Capital Share Discussion Threads

[chillpill] 15/7/2021 09:39

Bottom drawer stock for me.

[otemple3] 15/7/2021 09:26

Agree, very positive. Some good insightful Q&A too

[hpcg] 15/7/2021 09:24

Absolutely cracking conference call. Looking forward to H1 financials on 19 August.

[davebowler] 15/7/2021 09:12

This most recent trading update highlights the operational excellence of Capital Limited as well as the very strong revenue growth and diversification being achieved by the management. The shares are only up 11% YTD despite this performance. As such they continue to look extremely undervalued; trading on a EV/EBITDA of 4.2x and 3.2x and P/E of 10.3x and 7.0x for 2021E and 2022E respectively. On today’s guidance our first pass estimation of upgrade to EBITDA and Net Profit is 12% and 31% respectively for 2021. We re-iterate that Capital is a perfect and relatively safe way to gain leverage to the gold price, which looks to have again stabilised, as well as a well-executed organic expansion strategy. Tamesis Partners LLP

[hpcg] 15/7/2021 08:49

gleach23 - I'd rather significant holders sell in to strength. We should expect people to monetise their investment while they have a life to spend it in, otherwise what was the point?

The item that caught my eye was West Africa up to 38$ of revenue. This means Sukari is becoming less significant rather than more significant, which is what some people feared when the earth moving contract was announced. Also Tanzania must be less significant too.

[chillpill] 15/7/2021 08:11

The sector has tailwinds. This is best in class.

[11_percent] 15/7/2021 08:05

The market likes it.....

[gleach23] 15/7/2021 07:52

Well they've been consistently good for some time now but I don't recall such a pleasing update. Pity for the founders (first Burton now Rudd) if their personal circumstances mean they are having to sell into this business momentum.

[chillpill] 15/7/2021 07:50

Just read the note with PT of 127p.

The most important thing is the industry dynamics aren’t changing for several years imo.

[otemple3] 15/7/2021 07:46

Tamesis update out - upgraded net profit FC by 31%. Excellent update all round. Crazy this is valued on a forward PER of 7!!!

[qs99] 15/7/2021 07:42

The only reason I can think of that they have not given an "ahead of" statement is that they are reinvesting increased profits somehow or contracts have required more spend, otherwise with that sort of revenue increase why does nothing drop through to the bottom line? Seems odd....

DYOR and still long and strong here!!
Cheers
QS99

[chillpill] 15/7/2021 07:36

They are in a sweet spot for the next 2/3 years.

It’s a no brainer hold for now.

[basem1] 15/7/2021 07:34

Original price targets of 125p must be increased now by 5-7% minimum.

[sundance 13] 15/7/2021 07:27

Yes that for me was the missing piece, revenue etc look great but what about the bottom line??

[lord gnome] 15/7/2021 07:25

Marvellous update. I couldn't find a single negative. The only phrase that was missing was 'expects profits to be substantially ahead of market expectations' although I suspect that this is the subtext. Should be well received by the market.

[rivaldo] 15/7/2021 07:24

Lovely - revenue guidance has increased by $15m to the $200m-$210m range.....

A blistering Q2 and H1. Utilisation and total revenues are massively up and ARPOR is solidly up. As is the fleet size, which bodes well.

And the outlook is great:

"Looking ahead, rig utilisation levels are expected to maintain the high levels seen through H1, with new rigs largely going to previously announced contracts, and demand remaining strong."

It's great to see non-drilling revenues start to approach a fifth of total revenues - even despite the huge increase in drilling revenues. The Sukari expansion is nicely on track and the necessary capex has now all been spent. And CAPD are also now expanding in Canada too.

Can't wait to see the new broker forecasts, but the current share price is surely ridiculously low.

[valhamos] 15/7/2021 07:12

It's been a while coming but marvellous rig utilisation at 79% for Q2. Revenue guidance for the year now $200m

[basem1] 15/7/2021 07:12

I'll let Rivaldo do his usual synopsis But all good here and looking for a climb into the mid 80's today

[shanklin] 14/7/2021 15:56

rivaldo, you can probably look here without a Twitter account...

[rivaldo] 14/7/2021 15:04

Ah, missed that, cheers. I really must look at Twitter more often :o))

[otemple3] 14/7/2021 14:53

They tweeted it will be tomorrow as I said earlier - will look pretty stupid now if it isnt

[rivaldo] 14/7/2021 14:44

Curencytrader1, do you know officially that the trading update will be tomorrow, or are you just assuming it will be as last year's was on the 15th July? I don't recall having seen an official mention.

[currencytrader1] 14/7/2021 08:55

Very good news ahead of update tomorrow. I do like the way this business communicates to the market its good news stories, very refreshing... GLA

[shanklin] 14/7/2021 07:40

Also a tweet this morning from CAPD...

"Strong indicators the high activity levels in our drilling business will continue with S&P Global Market Intelligence drilling data for June showing a strong rebound, 355 projects, +83% YOY, up on moving 12mth avg of 299 & a 3-mth high. Gold matched this trend, also a 3-mth high."

[rivaldo] 14/7/2021 07:28

More good drilling results from CORA this morning, with a nice mention of more work for CAPD:



"The Capital Drilling Deep RC rig has been moved, following completion of the P2 deeper holes at Selin, to target follow-up on the high-grade intercepts reported at Zones A and C, and as part of the completion of the P2 resource consolidation process."