The latest Investing Matters Podcast episode with London Stock Exchange Group's Chris Mayo has just been released. Listen here.
JL will have to cash out his options on leaving. Presumably he doesn’t want to do that at 26p so - unless he’s barmy - I’d expect that he’s expecting a decent rise in the SP in the next 11 months?
Astute observation, Culley, about the relationship between business strategy and SP trajectory.
Acquisitions have a place in a well-managed growth business. Organic growth won't deliver more than low single figures. I would be delighted to see Capita starting to acquire strong, profitable businesses that are relevant to Core. That should be part of the growth strategy imho
Yeah , kidding aside, we need to give Adolfo a chance. I hope they get him on a briefing call soon so we can get a sense of his purposefulness, grit and determination to return value to the owners
You're not a loser TF until you crystalize a loss. Let's see what Friday brings.
As I said in my thread about the need for a buy back or divvie, guys like you bailed this company out. They need to recognise that and pull their finger out for the owners of the business.
As to the FT article about 'profitable software companies' being sold off, that's utter nonsense. It was a bunch of legacy tech debt offloaded with good riddance imho and Capita is better off without it. Back to the roots of the business - delivering public sector services and outsourcing. No tech liabilities but still high quality recurring revenues. More of that please.
As for the Inbetweener, we'll just have to see. I do have my doubts regarding the amount of hair gel as stated earlier ....
Hope he's not a fall guy ...
Yeah - depressing. A lot riding on Friday, that's for sure
If there is FCF being generated, the right thing would be to use it for a share buy back.
Capita has an ethical debt to the shareholders who opened their pocketbooks to bail it out through the rights issue in May 2018. That was nothing less than a shareholder funded bailout. At 70p or thereabouts if I'm not mistaken. Since then, those stalwart supporters have been treated like chumps and have seen their investment collapse.
I wasn't invested at that time, but I feel angry on behalf of those guys because it could easily have been me. The only way for Capita to pay down it's ethical debt to those investors is to buy back shares and do everything possible to return the SP to 70p plus asap.
IMHO
March 22 .... disappointment
August 22 ... disappointment
March 23 ... excitement ... then disappointment
August 23 ... ? I expect disappointment based on trend.
It'll be 24 or even 25 when we start to see the dial move on this, and the only thing that will do it is either a buy back or a divvy on top of solid earnings growth.
I hope I'm wrong, but it's very clear that investors are not significant stakeholders in the Capita view of things.
IMHO
Hopefully there's a tough business mind underneath the heavily lacquered barnet ....
Not sure I'm a fan of all the hair gel ...
Ok if you're an Inbetweener ... but
Looks like the good result was priced in and some profit taking happening today.
Hold, imho
Jon Lewis did an amazing job with the turnaround. He is the perfect turnaround CEO. He has built a foundation for wealth creation and growth for all stakeholders.
Now is the right time for this move as CPI returns to ambition and growth.
Adolfo Hernandez looks like the ideal candidate for the forthcoming growth journey. I particularly like that he spent the first decade of his career in sales and sale leadership.
Thanks, Jon!
Good luck, Adolfo!
Market seems to like the update
Didn't you comment that my 27p top-up a few weeks back was 'dumb'? lmao
Make sure you don't get off at the wrong stop this time ;)
GLA
Yeah ... that's what I thought: Italy 'used' inflation to reduce debt burden in the 80's but in the process became poorer. They then thought the Euro would cure their woes but ... well .... "Ciao, Silvio!"
Informative. Thanks BBD
Already priced in imho
If the earnings and FCF from Core Capita are growing, it's a bargain. If they are falling, it's value trap. Simples. Bated breath.
The vegetarian option is onion rings. Sorry
Devalue your currency and inflate your way out of trouble? Isn't that what Italy did with the Lira in the 80's? Is the Naira the new Lira?
Perhaps next Friday we should all have calamari for lunch in honour of Capita's results?
Https://www.fool.co.uk/2023/07/24/down-80-in-5-years-does-the-capita-share-price-make-it-a-no-brainer-buy/
The politics comment is odd. Starmer will be more like Blair and nothing like Corbyn. And Capita grew like gangbusters under new labour. I'd expect the same under a Starmer govt.
The liquidity analysis is old too.
Timid Fool? I think so. But at least starting to pay attention.
DYOR