Capital Share Discussion Threads

[hpcg] 24/7/2020 13:33

Too much handwringing about the share price. People (like myself) will be buying in and the share price will go up. The business prospects are very good, the investments are gravy, and they have ample working capital to mobilise rigs (having not wasted any on buybacks). Plenty of investors will be gold first, then miners, then mining services.

[rivaldo] 24/7/2020 12:59

Hello - 2.132m shares just reported in three trades at different prices around 67p. Have Berenberg finally got off their bottoms and cleared the overhang?

[qs99] 24/7/2020 12:32

Thanks Riv, really useful. let's hope they are monetising some of this as they go along...

[gleach23] 24/7/2020 12:16

Thanks rivaldo.

Bid creeping up but volume appeared on Offer again - over 225k as far as I can tell

[rivaldo] 24/7/2020 09:04

Awale Resources is up 69% overnight to CAD$0.22 (CAPD invested at CAD$0.09):o))

That makes CAPD's holding worth CAD$1.83m, or ££1.08m.....

CAPD's investments must now be worth close to £15m. And the cash pile may have risen to say $7m or so.

[gleach23] 23/7/2020 17:26

Just over 7.5k shares being offered online late afternoon too

[rivaldo] 23/7/2020 13:56

Good to see buys now going through at almost the full 72p offer price, well up on this morning's 70.9p buy trades.

[insideryou] 23/7/2020 11:10

Yes. Odd and contrarian movement in correlation to its underlying asset which climbs ever higher.?

[shanklin] 23/7/2020 08:09

Gold at record levels so, obviously, the CAPD share price slips back. The seller never learns.

[qs99] 22/7/2020 13:33

Really quiet on here....as you say, when people wake up, or on next update, this may get squeezed sharply (hopefully!)

cheers

[rivaldo] 22/7/2020 11:15

There's been an overhang for a long time. That "appears" to have been cleared, though that's not certain yet. So some have been wary and held off.

However, the share price has risen well and is consolidating nicely at around new recent highs. With the gold price surging it shouldn't take much for some to see the value here.

I suspect CAPD is one of those shares which see sharp and sudden re-ratings once they do go.

[insideryou] 22/7/2020 10:15

Why do you feel this isn't being bought with the tenacity it deserves? What am I missing here?

[rivaldo] 22/7/2020 08:43

Gold is now above $1,850....and Tamesis Partners have released their new research on CAPD.

They've retained their 100p price target (with $135.3m revenues for the year). Their forecasts are rounded, so I calculate they go for 7.22c EPS this year and 8.25c EPS next year, i.e at $1.25 that's 5.8p rising to 6.6p EPS.

They summarise as "extremely undervalued" - the EV/EBITDA in particular looks ridiculously low, highlighting the excellent cash flows:

"So overall a lot of things going right for the company that should continue to deliver reward for shareholders,not least the gold price environment. Management continue to lay down a strong track record in revenue and EBITDA growth – see table below. As such the shares continue to look extremely undervalued; trading on a 2020E EV/EBITDA and P/E of 2.8x and 10.8x respectively, falling to 2.6x and 9.4x respectively for 2021."

[rivaldo] 21/7/2020 13:41

:o)) Cheers - always good (and rare) to get appreciative comments.

I suspect I'm a bit organised/anal compared to many, so I have a Companies section in my bookmarks, and under CAPD all the investee company quote web sites are referenced such that it only takes seconds to check all of them every so often for interesting moves. The same goes for all my own portfolio/investee web sites.

[deanowls] 21/7/2020 09:43

I don’t know where you find the time Riv, always appreciated though.

[rivaldo] 21/7/2020 09:20

Gold now above $1,820.

Arrow Minerals are up 25% overnight to AUD0.01 (so back up to cost), with Mali Lithium up 8% to 0.14 compared to 0.095 cost.

[rivaldo] 20/7/2020 08:55

Good to see that following Friday's surge, online remains nicely even-stevens. You can sell a maximum 35k at 71.15p and also buy a maximum 35k at 73.7p.

[dangersimpson2] 18/7/2020 09:55

I think that's the most positive I'm heard the company on outlook in the last 5 years!

[rivaldo] 17/7/2020 15:50

Er...here we go? :o))

[shanklin] 17/7/2020 15:03

Interesting interview. Sounds tolerable :-)

[rivaldo] 17/7/2020 11:00

New interview with the CEO - with some rather interesting quotes:

- "there's a wave of demand out there"
- "an absolute wall of demand"
- "we're going to have a very strong Q4 and 2021"
- all mine sites have operated unaffected by COVID-19
- 95% of revenues are gold-derived. The rest is copper via Barrick in Saudi
- the new mining services division, which won its first contract win with Allied Gold late last year, is tendering for another half a dozen opportunities



EDIT - beat me to it Jeff H :o))

[jeff h] 17/7/2020 10:51

proactive investors .co.uk interview though not allowed to post the link but here is the 2nd part of the link:-

/companies/news/924465/capital-limited-s-jamie-boyton-sees-a--wave-of-demand--for-its-services-later-this-year-924465.html

[shanklin] 17/7/2020 10:46

QS99

Good point. It would be nice to think the seller, if still around, would realise they have been selling at too low a price.

[gleach23] 17/7/2020 10:16

Thanks for the update on the buy/sell limits rivaldo.

It's still the same now and with so very few shares available to buy I would expect a jump shortly (potentially into the 70s) but let's see. Then we may see volume appear on the Offer again, as miti suggests, but if it happens then hopefully we'll hold the higher level. Would be nice to establish 70p as a new base.