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Thanks Dave_1 been repeating this a few times but the usual panicky type come back with "why Ho why!?"
It's annoying reading "why is this share price down 2% today... no news, or I can't understand why it's dropped 10% over the last 6 weeks.
Unfortunately the UK isn't very appealing at the minute, massive debt that's probably tripled now since the financial crash, majority of stocks won't pay divendeds this year which is why a lot of investors have sold up and gone for funds, gold and crypto. Market is being overtaken by day traders which is why only the big companies have restored to pre covid crash.
Covid isn't the only reason for this stock to be so low. I keep repeating myself it's a long term recovery stock. Have patience, hold and be rewarded.
I wouldn't bank on it. This share never does what it's supposed to do, and is flaky at best atm.
I'm in heavy here with a higher avg than the current SP reflects, so would be over the moon if you're right. Keeping grounded avoids any disappointment.
GL all the same.
With the result coming Tuesday, this should be at least 45 next week & around 50 within this month.. from the last week's trade it seems gearing up for a sharp jump
ESS sale
Surely rns's this month.
@try2buylow
I think the sentiment of the ESS sale is probably part of the issue. Its either being seen as a stress sale or simply an own goal.
We will just have to wait to see what Monday brings. Hopefully todays performance wasnt due to any leaks!!
@Try2buylow - Thanks - look at the outlook & Liquidity...
The sales are no fire sale... CPI is selling the business at the top end x14 multiple.
Outlook
Precise forecasting is challenging in these uncertain times.
We expect trading over the rest of the year to remain resilient, given the client base and the long-term nature of our contracts.
Before the benefit from Government VAT deferral scheme, we still expect cash generation to improve compared to last year as cash from trading operations improves and capital expenditure reduces. In addition, restructuring spend also reduces.
The disposal of the Eclipse business and the planned disposal of Education Software Services will strengthen the balance sheet and we are committed to creating a more focused and sustainable Capita for the future.
Liquidity remains good. Liquidity at 23 June was £832million, made up of £402m representing the undrawn part of credit facilities and £430m of cash net of overdrafts2. We will be repaying £165m of private placement notes when they mature on 30 June. We estimate that liquidity at 30 June will be more than £640m when we take into account the effect of this debt maturity, further operating cash inflows and the reduction in the backstop liquidity facility as a result of the receipt of the Eclipse disposal proceeds.
The Board believes that, based on a wide range of scenarios reviewed by management, our existing financing arrangements and mitigating actions taken and planned provide sufficient liquidity and enable Capita to comply with its banking covenants at the full year, and operate through these unprecedented times.
Uddin - do you want to read the RNS or hear great 800m - no 1bn? BOOM!! spare price 100p tomorrow
Don't y see why that guy panda got fed up with the poverty of discussion here?
This bunch of f**wits were forced to RNS about SIMS sale to quash "media speculation". If this business was sold a high proportion of the price will be profit as it was acquired way back over 20 years ago so no acquired GW to set against the sale unlike Eclipse. There is a high prize in selling. The problem for us is that there has been no announcement since the RNS. Lets all hope a sale is underway but who of us would want to have had to be forced by leaks to announce intention to sale during negotiation. How would a potential acquired be affected? Would they leverage all they could out of CPI's need to sale or let it go? Would they extend due diligence & let them stew. What would you do it your job was to extract what value you could out of a lesser competent management on the back foot? It was an own goal announcing it &, read the financial statements last year with a search for educational software - this was ramped for a hope for the future. It may be selling a core business out of stress, lets hope they do it or manage themselves better in future. IMO I'd have kept it btw, check is P&L
Buyers are flooding in, but still 2% down. The MMs are Manipulating the price
£2m Buys VS 800K sells .... This makes no sense....!
Buyers are flooding in now.
Sorry, a bit late to the party today. Have we had the news about the sale of ESS?
Well done guys for topping at a great price.
Great buying pressure building up.
Why is the price down when we have more buyers.
Was very tempted to buy more but already too exposed for my liking.
It was good to add today @36.5. hope to see a very good week ahead
The auction has started from £500m + for ESS. Big deals like this takes a few months to finalise.
You only need to see what CPI sold Eclipse’s for multiple of 14.1 times.
And do you know how many times Reuter published information ahead of any other media to build credibility on speculations and got them completely wrong?
I take it you have not been very active on here and not following what's been going on. If you are really invested in CPI, I suggest you go and read all the post from two months ago. You will find all answers to your misleads. I don't need to answer to a ramper. I simply would presume a person who is invested will not be posting smth this speculative here.
@Directive22 and hamm67
The ESS news has been out ages ago. CPI want £500m for it, so why on earth would anyone then go and pay £750m for it in this market !!!
Maybe no one earth but maybe someone from the moon might I guess!
Is this not what capita valued their disposal assets and letting the market know they are looking for buyers but no article mentions they talking to anyone
@DIrective22
Where do you think the media got a figure of £500m from...?
Have you ever heard of Reuters or Nasdaq publishing anything without hard facts...?
https://uk.reuters.com/article/uk-capita-divestiture-idUKKBN23Q34J
https://www.nasdaq.com/articles/british-outsourcer-capita-to-sell-two-software-units-2020-06-19
And where do you get the information about announcing the sale of ESS with 15x earning?
The news about selling ESS is out long time ago and those never mentioned or hinted about it being sold. So are you just another ramper with no credibility?
Sick of people like you sepculating and hoping to manipulate everyone these forums. If you can't back up your words, don't post anything misleading.
American media had news of the ESS sale. - "Media speculation regarding the potential disposal of Education Software Solutions (“ESS”)."
CPI will be announcing the sale of ESS to an American Tech company at 15x earnings.
£50m x 15 = £750m
https://uk.reuters.com/article/uk-capita-divestiture-idUKKBN23Q34J
https://www.nasdaq.com/articles/british-outsourcer-capita-to-sell-two-software-units-2020-06-19
I think CPI will be announcing the sale of ESS to an American Tech company at 15x earnings.
£50m x 15 = £750m
https://uk.reuters.com/article/uk-capita-divestiture-idUKKBN23Q34J
https://www.nasdaq.com/articles/british-outsourcer-capita-to-sell-two-software-units-2020-06-19