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Trisor
Capita has started to expand its European operations and infrastructure. Its early days yet. I expect the indian operations to shrink slightly as Capita reconfigures.
In fairness these plans were already in place!
I would also expect a new CTO within 12 months. Part of the new team structure!
Hopefully the Governance process will be in place and the old hatchment management gone as part of the £100M reduction!
Moving on up 15p inbound!
I had better get buying some more then. Could be a good day if US inflation is better than expected.
Momentum looks like it could get close to 15p imho
Looking like that ‘dead cat’ was made of rubber!
Well timed GC.
Nice bump :)
How do you do AimMaster2018
You'll better ask Xenor.🙄
I've bought a 25k chunk just now in my SIPP. I'm happy to keeping adding at these levels if the UK markets thinks it's fine to keep it marked here at these levels.
Has 13p forever gone. We shall see soon imho
There's your 14p, so should break out imho
Can anyone think of an AI enabled outsourcer that might be able to help Labour collect tax?
https://amp.theguardian.com/business/2024/apr/08/labour-to-launch-5bn-crackdown-on-tax-avoiders-to-close-gap-in-spending-plans
Well I must say it makes a pleasant change to see some blue
If Adolfo was capable of stripping out £160m out of this business in what appears to be a reasonably short period why could JL. I mean he only had the rights issue and then the sale of the businesses to play with. I just cant see any rationale explanation other than inept mismanagement
As for Takeovers -I cant see who would buy this given the government contracts. What I personally would like to see from the strategy update is a diversification away from the public sector and a much more aggressive international strategy. I simply dont trust Labour to run a bath . Starmer and his team are far more left wing than they are making out in my opinion and Im concerned that they will be having an irrationale look into outsourcing and increasing the state like their misconceived policy of charging VAT on education. Thats already petty ideology
If Schroder are averaging at 69p then a takeover seems like a pipe dream unless they are willing to accept a loss. Who's going to offer 5x current SP on a inefficient business like this. 3bn turnover is pure vanity when profits are none existent.
Adolfos plan needs to kick in... Unfortunately that's our best hope.
@Trenors ,
I totally agree ,
Also it Would be nice to find out Schroders (spelt correctly this time ) 🤦🏼♂️correct average.
Atb
@voli.zh
Not sure of the implications I would run it past Aimmaster ,
but here are some figures of Uk takeovers from Schoders .
https://www.schroders.com/en-us/us/institutional/insights/are-overseas-takeovers-a-threat-to-the-uk-stock-market/
All the best
@DarkBlue: What would be the legal situation for a Capita takeover? They have a lot of government contracts (MoD, Police, Home Office, DWP, etc.). I can't imagine that they could be sold abroad, or with massive restrictions where data is allowed to be processed.
@DarkBlue
With Schroders holding 34% with a 69p average (according to No Fears data although I always thought it was 46p) then I can see how a cheeky takeover is going to be successful here ..... and that's possibly why we haven't had any cheeky offers (that we are aware of).
Only way for us weary investors to make a profit here is for the business to start making a profit and paying a dividend!
Thank you darkblue, yes, takeover is what I hope based on current valuation. At these prices I expect to be couple of bags. Anyway, all being well, expecting test of 14p today imho
From Bloomberg news ,
Allfunds, UK Stocks Touted as Favorite M&A Targets in Survey
Lower equity valuations set to drive more M&A in UK market
Allfunds is favorite overall pick, followed by Covestro
More UK firms are tipped to be takeover targets this year as rock-bottom valuations spark an M&A boom among the country’s stocks.
British stocks accounted for 70% of companies mentioned at least twice in an informal survey of 18 risk-arbitrage desks, traders and analysts conducted by Bloomberg News in March. They included companies such as betting firm 888 Holdings Plc and Direct Line Insurance Group Plc. Overall, Amsterdam-listed Allfunds Group Plc won the single greatest number of votes.
The FTSE 350 Index’s record 45% discount to the MSCI World Index on a key M&A valuation measure, the multiple of enterprise value to earnings, is luring bargain hunters. Recent predictions have touted the UK as ripe for a takeover wave following a period of deteriorating business confidence and tough financing conditions.
Smaller companies in particular have been attracting attention given their valuations slid substantially amid persistent outflows from UK equity funds, according to Ken Wotton, Gresham House Plc’s managing director for public equity. The extreme, once in a generation kind of discount, has been noticed by cash-rich private equity firms and strategic corporate acquirers, Wotton added.
“This has driven a steady stream of announced takeover approaches and, in some cases, public bidding wars have ensued,” Wotton said.
There have been 14 takeover offers for UK firms with a market capitalization of at least £100 million ($126 million) this year. Among notable deals, Nationwide Building Society is buying Virgin Money UK Plc for £2.9 billion, while International Paper Co. is in talks to acquire DS Smith Plc and Barratt Developments Plc has agreed to buy rival Redrow Plc.
Investors are also keeping an eye on Allfunds, which Bloomberg News reported on Monday has drawn interest from investment firm Motive Partners. This follows a Bloomberg News report from last November that the fund distribution platform was gauging takeover interest from private equity firms. Expansion has reported that Euroclear and Brookfield are among interested suitors.
Link https://www.bloomberg.com/news/articles/2024-04-08/allfunds-uk-stocks-touted-as-favorite-m-a-targets-in-survey?srnd=homepage-uk
@NOFEAR ,
Ok thanks for letting us know ,
👍🏼🙏
Good Morning DARKBLUE
I have not forgotten about what I promised you. I've actually made high quality screen recording of the Capita plc company institutional investors data that FactSet has gathered up to date and for which I shall hopefully soon be sharing with everyone that wants to know a bit more about Capita background as institutional investors would see it either using their Bloomberg Terminal accounts or the cheaper version but not as good the FactSet workstation as I'm currently still using.
Best of luck to everyone
When your average is high teens / 20 ish, buying at low 12s / 13s really makes little difference to me , unless you're just in for a trade.
If he turns this around and a majority of the cost efficiencies turn into positive free cashflow from next year, 12, 13, 15 will all be good entries.
If he doesn't then long term holders will get wiped out .
Imo this guy has to be given at least 18 months until HY25.
Low 12's were last week. I wasn't sure that was the bottom so have held off. No idea where safe entry may be, but short term 13+ seems fair....?
I thought this would be valuable information for all.
My pension scheme was one of the victims of the data breach last year. Capita stepped up and provided all of us with free Experian membership. None of our pensioners has actually suffered any loss by data potentially harvested by the leak, as a group we have therefore decided NOT to persue a claim relating to this breach.
I also know of another pension scheme that has reached the same decision. To be fair to Capita it looks like they did a good job of closing the door quickly and limiting any risks.
Go CPI - agree calling a bottom on this is impossible but I’ll take my 12.5p and this area as a decent shout
I'm happily buying at these levels. I'm not clever enough to know or decide where the bottom is and I'll continue to accumulate if this hangs around these levels!!