Ryan Mee, CEO of Fulcrum Metals, reviews FY23 and progress on the Gold Tailings Hub in Canada. Watch the video here.
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29th April 2024
Struggling IT firm Atos said on Monday that it had received a letter of intent from the French government including an offer to potentially take over some of its business.
The deal would see the government acquiring Atos' advanced computing, mission-critical systems and cybersecurity products.
Financially struggling Atos on Monday also said it would require substantially more cash than previously anticipated to fund its business through 2024 and 2025.
https://www.cnbc.com/2024/04/29/france-moves-to-rescue-atos-as-it-company-struggles-to-stay-afloat.html
Shares in Atos jumped as much as 19% on the news of the French government's offer early on Monday, and were last up by 22.01% at 11:57 a.m. London time.
RR - Should the SP head sub 10p then my bet would pivot on the spot towards it heading rather quickly into administration. I don't think there will be enough economic activity to offer CPI much by way of support. Tough times are coming.
Think folk getting way ahead of themselves on the speculation front; the new guy hasn’t come in to see it taken away in months. The takeover of Capita would be far from simple and I don’t see it on the cards at this point
I'm not sure how Capita is 'ripe for a takeover bid'. All of the most lucrative bits of this business (i.e. those with growth potential) have been sold off. Let's not forget that the original turnaround plan was for Capita to offload the parts of the business they are now left holding. These leftovers might be saleable post-administration, but it's hard to see anyone wanting to pay good money for them at the moment.
Capita's only hope now is to slowly haul its behind into profitability, while not making any major blunders (which, as everyone knows, is a big ask with this company). That may be achievable, but it might also require further fundraising, which will drag the sp even lower.
SK -for now. AI is the future as is blockchain and the re-writing of the Internet on the blockchain with the use of smart contracts
Zuckerberg has gone large betting on AI for Meta... It hasn't helped their SP...
Nothing has changed for the worse (except the SP!) since AH came in. He’s made some positive statements, invested in the company & announced £100m savings + potential to improve margins further. Not bad in 4 months.
I hope that the June statement will give an impetus & a clear sense of direction (sadly lacking under JL). My worry is that return to FCF could be put off to 2026 but I think that’s unlikely.
We have £60m saving announced by JL, £100m by AH, from next year £20m saving from pension, £25 m not going to data leak.
I reckon there will be a£50m spend on AI etc but even so the above should show profit in 2025
I empathise with your situation Trisor and what I'm about to say probably doesn't help you here but.... being honest the factor which weighed on my decision to avoid investing in CPI in the end was I couldn't see good probability for either short or mid-term gains.
I only saw potential for dipping in for a very long term hold and right now I saw greater potential for mid-term gains in another equity. I'm keeping a close eye on CPI though because I'm open minded of the potential for that to change and I could take a position if it does.... Signals I'm looking out for in priority order: 1. General Election UK - if this happens very soon I will very likely take up a position but... it has to be soon, longer it takes the higher the odds I won't be buying in. 2. Better than anticipated results at the next CPI results, I'd only make an investment before seeing the results if a GE comes beforehand. 3. Significant uptick in UK GDP with simultaneous reduction in unemployment figs (unlikely to happen). 4. USA interest rate cut before BoE (unlikely to happen).
Well after many said a few years we would be closer to £1.50 it's now looking very sad. I'm now 65% down. Cannot see any signs that Capita have a plan?
Thank you for your input SK. Im getting to the point where Im praying for that kind of bid as nothing is moving the price and the powers that be at Capita are not doing anything to try to move it whether by updates, news on wins however small or anything else. Holding this is like holding a firework. Might be a roaring success /beautiful spectacle, might blow off half your body!
Sorry meant to add that a takeover bid could prove acceptable to existing shareholders at anything north of 28p. Anything less and I think it'd be rejected on the pinned hopes of AH making a turnaround and shareholders seeing better returns for a longer wait.
Most welcome... well I think CPI is already ripe for a takeover bid right now, that's because I can't see that another 1p-3p off the SP would make all that much difference to any takeover offer price which would have to offer something extra than the current price range to current holders but... I have to say that I don't think RWC share that view because else why sell the 1% they just offloaded? They appear to be betting a takeover bid will not be imminent with their recent move to unload.
Thanks SK-you seemed to indicate that this was ripe for a takeover bid-if that occurs at what level would you imagine would be acceptable to shareholders/the Board
Hi Trisor, I think it's very possible RWC may have been selling to counter losses on its other investments, perhaps. Either that or it may be their opinion CPI has further yet to fall, and they may have decided to either limit their exposure to those further falls or on positioning themselves to repurchase the sold share holdings for a cheaper SP? - Once thing I am more certain of... Given RWC selling 1% off I think they don't see a bid being immediately forthcoming.
As for prospects of a possible share consolidation for CPI - I think it'd be a highly risky move as it could trigger a massive fire sale by those with their triggers already hovering over the sell button... it'd prove hard to put that back into the bottle because so far as I can see the only 'hope' out there for CPI is the leadership that Adolfo Hernandez has brought to the table and many appear to agree that it'll take significant time to turn the tanker into calmer waters.
Surely a gold mine for capita?
@SK at what level?
Do you think it would have been wise for RWC to have sold with this in mind?
And finally, what are your views on a potential share consolidation ?
Capita is looking rather ripe for a takeover bid, I agree with that...
Another takeaway over target getting ready
Huge moves overnight by US dollar strengthening rapidly against Japanese Yen... However, I don't think Japan will be alone in facing down this issue and UK £ imo will face some trouble on this front in the imminent future too... Does a weaker £ aid Capita? How much of it's earnings are drawn in from business abroad in earned foreign currency?
No panic selling thus far
I believe a lot of the capita shares they hold were inherited when they took over running the deep value, underperforming temple bar investment trust, they’ve done a good job at turning that around but capita probably doesn’t really fit the new managers investment style, that could be why they are selling out.
50 will do for me!
I also think the chances for downside are less. 1% reduction means it is about 17 mn shares and the selling must have been going on for the last couple of weeks. Market must have been aware of this volume for sale and that was why the upward trend of 14+ didn't sustain , and always pushed down during this period. Selling pressure being out of the way SP should stabilize @13/50 or more. IMHO.
Savage - we are in agreement for once! I really don’t see a lot of downside here….. but saying that with CPI is like weather forecasting!
Given their sale already dented SP on Thurs 25th, (dropped at the open, again around 9am, and 13.30pm too)... I suggest there were plenty of buyers in the waiting for just a little less than everything they were selling because by COP 26th SP had stabilised...
No guarantee they will seek to sell some more next week and buyers appear to see value in the 12.8-13.5p range.