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Definitely for long term for me. The company is also finishing up with it's restructuring and the sp is already upward before Covid so I thought this has the potential for long term hold. If with Dividend payment starting next year or so, that would be cherry on top.
The danger with selling to go off to other, more profitable, shares is that you may miss opportunities to buy back. I suggest always have a firm strategy... are you buying to hold for long term gain or to trade shorter term volatility? For Capita, I have bought for the value and will hold for longer term gain. I have bought other shares for the volitility eg. AML and Taylor Wimpey
Agreed, this needs to be hold for at least a couple of months to reap profit as I mentioned before few times. This is not going up anytime soon like everyone is anticipating. I go recognise the fact that with CPI, the share price can be unexpected and risky at times. But given the circumstances and the company turn arounds, things are looking toward the bright side. My dilemma is that whether I should reap in short term and relocate everything into a different share which pays dividend and more stable or can Capita calms me with my worries and will start paying dividend soon. I just received dividend even in times like this from the share I sold, IUKD to buy Capita and it's definitely a lot more stable. It's still cheap for me to rebuy it after reaping short term profit from Capita. But if I know Capita can fill in the shoes of IUKD, my previous holding, I'd be a billionaire ayy :D.
I'll be honest here and perhaps a bit controversial... I think there are a lot of people who comment on the SP that don't actually have a clue what they are saying and have no clue how to value a business. Also, there are too many people who "listen" to comments made and take them as gospel. My advice as always... DYOR!!! Don't trust someone else's research, but if someone suggests my feelings or research is wrong then try and understand them in case they know something I don't.
For what it's worth I believe that this price is "cheap" and short term fluctuations don't scare me, as I see it, I need to hold for up to a year to make what I consider to be good profit... if the price drops from here and I have more to invest then I will consider it, but not to chase my losses down if the fundamentals change. This is a sound company, that seems to have been caught up in the "noise" of Covid and is down in price mainly due to sentiment
These are some hard facts that I am investing in CPI. CPI is winning contracts and growing the business.
The sale of standalone software (£900 + ) is more than the market cap.
https://www.thisismoney.co.uk/money/markets/article-8448075/MARKET-REPORT-Eager-investors-pile-Capita.html
North American healthcare providers and patients to benefit from better clinical decision making
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North American healthcare providers and their patients will benefit from improved clinical decision making and triage thanks to a new partnership between Healthwise, Inc., and Capita Healthcare Decisions.
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Capita announces today that it has rapidly deployed its largest ever virtual workforce – to support the UK Government’s Covid-19 relief effort.
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Capita today announces it has been awarded a contract by Irish Water for the transformation and operation of its customer contact centre services.
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The challenge on these sites is to find balanced views. Filtering out the “this baby is going to the moon” from the “it’s heading to 10” is essential before taking a stance. Plenty here and said that in this share would go to 60 or below 30 the last couple of weeks. It has done neither and I believe it will not for the next month.
I get the argument put forward but I have to ask why do people think they have seen something others are not?
It feels like the attitude “no I’m right I’m right”. The SP Drops more. “Ha ha they are missing out Im going to add more”. The SP drops again. “Right this is so cheap I’m gonna add again”. Etc
We are not at this point yet with Capita but those saying they hope it drops to 30 so they can get cheap top ups are out of their mind.
I personally like derampers (Piad people that dont like a share but look at it all day)
it tells me someone wants the shares enough to bring the price down to snap a bargain
I get your point Learningtrader, but none of us know the short term directional movement of a SP, if we did we'd be making millions. What we do conclude (hopefully) is a "true" share price based upon fundamentals; a value investor buys at a price that represents a good value against it's anticipated real value. In very simple terms this could be current price versus pre-covid price (I appreciate that the reality is much more complex). If I buy at a price today, and let's assume I have invested only half of what I think I could afford to invest, if the price falls you are suggesting I shouldn't invest my other half because I am now "chasing" the price downwards or "chasing my losses". Surely I am merely taking advantage of the downward movement?
I agree, as already stated, that if something has changed the fundamentals e.g. the company has lost a £1m contract that might affect the company value, that it may not be so wise to invest more, but we are assuming that our due dilligence still suggests the real value of the business to be higher than it is today.
This isn't an insult but merely that I'm not sure that you are explaining yourself very well?
If you believe the share to be a good long term hold, as indeed I do, and as such believe the SP is "cheap" right now then why not invest more if the price is falling. Usual caveats applying of course!
Fair question. Firstly I don’t profess expertise as while the ongoing trend is upwards I still make mistakes.
Secondly, I think Capita could be a good long term hold, overall looks good but it’s not without reasonable risk. This is where the ‘losing trade’ piece comes in. I call a losing trade anything you are in and currently down in. To add to this because one ‘believes in the company’ appears logical and sensible but is actually flawed as we can look at all the numbers, reports and graphs we like we don’t truly ‘know’. With this why would we add to an already losing trade? Perhaps others here have been successful with that strategy, fair play if this is genuinely the case, but in my experience it may go wrong less often than right but when it does go wrong it’s disastrous and undoes much good. My catastrophic 2012 was largely due to doing precisely this. I just ask people considering adding to a losing trade why are they SO SURE that this share is going to turn around to pause and think.
No doubt I’ll be greeted by insults and deramper accusations as it appears unless one is saying ‘we are moon bound with this share baby’ your opinion is dismissed.
https://www.google.co.uk/amp/s/www.proactiveinvestors.co.uk/companies/amp/news/922431
Same approach here, thinkIknowwhat.
Often MM's will spike down to stop hunt then raise the price quickly afterwards to a fair value of the current state of affairs. They are all crooks.
Why do you call CPI a losing trade? Just curious, I don't think you have explained why other than the price dropping today. I mean people generally are accepting if someone give a reasonable argument to call this a losing trade and you have not? And here comes my favourite question, Which one is a good example of winning trade now?
I don't set an automatic stop loss, for that very reason, but keep a very close eye on what's going on... thankfully I have the benefit of having a screen constantly on market activity
Well educated investors don’t say things like “this share is going to the sky” . These are words that junior investors say.
Grow up and let’s have adult discussion without this infantile language.
I agree re: stops.
The only trouble is that a stop won't necessarily activate at the price you set. Say your stop is set a 80p for a share trading at £1, then bad news is released and the price spikes down to 50p market value, then that is the price you will get even though you had it set at 80p. Stops aren't a guaranteed out value.
Stop limits are better as you can set a limit at where you're prepared to sell in addition to your stop value. However there is no guarantee this will be filled, and you could lose a lot more.
At least with a stop loss you're guaranteed to get a large proportion back.
A trailing stop loss is also an option, as it moves as the SP increases.
Those who know I'm not trying to get you to suck eggs, but those who are new this is useful info.
@Learningtrader - Are you losing your house because you put a short on CPI.
This Share is going to the sky...!
Close your short quickly and save yourself some money.
We have well-educated investors here who can see your lies.
Surely the best advice anyone can give is to set a stop loss at a level that you are willing and able to accept, that way you don't lose more than you can afford
It hurt big time and I nearly lost my house. Now I’m financially well positioned, I hope others learn from my mistakes.
Never add to a losing trade! Never.
Learningtrader Sorry but I really don't get your logic! If I have done my research correctly and believe that the fundamentals remain i.e. I believe the SP is undervalue, then I so no issue in buying more shares... be that as the price dips or even if it rises, as long as it is below the anticipated future value.
I agree that if a fundamental changes then you need to revisit the valuation, and also chasing losses is not the right way forward. Investing is a gamble, but should be a very measured gamble
GL, I am sure you know what you want to say but maybe can't eloquently explain it so we can understand
that must hurt
why wait so long to join the chats.. fed up making millions and not being able to tell everyone
Never.
Add. To. A . Losing. Trade.
It’s 101 guys.
Yes and year one I lost 380k!
learning trader
you told a different story on another share!! really you wally
'Bit of sensitivity merely supports my theory that most here are kids or people with very minimal experience or expertise.
My name is apt because we are all learning. In 7 years I am a total of £1.6 million up but within this I have made some stupid errors. The day you think you are not a learner in this is the start of your demise.'
If you can see value in a company, and realise that the pull back is due to general market unease with the current situation, then I disagree entirely with you about averaging down.
This also isn't a 'losing' trade, it will breach 50p no problem on ESS news. Can't you see that?
If I was £1.2m up I certainly wouldn't be wasting my time on these boards.
LIke I say, it all depends why the price has dropped. Providing the fundamentals are still the same and there is no driving force behind a small drop in price. if you are still confident in your decision to invest in the first place, you can make a calculated decision to invest more and bring your average down a little.