Member Info for bubbles59

The Capita plc turnaround has crossed the inflection point and we're nicely poised for a prosperous new year '24 and beyond.

A FLOOR has been created of about 16.5p from what I can see. The only way is up if we bide our time.

@ JG68 'And the other thing that concerns me is that this appears to have a book value of only 13p p/s'.

That equates to a price/book value of 1.32 which is insignificant for the outsourcing sector.For example Take a look at Serco and Mitie who have 1.66 and 3.26 price/book values respectively.

In addition, the forward p/e for Cpi is 5.5 compared to 10 and 10.5 for Serco and Mitie. Ergo a book value of 13p is nothing to be alarmed about when put into a proper context.

My confidence is aligned therefore with the CEO and Schroders that this will bear fruit in the medium-term.

I anticipate a 'modest' dividend (on resumption) of approx 0.75p per share giving a 'modest' yield of 1.5%, as at such event we can anticipate an SP of 50p. This event i anticipate should occur in the latter half of 2024.

That's a bit pessimistic xenor. I'm going for an opening of circa 17.7p. Gla

Not necessarily but if so, I'm ready to gobble up another 50-60,000 shares.

@passingthru

the investigation into the data breach has not been concluded so how can you be judge and jury without any evidence. any normal person would' not forgive the criminals', not'not forgive the victims'. it's people with your negative mindset that has unfairly caused the sp to drop to this level.

even on a very positive day you have to find reason to unfairly **** off the company who are the victims of the crime. i wouldn't be surprised if you were one of those ambulance chasers yourself! just rejoice!

This large new contract with the DWP demonstrates that the data hack incident has had minimal impact on Capita's reputation in terms of their data security integrity. It bodes very well for the future.

@gotoutjustintime, If you do decide to buy back in, I wish you all the best of luck.

@gotoutjustintime, fair enough,we all have our own opinions but I don't think that over those years analysts/brokers can be blamed for unforseen circumstances which put the kibosh on their forecasts. Major events such as Brexit, Covid22, Ukraine invasion and hyper inflation with huge increases in interest rates etc etc.

Now that the restructuring is virtually complete and debt eradicated, and with a strong pipeline for contracts going forward combined with a sensibly disciplined approach to pricing and margins, I'm confident that they've turned the corner. They even outlined in the Interims that they are 'On Track' for full year forecasts. The SP was advancing splendidly and would have continued doing so in excess of 40pence but for the Elephant in the Room,viz the data hack and concomitant uncertainty.

This will blow over in due course I'm sure and then we'll continue on an upward trajectory. My confidence is aligned with the Chief Financial Officer who as you know recently gobbled up a large chunk of shares. And who is better placed to understand that it will likely be seen as a shrewd investment in the fulness of time.

@gotoutjustintime,

So I presume that,(assuming you are a holder), that you would be more comfortable if all the Analysts rated CPI as a sell. Or perhaps you have gone Short which would explain your negativity.

From 'Stockopedia', Of the six Analysts covering Capita plc, five rate it as Buy/Strong buy and only one hold (not a single sell rating).

Consensus 12month SP Target is 40p suggesting a 142% Upside.

From my Fundamental view point, I can see this testing 50p and higher by Xmas'2023...imho

It's not beyond the realms of possibility that >60p/sh could be reached in the near-term. After all, not so long ago, the SP was going at well over £1 each despite the company being in a much more precarious position than today with the threat of insolvency. The balance sheet is much more healthier now and future prospects look to be potentially much more lucrative.

No wonder the CFO has put his money where his mouth is, and there's nobody better placed to realise the prospects here.

To all intents and purposes, the SP has surpassed it's nadir and has essentially stabilised prior to a significant advancement towards a more realistic valuation in the near-term. There's no logical reason as to why it ever reached such a pathetically low price, other than inefficient market dynamics. My expectation is that it will be in excess of 30p this year,possibly by Xmas.

As to the longer-term, thanks to the successfully completed restructuring programme, this is potentially a multi-bagger given the very strong pipeline and the adoption of disciplined pricing with regards to realistic and profitable margins.

Up 6.5% in just the last five days. It would appear that the background institutional seller has shot his bolt! Bring on the roaring twenties!

Do you seriously suggest it could go to 5p then? That would produce price/earnings ratio of 1 approximately. Unlikely considering the company is virtually debt free. The probability is for the SP to advance significantly from hereon in.

Correct NOFEAR,Stay Strong. This is not the time now to start to wobble. It's the time to hold your nerve. Shore Capital are right to assert that anything below 30pence per/share cannot be justified. .Some are panicking when in reality, it's almost certainly a great time to add at this bizarre level imv.

Good luck for your 10-15% punt. There are serious investors here however that are realistically contemplating a 5-bagger+ from here in the medium-term.

Some of us recognise that the de-ramping is seriously OTT. If I was so negative about a company I was invested in, I'd sell up for an investment that I believed in. Or perhaps they are not invested and they foolishly believe their de-ramping can influence holders to sell thus engineering a lower entry point for themselves, or they have gone Short.