explained to me is that the incoming resource don't understand the packages they are delivering and don't understand the client businesses to determine suitable solutions. This is frustrating the clients and causing them to look elsewhere.

[captain_kurt] 05/3/2020 21:28

It seems they have cut experienced staff on the ground. Too many middle management layers delivering zero revenue.

[escapetohome] 05/3/2020 21:26

This is just the norm in local authority service / construction contracts.

The old grey hairs disappear in a “” RESTRUCTURE”” ahem ahem.

In come very young europeans, some of whom are actually quite good.