Capital Share Discussion Threads

[rivaldo] 23/3/2021 11:58

Thanks re the new interview homebrewruss. Very bullish indeed, as summed up by the narrative below the video:

"Capital Ltd says 2021 is about contract execution as it makes strong start to the new year
•22 Mar 2021

Capital Ltd's (LON:CAPD) Jamie Boyton talks Proactive's Andrew Scott through its 2020 results. Underlying earnings (EBITDA) rose 24% to US$33.8mln as revenue grew 18% to US$135.0mln. He says they're now experiencing some of the most positive trading conditions in its history. Demand for drilling services has increased strongly from the last quarter of 2020, building further in the first quarter of this year and is particularly strong in West Africa where the group now has 41 rigs."

[shanklin] 23/3/2021 07:33

Not unhelpful

[shanklin] 22/3/2021 17:27

You could almost see the JB cogs whirring... ...do we really have to give another fantastic update for the share price to start moving towards something more realistic.

[gleach23] 22/3/2021 17:02

Cheers homebrewruss...JB certainly seems to be looking forward to issuing the Q1 Trading Update - he says early April but will probably be mid April judging from last couple of years.

[homebrewruss] 22/3/2021 16:49

Proactive interview from today:

[otemple3] 22/3/2021 13:11

I thought he would tbh but looks like we'll have to wait - he will have loved the update I'm sure

[adamb1978] 22/3/2021 11:50

I've had another little nibble since the results. I was tempted to hold on to see whether it drifts down more towards the 60p-level given most of my purchases have been in the 60-65 range however I took the view that the guidance in the results should put a new floor under how far down this can go

[basem1] 22/3/2021 11:42

Wonder if ST will tip this today at 12

[hpcg] 22/3/2021 10:34

CEY finals today suggest they too are looking to explore more in their license areas. Though that may well already be factored into the revenue forecast here.

[rivaldo] 22/3/2021 07:41

Altus have raised £7.7m this morning to "aggressively accelerate our exploration programmes primarily in Egypt and Mali, as well as enable us to consider potential project and royalty acquisition opportunities".

Which should therefore be good news for CAPD too:

[gleach23] 21/3/2021 19:06

Agree about the spread bets hpcg. I did exactly as you suggest on results day and have also now gone overweight in my SIPP. Hopefully a move into the 70s this week.

[hpcg] 21/3/2021 12:46

I've kept buying and going substantially overweight especially with both the covid winners and the rebound trade looking fully priced.

For those that don't follow I don't think there is any spread bet coverage now, and any remaining IG holders are forced sellers for the next couple of weeks. Having said that I had already rotated out my SBs into physical, and I would imagine most would have shifted out on results day.

[tole] 20/3/2021 08:11

https://masterinvestor.co.uk/equities/small-cap-round-up-featuring-kape-sureserve-worsley-and-more/Capital Ltd (LON:CAPD) – still offering upsideWith an increased number of rigs in its fleet, 98 last year against 92 in 2019, and an increase in their utilisation, up from 54% to 59%, it was good to see this expanding mining services group record better results.For the year to end-December it saw a 17.5% increase in revenues to $135m and an uplift in net profits at $24.8m against $10.4m previously. Earnings came out 130.6% better at 17.8c, with an almost doubled dividend at 2.2c (1.4c).The net assets per share were up 68.3% at 106c, while net cash was 13.1% better at $5m at the year end.The year ahead is expected to see a heavier focus upon the group's mining services side.I have been disappointed at the continual dribbling of holders reducing positions in the shares over the last few months, coupled with more stock coming out onto the market for the recent fundraising.However, I remain confident that this group's strategy going forward is well-based and that its shares, now 11% better at 68.75p after the results yesterday, still offer strong upside potential.

[rivaldo] 19/3/2021 08:53

Cheers Mas - good to see Berenberg's 100p target, though this is undercooked compared to Tamesis' 127p valuation.

[chillpill] 19/3/2021 08:52

It’s not the worlds most exciting share but could well double your money over next 12 months, possibly more as Tamesis suggest.

Happy medium term holder.

[rivaldo] 19/3/2021 07:29

CAPD got a rather bullish review on Stockopedia last night in Paul Scott's Small Cap Value Report by Jack Brumby. It concluded as follows (a bit misleading to use the full 17.6c EPS including the investment gains, but I guess he's a newbie to CAPD):

"Conclusion

These are strong results and Capital looks well placed for a continued pick up in Africa-based mining activity. I don’t think we’ve missed the boat here.

Some big institutions have been buying in and, given the results and outlook, the share price looks cheap. Diluted EPS of 17.6c puts the group on about 5.4x FY20 earnings.

Capital guides to revenue of between $185m-$195m for FY21 and demand for drilling services ‘has increased strongly from Q4 2020, building further in Q1 2021’. MSLABS is working at near full capacity across all major laboratories.

MSLABS also sounds interesting – this is a global provider of geochemical lab services serving the exploration and mining industries. There could be growth potential here.

Given the buoyant outlook the shares do look cheap at the moment and I think it’s well worth spending a bit more time getting to know this company.

True, at some point there could be a downturn in mining activity, but there seems to be a disconnect between the positive outlook and today’s share price even accounting for the 10% rise."

[currencytrader1] 18/3/2021 19:55

I feel the force is strong in this one so it is.
Celebrate at the close Friday!

[sphere25] 18/3/2021 16:40

So what do we reckon folks, are we allowed to be a tad bullish here now?

The price usually comes back but it has held the strong gains intraday. Dare it be said that a move into the 70's is a possibility now?

I thought the multiple could expand to test those highs up at 78p but clearly wrong so far.

You don't want to get too bullish with CAPD or you might find yourself needing to hire some of their equipment.

All imo
DYOR

[shanklin] 18/3/2021 14:58

...Especially given there's a lot of tangible book value on the B/S.

[lord gnome] 18/3/2021 14:53

2021 earnings forecast of 10.2 cents = 7.3p which gives a fwd PE of just 9.3. Good value.

[rivaldo] 18/3/2021 13:27

Hastings has updated just now - excellent as ever, except I might have added that the 17.8c EPS for last year does include the exceptional investment gains.

But CAPD remains exceptionally cheap imho given the prudent 10.2c EPS forecast this year and everything else already said here:

[hpcg] 18/3/2021 12:43

Edit - sorry, wrong thread.

[hpcg] 18/3/2021 12:37

Mark - that was an excellent write up. What I had missed was the stream of short term contract they put out on twitter. The name makes it spectacularly hard to find; half the people I follow have Capital in their title. For the benefit of others it is @_CapitalLimited

[dangersimpson2] 18/3/2021 12:33

Anyone joining on the strength of today's results & outlook might like to check out the recent write-up we did here for more background:

The Tamesis note this morning doesn't seem to have had much change to their block model for 2021 in response to today's results. This is starting to look a little conservative to me.