Capital Share Price (CAPD)

They've today raised their target price slightly to 156p (from 154p) and say Buy:

Https://investing.thisismoney.co.uk/broker-views/CAPD

I agree. Two good contract wins here. This should secure our revenue stream for the coming couple of years. Still very hard to work out what their growth trajectory will be though. The B2Gold win is the more significant of the two IMO as it is new business. If that performs well then they are in prime position to expand that contract further. Not long to the H1 results - that will be key. I would like to see some growth on Q1 otherwise they are effectively treading water currently. I am particularly intrigued by what they say about MSALabs. That is the hidden gem in my view.

JL

very good contract win and only adds to value to business. Shocking current valuation.

Great news as regards (1) the statement about continued "very strong demand", (2) the securing of $150m of revenues from Anglogold and (3) the new customer and contract win from B2Gold plus the MSALabs extension.

The revenue visibility going forward for CAPD is now extremely large following the Anglogold contract win. The markets should respond well to this.

Judging from today's trades, with a hefty (in these markets) 388k shares traded already, it just looks like there was an early forced/desperate seller who had to get rid. Plenty of funds out there I'd guess having to sell due to redemptions or need for liquidity.

The gold price is still high and looks like remaining so for some time to come. CAPD's core business is thriving. I saw a post from kaizenkid elsewhere noting that the portfolio is still worth $43m - the weak pound is working in CAPD's favour in translation terms, so that's still a very nice £35m or so, i.e around 25% of the m/cap on its own.

It's worth reiterating that the core business is forecast to make $80.5m EBITDA and $53.5m EBIT this year (i.e before investment gains/losses), i.e around £44m - and $37.5m PAT against a now £146m m/cap.