Member Info for Arthuretta

Agreed, its lost around 25% of its value over the last year, but factor in the weak pound and a US buyer could now get this at something like a 40% discount to this time last year.

Anyone else think a bottom is forming here at 1180? It's held up well over the last week. Any technical analysis experts out there?

"It’s worth noting that Mities p/e even after today’s drop is 30.73 v our p/e of circa 2"
Again not the whole truth. Just using the most flattering figure here to make capita look as cheap as chips. If you use adjusted earnings to calculate the PE then Mitie is sat at around 7.5 whilst capita is at about 17.23... not so cheap, with everything that has changed at capita over the last few years probably not the best measure of value.

"So the Navy gave Capita a £1 billion, 12 year contract that commenced April 21"
No it was a consortium that won the contract, led by capita true, but that revenue will have to be split between the various partners of Fisher Training, no idea how much of it Capita will get.

" no-clue Aimster and Arthuretta are still trying to stir up the pot with inconsequential news inputs"
Sorry but I believe the fact the navy and RAF switched to an off the shelf solution last year costing them less than £10m for a 3 year contract whilst the army decided to continue with DRS at a cost of £140m over 2 years shows how vulnerable some of these large capita contracts can be, I know its old news but still relevant. Do you really see the government entering into new large scale bespoke solutions like this anytime soon, given the risks Truss and co are taking with the country's finances? Labour also likely to get in at the next election. I now see better growth/recovery opportunities elsewhere but good luck to all holders here I am sure you will do well.

Aim has a point, you have to question why the hell they did renew it. Riddled with issues (not all of capita's making) and in the meantime the navy and RAF ditched capita's DRS for an off the shelf solution costing a fraction of what the army are paying capita. I don't think this is a contract capita should be proud of, hopefully they will do a better job over the next two years and continue to reap the rewards.

"Carnage out thereee...pure capilation taking place. Imho"

If and when we get capitulation history tells us that is the time to invest big time
(I certainly will be, lots of cash on the sidelines)... I don't see it yet, VIX index rising, but would normally expect it to hit 40ish when capitulation occurs, if there are no buyers for this dip in the next day or two then maybe we are finally seeing the bottom of the bear market, otherwise we will probably just get another bear rally. CPI holding up well :)

@Xenor
You weren't wrong, It wasn't the .75 rise that caused the panic, it was the hawkish comments from powell and the fact they now see rates higher than previously indicated by year end at 4.4% then 4.6% in 2023, before falling in 2024. Along with that they flagged the prospect of lower growth and higher inflation they previously expected. Risk of US recession is increasing by the sounds of it.

"My pension is administered by Capita and I get a wage slip every month.. why this cannot be done online ? Is my only gripe ."
Do you mean they actually post out a pay slip? That seems mad in this day and age. Surely there is a big cost saving they could make just by doing that online. I wonder how much that is costing them every month?

From what I can work out Fed have slashed growth forecasts, raised risk of hard landing and raised expected year end rates from 3.4% in June to an estimated 4.4%. Thats another .75 and .5 rise this year. Initial market reaction seems bizarre to me.

If the S&P doesn't hold the current level then I think the fear is it will likely tumble to 3600, so it's a real fight between the bears and the bulls at the moment... not that it is relevant to CPI in the slightest.

OK it took 25 mins but all the indices are all seeing common sense again and back in the red... as I said crazy...

It will all be back down in 10 mins.... daily fluctuations over there are crazy at the moment.

Looks to me like around 7 hedge funds have short positions totaling over £200million, they are not all going to close in a day, but if you are right and they do start to close then this could be a good recovery play, its on my watch list since I actually like the company and am a customer. Their active savings offering is excellent, but I suspect low margin compared to the rest of the business. They are also cheap (IMO) for ISA's and SIPPs, but only if you steer clear of investing in funds.

over 5.5% short positions open against this does not look good. Cannot see this going anywhere with that amount of short interest, obviously very little confidence from hedge funds in this recovering anytime soon.

I've sold out in the hope it repeats it previous trading pattern and I can buy back cheaper again around the 25/26 p range, but knowing my luck it will probably keep rising this time. Good luck to the long term holders.

Rearrange the letters in Aimmaster and you get "As Marmite".

Rather apt that according to the MacMillan dictionary online, If something is described "AS MARMITE", then there’s no way you can be indifferent about it or express minor shades of like or dislike. No, if it’s AS MARMITE, then its very nature forces you to firmly sit in either the ‘love it’ or ‘hate it’ camp. I think the same can be said of aimmaster.

If the CEO is correct this should be higher rated than Serco, isn't that part of the reason for all the pain of the restructure? Would be interesting to know what others think.

Quote from recent interview
"He insists things have moved on and is mystified why Capita is still compared with the likes of Serco and Mitie rather than a rival to Deloitte Digital, Accenture and Infosys. "

Never thought I would see this at £10, another one added to my watchlist as a recovery play, but the chart looks horrible at the moment. Maybe once inflation peaks it will start to recover? That seems to be the main worry reading through the last results.

@aim I think sharehead is pretty spot on.

ITV would lose advertising in a recession.

TW would would have a hole blown in its balance sheet if house prices fall. Land would fall by more and yes they could pick up land cheaper, but they would have to write down the value of existing land bank. Don’t go there if you think house prices have peaked.

Stick with CPI