Share Name Share Symbol Market Type Share ISIN Share Description
Capital Limited LSE:CAPD London Ordinary Share BMG022411000 COMM SHS USD0.0001 (DI)
  Price Change % Change Share Price Shares Traded Last Trade
  2.00 2.53% 81.00 44,154 08:02:47
Bid Price Offer Price High Price Low Price Open Price
81.00 82.20 81.00 81.00 81.00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Support Services 167.71 60.64 27.35 2.7 154
Last Trade Time Trade Type Trade Size Trade Price Currency
08:08:41 O 4,257 82.20 GBX

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Date Time Title Posts
30/6/202207:34CAPITAL DRILLING : global minerals industry services provider2,266
21/5/202009:16Capital Drilling -For Mineral & Mining Exploration1,593
14/11/201308:29*** Capital Drilling ***40

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Capital Daily Update: Capital Limited is listed in the Support Services sector of the London Stock Exchange with ticker CAPD. The last closing price for Capital was 79p.
Capital Limited has a 4 week average price of 75.60p and a 12 week average price of 75.60p.
The 1 year high share price is 108p while the 1 year low share price is currently 73p.
There are currently 190,054,838 shares in issue and the average daily traded volume is 505,261 shares. The market capitalisation of Capital Limited is £150,143,322.02.
fozzie: If I didn’t laugh I would cry. Share price has been underwhelming here for years. Numerous fund managers say it is because of the investment portfolio as it muddies the waters. Share price doesn’t really go up (as much as it should) when the portfolio performs strongly but as soon as it doesn’t the share price is in free fall. The last eighteen months of trading have just been erased and back to just 76p, I give up.
rivaldo: Firefinch's demerged Leo Lithium is now quoted in Oz (symbol LLL). Its announcements show CAPD own 10.353m shares. LLL is trading at A$0.52, so CAPD's holding is worth A$5.4m, or £3m. I assume CAPD still own 18.95m shares in Firefinch, which is now trading at A$0.2, so that's worth £2.1m and the combined holding is worth £5.1m. That's quite a drop from prior to the demerger, but since CAPD's entire investment portfolio is essentially valued at Nil in CAPD's current m/cap - especially after the recent fall - then it shouldn't really make any difference!
troc1958: MRN my post 2183 to get my thoughts.I can't see any main reason why share price is dropping ... maybe- gold explorers make up quite a high % of CAPD current and future work .... higher interest rates and lower gold price means higher cost of capital and more difficulty for explorers to raise funds to "drill" which could impact on CAPD future work / earnings (although CAPD state the tendering pipeline is very active)- ongoing Africa contagion (should already be factored into the "low" price)- general market contagion and potential recessionTroc
troc1958: I've been trading Capital ltd (Capital Drilling) for more than 12 years through all its ups and down and thankfully have done very well. In May 2011 it hit a high of 109p during the last gold cycle, with a subsequent low of 16p in 2013 after the crash. In this cycle so far it has yet to reach its previous high. 108p was its recent highThere are a number of things I would emphasise about the growth since it's previous high in 2011:- it's a much more diversified company than it was, with a range of additional revenue streams and assets to its conventional drilling (e.g. labs, mining services, range of shares in other explorers etc).- much higher drilling rig count- much more concentrated drilling area (I.e used to be spread globally, now predomindantly west and north africa) so easier to control- has an exceptionally strong balance sheetEven though it has more shares in issue since 2011 and thus a higher market cap the current share price is discounting what I believe to be an unnecessarily high risk premium associated with mining, exploration, and particularly Africa.This company to me is a "hidden gem" with huge upside potential given the continuation of the current gold / mining super cycle.Obviously it's not without risks- cost inflation- competition from the many drillers out there- africa contagion etcBut when you look at the low PE and other "ratios" and multiples its trading on; its current low share price in comparison to historical highs defies logic!Either the Market has got this valuation wrong or there is something underlying I am missing.I continue to be a strong holder and will top up on any weakness. Comments please ....
rivaldo: OT: apologies for the delayed reply, been away for the holiday weekend. spann_703 has posted on ADVFN precisely ten times in almost the last seven months. Given these less than prodigious contributions, one might expect his posts to be sparkling, finely crafted jewels of relevant info and wisdom. Sadly not, rather the most backhanded and two-faced of comments on another poster (me!). Presumably he'll go back into hibernation now he's actually put his head above the parapet for a change. CLX is an interesting example since he quotes it. I started the CLX thread only 18 months ago when I bought in immediately after its IPO at 48p and almost no-one had heard of it. It's now 173p. I've continued to post about CLX through the peaks and the troughs, commenting on why the shares have fallen as well as risen. The one comment he picks out however is from a day when the share price had suddenly risen around 6%-7% (from memory) and no-one had posted on the thread for almost a week - it's a lovely, quiet thread - so I thought it might be relevant for someone to actually comment on the sharp rise! Perhaps if spann_703 didn't take things out of context, and looked at comments on shares which haven't multi-bagged, he might come to a more nuanced view, since we all have shares which have underperformed. At least, I do. The same applies to CAPD, which is up 67% since I started this thread. If spann_73 would actually like to contribute something useful, then perhaps he might comment on share price movements in CAPD's investment portfolio himself - along with the reasons for those movements, which I generally do. It's very lazy/easy to sit on the sidelines and snipe out of context. It's harder - but more rewarding - to actually contribute positively, even though many responders are such miserable gits!
davebowler: Tamesis- Lacklustre price reaction offers opportunity We have been very surprised at the lack of share price response to the full year figures released recently by Capital Limited. We understand that there might have been high expectations with the revenue figure of $226.8m (the highest on record) already released with accompanying operational data. But the company also guided to $270-280m revenue for 2022; a YoY increase of 21% and 10.5% above our preadjusted forecast. We don’t see this as peak either with all elements of the business growing strongly. Given the company has consistently beaten our estimates and is generating more growth into the foreseeable future we increase our share price target to 160pps. Key points: New Forecasts Point to Another Record Year for the Top Line We have adjusted our forecasts following the latest guidance and our figures now show a 21% and 8% growth in YoY revenue over the next two years (the company will have more than doubled revenue from 2020 – 2022). The figures below the sales line are no less impressive with EBITDA growing 22% over the next two years and FCF changing from -$22.7m in 2021 to $41.7m in 2023 – a FCF yield of 17%. With More to Come. We would reiterate that the company upsized its guidance three times during the course of last year. The growth comes partly from the underlying business of drilling and mining services . The drill rig fleet size is forecast to increase by 11 rigs or 10% by end of 2022 so the run rate should be strong going into 2023. The mining services business has only just got going fully on its first contract at Sukari so we would expect this also to grow organically. The revenue from the laboratories business is being guided to double to $30m this year and we are now forecasting $43m in 2023 – there is no reason why this “disruptive technology” cannot continue. Background industry data remains strong with exploration spend continuing to grow, commodity prices high and mining activity increasing. Accompanied by Increasing Cashflow and Dividend We are over the capex hump associated with the company’s investment in a mining services fleet and business. Capex is now receding inversely to CFO growth and as a result net debt should be $21.6m end of 2022 and we are forecasting net cash of $9.1m in 2023 and $45.8m in 2024. The Board’s announced a 64% increase in dividends for the year to 3.6c which we estimate will rise to 4.3cps and 4.8cps in 2022 and 2023. With net cash now appearing on the horizon we would not be surprised to see more special returns of capital (the company announced a $2.5m buyback in January 2022). So Why so Undervalued? Capital Ltd now has three broad income streams: drilling, mining services and the assay business. There is also the company’s investment portfolio, Capital Investments, which is essentially a “drill for equity” business and has proven remarkably successful. The portfolio carried a value of US$60 million as of 31 December 2021 vs $12.5m at the end of 2019 and currently equivalent to 25% of the market value of the business. The shares are trading on a PE ratio of 6.5x and 5.7x for 2022 and 2023 respectively, EV/EBITDA of 2.7x and 2.4x and a dividend yield of 3.3% and 3.7%. The FCF yield is expected to rocket in the next two years – current estimate 10% for this year, rising to 17% for 2024. These multiples are simply not reflecting the high growth, relatively low cyclical and risk and profitability of the three proven income streams nor the additional value being created by the investment business. We increase our PT to 160pps which, at this price, means the company would still only trade on a 4.5x EV/EBITDA multiple vs an average of 5.2x for its peers.
concentrate: I'm a relatively recent investor, but looking at the price history, the price has doubled since 2019 (whilst paying a dividend) - that's 30% per annum! Excluding 2020, the price has steadily increased since then. With continuing impressive results, I don't see why that performance won't continue. I see consistent positive share price growth as a good thing vs. an extremely volatile share price. I think the need to see 're-rates' in a share price is overblown.
dangersimpson2: Re: brokers targets - We all know brokers targets are a bit of a game. The broker wants a target higher than the share price to keep the company happy. But equally, they don't want a target that is 3x the current price, or they don't get taken seriously. Then if the share price gets to their target price level, they will just find some way to increase it - use a different target multiple or do a sum of parts valuation etc. etc. There are a couple of broker targets I do take notice of, though. The first is if they issue a sell note - there is little commercial incentive to do this so if they do it is likely to be honestly held opinion. The second is if the broker upgrades their target price even though the share price hasn't moved recently. Again there is little commercial incentive to do this so it likely represents an honestly held opinion that the company is materially undervalued. Re: tracking increasing/static stakes in companies. The holdings are all announced to their respective markets so if you do the leg work, you can track the moves. In general, they trade around core positions, adding in the market on weakness or in placings and then topslicing into strength. The exception so far has been their largest holding Predictive Discovery. This may be a perception that this remains significantly undervalued, or could be an indication that they are hoping to win some additional business from PDI that is worth many times the current $22m value of the equity stake, or both.
smithie6: YasX I disagree but each to their own view. 1) the market is often stupid & values shares 'wrongly'. For example at many times shares in Sage, Next etc were underpriced as those companies grew. And ACSO. While Serco, Restaurant group, etc were over priced. (Restaurant group (& Agrekko) had a debt mountain & flat performance yet was rated like a growing software company. In time the sh. price dived. The data was all there but the mkt is often stupid and/or slow. It creates opportunity for awake buyers/shorters). 2) "Buying a tiny fraction daily is hardly having much of an impact on anything." The buy back limit is fairly small % of the co. (1-1.5% ?) It is to hold in treasury the shares for the bonuses for directors, assuming the vesting rules are met. Like all buy backs I have ever seen it is a gentle process, it is not intended to drive up the share price like a rocket. 3) Trimming share investments held & buying back more shares such as for cancellation or to pay a bigger dividend. It is one option the directors have. No rush. 4). If the dirs see the sh. price as way too cheap they can also do other things such as increasing presence in financial media. Director interview. Interview in a financial publication etc. But note that generally the bod is expected to present information to the mkt & leave the mkt to decide a fair share price. 5) Dirs. could trim share investments & pay a bigger divi or special divi or a compulsory pro rata share buy back & cancellation. Bit by bit. 'if' they decided to do anything they would need some time (but they are experienced & dynamic). 6) Dirs. might phps be keen to get the sh. price up to reduce the risk of a takeover offer, attracted by the cheap price. 7) Turnover up 60-70% in 1 year ! This is shovelling out profit imo. If not I'm a Dutchman. (& I'm not !) ---- I like the financial numbers so I bought more at the end of today. My biggest holding. It's cheap as chips imo ! I'm confident it will go up, but for reality we have to wait to see. Produces so much cash each month it is gobsmacking.
thirty fifty twenty: thanks to everyone for the high quality and reasoned contributions - very helpful to me to critique my own valuation, reasons for holding, and to challenge if it is consistent with my investment strategy. to me, in simple terms, some of the best share price rises can come when there is a tightly long term shareholder base and then there is large demand for the few remaining shares. i.e. new investors are prepared to pay a high price to get in on a stock. to me muckshifter demonstrates that they are many reasons why institutional holders would not make this a 'forever' hold as there are, and always will be large risks. i largely agree with this despite CAPD having a very good longer term record of growth. however i do think that CAPD is in position to deliver a multi year period (perhaps cyclical) of good profit growth. i think then that this then will be an attractive enough story to bring in a material number of new investors and since current 'fans' will not be selling at this stage those new investors will ultimately push the price up. how much is CAPD 'worth' - who knows really... but the advantage of it being on such a low rating is that small changes in that rating combined with that profit growth could lead to a much higher share price. which is kinda what a lot of the other posters are saying too. the tipping point for my own purchase decision was the chart... this has been in a generally positive trend (so more buyers than sellers), and there is now a very clear long term triangle top chart break. this alone has the potential to bring in a large number of technical traders, and of course the positive gold price chart, and recent break, also brings in a new group of investors. the growing dividend yield, which is relatively unusual for the sector, could also bring in new investors looking for some hedge or negative correlations in a volatile market, and uncertain political and economic. so we all have our own reasons and strategies, but for me CAPD clearly was a very good risk/reward, that fits my long term strategy. All IMHO, DYOR + BoL CAPD is a CORE holding in my portfolio
Capital share price data is direct from the London Stock Exchange
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