Capita Share Discussion Threads

[oscar000] 22/1/2009 14:05

and thta is the result of wining 500m order, any idea why?

[wcjan26] 22/1/2009 13:59

if it takes out the prior low at 675, looks like more downside ahead. 650p easily

[trickyboyfish] 15/1/2009 19:53

FWIW - I think this is only a blip - severe downward trend to continue tomorrow.

[oscar000] 15/1/2009 19:45

I think you played it well at 755 short, personally, and I was going to short at 765 but missed the boat last thursday.

[scburbs] 15/1/2009 14:01

A fairly short bull case then!

[dinky rinky] 14/1/2009 20:14

Spot on oscar, that says it all.

[oscar000] 14/1/2009 18:03

I am neither long nor short, so it doesnt bother me. The long case is because outsourcing contracts in public sector are to save money not spend like a pfi, thats the difference, and with money tight councils will need to contract with outsourcing companies to become more efficient, which isnt difficult in the inefficient public sector.

[scburbs] 14/1/2009 16:38

Agreed, not directly. However, a large chunk of Capita's work is long term contracts with government entities. There has been a presumption that companies with government contracts will be unaffected. This article illustrates this may not always be the case.

In order for Capita to justify its current share price it needs to keep growing strongly. Any weakness in the share price could cause a derating as its premium rating erodes, i.e. the share price could fall substantially even by Capita performing reasonable well as it needs to perform better than that.

Capita's private sector clients are also likely to be pressure on margins as will competition and reduced margins due to offshore costs increasing.

As I have declared previously I am short from 755p. Happy to hear the bull case if either of you have time to post one.

[dinky rinky] 14/1/2009 14:36

scburbs - 14 Jan'09 - 10:36 - 1261 of 1262
PFI suffers massive hit in downturn
14/01/2009 09:00

So what has this to do with Capita ?

[scburbs] 14/1/2009 10:36

"PFI suffers massive hit in downturn
14/01/2009 09:00

Public Finance Magazine has reported a huge downturn in PFI deals signed last year with few contracts signed than at any point since PFI took off a decade ago.

Only 34 deals were signed last year compared with at least 60 signed every year over the past decade. Just seven hospital deals were signed last year, down from 20 in 2007.

Fears have now been voiced that extra public sector cash might be needed to finalise the £4.5bn M25 widening deal.

However, Partnerships for Schools said about six banks were returning to the big schools market, where projects were smaller, although they were limiting the amount each would lend on each scheme.

Tim Byles, Partnerships for Schools chief executive said the Building Schools for the Future projects was "not out of the woods yet".

The Treasury declined to discuss the idea of further public sector support for private finance projects.

14/01/09 Financial Times 2

Financial Times"

From EGi

[trt] 14/1/2009 08:10

I think we could well see £6.20 again

[bigbigdave] 12/1/2009 13:14

Just a guess..... folk moving out of 'Safe' Capita into bouncing smallcaps?
(like me for example 8-))

[trt] 09/1/2009 15:00

Could drop below £7.00 again

[wcjan26] 22/12/2008 17:47

short here today

no justification for such a premium rating purely on earnings visibility and so called defensive qualities

also short srp

[trt] 22/12/2008 11:34

Could easily drop below £7.00 in such thin volume as the MM's move the price down.

[ben gunn] 22/12/2008 09:13

scburbs
Very timely.

[scburbs] 19/12/2008 15:09

Seems a good time to short these (for FA investors). I am in for £10pp at just under 755p.

[trickyboyfish] 19/12/2008 15:01

BBD - I sold out at 6.38 - a 1 bagger for me but wasnt taking any risks.

[bigbigdave] 19/12/2008 14:54

Well thats my final lot gone, sell the spikes buy the dips.
Might go a bit higher, but always hard to know exactly when to sell.
4 bagger on the original investment in just over 5 years, very nice but too expensive when you look at how cheap some stocks are - couldn't envisage Capita's share price multibagging in 12 months on a turnaround in the markets

(Anyway, the word "challenging" was in Mr Pindars Xmas message)

[entrepreneur2424] 19/12/2008 11:51

my dad works for capita (symonds), how come theyre not doing a big xmas party and giving bonuses even though they're going strong and growing year on year!

[trickyboyfish] 19/12/2008 11:45

Get back to work - you're costing shareholders money by posting here in work time ;)

I was considering the PP msg myself but think you are right - perhaps it could be paraphrased?

[bigbigdave] 19/12/2008 11:32

Nice Christmas message from Mr Pindar.
Would paste it here but would probably lead to dismissal!

[trt] 12/12/2008 08:05

I see SERCO has started up operations in India - in direct competition with Capita. A concern I would say !!