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Foresight a marvelous thing!!
Looking forward i can see CPI back in FTSE 100 sooner than later.
Drawdown read it somewhere, so despite the evidence to the contrary, it must be true. What a t*at.
Actually it's not important at all as not only did you know I had read that as I made that clear, you managed to solve or add nothing by your comment. So sorry, no break!
I just wanted to correct some factual errors on this thread. It's kinda important when discussing whether a potential buy is able to bid for new contracts, which you asserted they weren't. My expertise is not trading, but it happens to be procurement.
"Actually DB gave an informed opinion on the overall government outsourcing market. The contracts CPI won were all existing contracts genius. It can't bid for large NEW contracts even if there are any. Hardly a growth company if it is living off existing contract wins. Why do you think it recently announced a new business operation targeting non government contacts!"
So perhaps give me a break?
Give me a break. I read they were not part of the framework in the autumn. Is that better wording Mr pernickety! Does it not amount to the same thing. Grow up.
RE: Drawdown 12:09
Sorry, they don't. A framework is for typically 4yrs + extensions and suppliers are only removed in extreme circumstances. They are not "left off" as the supplier list doesn't change through the life of the framework (unless, as above in extreme circumstances). Capita can bid for any available contracts as they want to. Whether are successful is a different matter.
A public procurement framework effectively works exactly like that.
Does anyone know what happened to the Woodford holding of CPI - has that all been sold?
Public procurement doesn't work like that. Anyone can bid for public contracts, there is no block. A company may not be successful for many reasons but they cannot be prevented from submitting interest.
Last post removed my link.
but you can check for yourself on crowncommercial dot gov dot uk/suppliers and search for capita
Ignore the rating if you like, but at least read the analysis and you can make your own mind up about the government outsourcing market. Cpi was reported left off the governments framework list in the autumn . Hence you only hear about existing contract renewals. And if it sees a great future in government outsourcing why is it investing heavily in the non government outsourcing market at a time when resources are scarce. The clues are in there genius if you are betting all will be fine so it can be get back on the governments framework, it's market will grow, it's new vebture will be successful, etc then that is your choice but you should at least know that.
Yes, Drawdown, we all know how accurate the 'informed opinion' of broker ratings are. If any government is likely to increase outsourcing, it is this one. On what do you base your assertion that Capita 'can't bid for large new contracts'? Again, pure speculation. That might well have been the case in the wake of the Carillion crisis, when Capita itself was in trouble, but the company is now well managed and its recovery plan on track.
Pardon me, but I'm more inclined to take my cue on the future of Capita from the IIs that own circa 85% of the company, than I am from a single broker rating.
Actually DB gave an informed opinion on the overall government outsourcing market. The contracts CPI won were all existing contracts genius. It can't bid for large NEW contracts even if there are any. Hardly a growth company if it is living off existing contract wins. Why do you think it recently announced a new business operation targeting non government contacts!
The DB downgrade is speculative. Ministers love outsourcing because it means that the contractor and not the government takes most of the flack when things go wrong (or are perceived to have gone wrong), regardless of where any 'fault' may lie. Most of the government outsourcing problems with Capita were legacy fallout from the old regime. Capita were also very bad at handling negative publicity, which seems to have changed with the appointment of the new head of external communications. Capita has recently seen multiple renewals of government contracts (local and national) and there is nothing to indicate this trend will not continue.
a downgrade by DB should not be dismissed lightly. Moreover, CPI is reportedly not currently on the government's framework so it can't even bid on new public contracts even if the market now stops declining.
Agree Rogue.
2/3 years from now this sp will be dizzying around previous mid high points one hopes
This week saw another gross overreaction to a single broker downgrade. I'm sure it will soon be forgotten, given that Capita's recovery plans are still on track.
180.80 GBX +5.30 (3.02%)
16 Dec, 08:53 GMT · Disclaimer
200 it was 1400 just a blick away
Provided the next set of results are in line with expectations (and there’s nothing to indicate they won’t be), I think we will see 200p by mid March.
A nice little tick up yesterday due to relief at GE result. The question is where does it go from here. I am continuing to drip money in to build up my holding but I would like to see some (profitable) contract wins, further progress on the financials (profit, fcf etc) and some indication as to when it may return to the dividend list if progress continues. Next update might be interesting....