Capital Share Discussion Threads

[johnrxx99] 03/5/2023 07:40

So why the markdown yesterday, just MM's trying to get stock?

[rivaldo] 03/5/2023 07:19

Yep - at that valuation the crystallised Allied Gold investment by itself would equate to more than 10% of CAPD's m/cap:

[catsick] 03/5/2023 07:07

Nice update on allied holdings which at 1.55% of a pre money 1.2bn valuation should show a nice 11m usd profit

[rivaldo] 02/5/2023 13:14

Hopefully the PR for Allied Gold's IPO will bring more attention to CAPD. Given the huge undervaluation here already (imho!) the injection of an instant additional £20m or so of liquid funds to the valuation is not be sneezed at.

Looks like a positive review for CAPD here from HotStockRockets (subscriber only):



"Capital Limited – Q1 2023 trading update, another record year ahead?
By HotStockRockets | Thursday 27 April 2023

Mining services company Capital Limited (CAPD) has issued a first quarter of the year trading update, emphasising “a solid platform to achieve another record year milestone for 2023” and helping the shares to currently 99.8p."

[hpcg] 29/4/2023 14:18

Thank goodness Allied are listing in the US. Anyhow, the reverse takeover process is a good one for us as it looks like it will provide hypothecation into tradeable shares instantly.

[deanowls] 29/4/2023 06:06

Adam, whatever the current leadership believe is best I will give them the benefit of the doubt. Their capital allocation over the last 8 years has been fantastic.

[adamb1978] 28/4/2023 22:07

hi Concentrate

Yes, thats an alternative. Whichever is most tax efficient, but the point remains that they should be passing this back to shareholder rather than retaining it. The company doesnt need the capital (pun intended)

Adam

[concentrate] 28/4/2023 20:48

If it’s close to being 10% of market cap, we must be close to ‘dividend in specie’ territory?

Doing this would both validate the strategy, and allow investors to make their own call.

Only major concern is the different stock exchange.

[adamb1978] 28/4/2023 14:50

Very nice! They should definitely place the stock and use the funds to pay a special divi. Company leverage is very low and very cash generative. There can't be any reason to retain the funds or keep the stake.

Adam

[rivaldo] 28/4/2023 14:22

Terrific news re the upcoming Allied Gold Corp IPO in the USA, thx kaizenkid. Here's a direct link:



CAPD's investment was valued at $7.7m at the last year end and was last thought to be around 2% of Allied. With a $1.2 billion pre-money valuation that would imply a value of $24m or say £19m.

Which alone would equate to more than 10% of CAPD's entire m/cap and would add very nicely to CAPD's liquidity. CAPD could place their stock out as part of the IPO, sell stock into the market afterwards or retain it, but whichever, it will add another substantial building block onto the undervaluation here..

[adamb1978] 28/4/2023 11:36

AGM is on 18th May. I'd encourage all those on here who are annoyed with teh share price to join via the investormeetcompany website and lob in some questions too.

I've submitted one in relation to a share buy back, particularly given that the share price is now comfortably below NAV. If others agree that they should look to a buyback, please do submit questions in that regard given that the more comments/questions which they receive about it, the more likely the board are to act on it.

Adam

[gleach23] 28/4/2023 10:59

Thanks kaizenkid - expected to be on or before 31st Aug 2023

[kaizenkid] 28/4/2023 10:41

Looks like Allied finally IPOing: hxxps://www.newsfilecorp.com/release/163921/Africas-Fastest-Growing-Gold-Miner-Attracts-Highly-Experienced-Former-Yamana-Principals-to-Drive-Public-Listing-and-Continue-to-Build-the-Next-Generation-Senior-Gold-Producer

[rivaldo] 26/4/2023 09:24

CAPD's holding in Golden Rim is edging up slowly, with more good drilling results - CAPD are the contractor and there's lots more drilling going on until the end of May:



CAPD also drill for Desert Gold in Mail, where DG have announced further encouraging news:



"Next steps will be to follow up with drilling on these new high priority auger targets as soon as possible."

[rivaldo] 21/4/2023 11:38

Berenberg and Cannacord have both reiterated their Buy recommendations, with 166p and 145p targets respectively:

[rivaldo] 20/4/2023 08:57

Tamesis Partners retain their 160p target.

They forecast 19.5c EPS this year, i.e 15.7p EPS. That's a P/E of only 6.2.

They conclude:

"Conclusion:

This is a steady start to 2023 on which Capital will aim to build on throughout the year. The Company is confident on its revenue guidance and expects a strong back half of the year as MSALABS contributions increase. The shares are down 8% since the start of 2023 representing, in our view, a great entry point for a Company that we believe continues to look extremely undervalued trading on a 2023E EV/EBITDA and P/E of 2.7x and 6.2x respectively – see Block Model. We retain our PT of 160p."

[adamb1978] 20/4/2023 08:17

Interesting that there were zero comments in the update on balance sheet or cashflow.

Suggests no immediate plans for more heavy capex other than the amounts flagged in Q4 and (pleasingly from my perspective) a de-focussing of attention away from their investment portfolio which I dont believe gets them any upside in teh share price (other than from winning contracts at smaller miners...who they're doing less business with now).

[adamb1978] 20/4/2023 08:10

Looks fine from what I can see. If this ARPOR continues then it'll be c.7% above 2022 levels from what I can see and similarly rig count will add another few % to the top line, plus further growth from MSLABS.

Therefore I'd expect their $320m-$340m revenue guidance to be somewhat conservative and them to be comfortably in the top half of that range

Adam

[tonytyke2] 20/4/2023 07:33

Agree rivaldo, looks a strong update, everything on track, well done CAPD!

[rivaldo] 20/4/2023 07:22

The Q1 update looks good to me, with revenues up 16% year on year and on track to meet guidance. The ARPOR is particularly impressive and fleet utilisation is good, with "very strong demand for our services".

Labs and mining services continue to increase smoothly. And there's "a number of opportunities progressing" in tendering, so hopefully there's large contract news coming.

Above all, "The Group has got off to a strong start in 2023 across all our business units".

CAPD remain extremely cheap at these levels imho.

[concentrate] 18/4/2023 12:30

Would love to be wrong, but don't think anyone worth their salt has ever bought anything from OTC markets.

It's pretty much the plot of the Wolf of Wall Street.

[rivaldo] 18/4/2023 12:15

An intriguing move. You'd have thought CAPD's advisers would establish there was buying interest in CAPD's shares before doing this? Stifel in particular are a huge American investment bank so should have some heft in making this worthwhile.

[concentrate] 18/4/2023 11:52

RNS - Commencement of Trading on the OTCQX Market

Really don't see the point. Every time I see this it seems a total waste of time and money. I'm convinced that the main benefit it offers is to make it easier to short the stock.

[gleach23] 15/4/2023 21:24

Strength ahead of Q1 update this coming week perhaps?

[podgyted] 15/4/2023 17:12

Yeah.

I was surprised by that - not complaining though.