Member Info for DIrective22

Possibly reacting to Scotland full lockdown announcement today.

https://www.educationinvestor.co.uk/exclusive-private-equity-bidders-pour-cold-water-on-price-expectations-for-capita-ess/

Probably this link and just took 700mil, the impossible best case by bankers from goldman sachs as compared it to actualy sale of 400mil. That's like sticking your head too far up your a** and being able to see your mouth.

I'm really baffled with people saying ESS sale was terrible. Considering the timing of the sale, the price they are getting and already looking at ESS as non core business part, It's pretty good.

People are stressing on the fact that Capita announcement of sale anticipation of up to 500mil and not getting it when it's sold. To make it simple enough, try to sell smth you own on Ebay and price it what you want and see if you get the same price you listed. You be telling yourself very lucky when it gets sold for 75% of what you listed.

I know it's different but it's still the same in principle. 400mil must be like fume for the rich people ayyy.

I’ve been holding for a while now.

ESS is sold.
Brexit deal done.
Vaccines approved.
Billion pound contract won.

Yet it is most hated by media and price is falling. It’s so frustrating.

Deal is done, but the contents of the deal are yet to be revealed. Otherwise, the reaction would be premature. I'm starting to doubt the market would even react this year to the deal.

Dead is done. Everything that the British public was promised during the 2016 referendum and in the general election last year is delivered by this deal.

Finally.

I know it's very thin and very close to Brexit deal deadline. But I'm still positive that a deal will be struck soon. Not predicting anything about a good deal or not. But the deal in place will settle down the panic and the market should rise again.

Both UK and EU play balls over the last few weeks of Brexit negotiations and both sides starting to feel the damage they are doing to themselves. They should not and cannot double down on the Economy with both Covid and no deal Brexit. I'm optimistically hoping an agreement for a deal is in place as soon as tomorrow and put all this panic down for good.

But of course like what people argued to me before, everyone has the right to an opinion on this board to discuss and post,.............. as long as the opinion is not agenda based to manipulate other share holders. Also, nothing is holding back to post agenda based opinions except your own moral compass, which is mostly next to non with some individuals we have seen before months ago on this board.

Anyway, GLA for tmr opening. Don’t think things will be significantly better. But hopefully, the price will stabilize as of last week closing through to the end of this week and turn around by the next.

No offense to anyone really. But it seems very typical on LSE that whenever a share price falls below what people are anticipating, there’s always someone else saying RI is coming. It could happen. It could not.

I just don’t think this is not the case for Capita. Not because I am invested in this. The consequences of RI are far too high for Capita than the actual net debt to repay. I like to think Capita board is still bright enough to know this.

I don't think a company will or can issue RIs just because there are uncertainties. And the RI will not be successful as well since the meda hate Capita so much that even when contracts are won, they relased news to criticize the government for awarding. That's what they like to focus on. if Capita issue RIs to raise cash, There will be no coming back from that for at least two years.

I can already imagine that the media headline be like "The fall of the next Carillion" Capita issue RIs despite disposal of their education division as they cannot repay debt and turn around is way off track, blah blah blah. Debt is high but the consequences of Bad press is higher. Capita can repay debt on higher margin of interest over time if the turn around is complete with their sustainable cash flow in a few years. But Capita certainly cannot afford bad press.

I bought in a bit more as well.

Schroders buys and sells has been very odd lately and manipulative, they sold their holdings before as well when capita was at mid 20s and a week later, the share rose up to low 30s. They bought back in at around mid 30s and holding ever since to this day. They have dumped 1% of the holding now. If Capita is SP is about to collapse, they will sell more than 1% of their current holding to make up what losses that are coming. If Schroders are dumping because of the SP collapsing, why is RWC not selling as well as they bought in at low 30s as well. Why are they dumb enough to hold instead of dumping all???

400-450 mil range was exactly what Capita were expecting. They never expected 500mil though they said they could get up to 500mil. It's pretty basic strategy to price higher for something you're selling so that when it gets sold, it pleases buyer while seller gets the price they really want. 400mil is peanut, very cool,...

Short position at 0.67, lowest in two years and lowest happens as of this Monday. This should tell a very good story for what will happen next. Window of opportunity for shorters to exit or else get burnt.

I don't know why this take over rumour is flying everywhere on this forum. As far as I am aware, this started when Capita sold eclipse and announced that ESS will be sold. Then few companies started showing interest in ESS and started bidding. Then this rumour started about Capita being offered for take over blah blah blah rather than for ESS. Capita then release statement responding to rumour. Since then, people just took it as a sure thing that Capita was offered a take over and it was not agreed.

This is Lame.

Ah, i corrected myself wrong when it was correct. Apologies, I'll stop posting now. lol

But Capita never was NOT expecting £500mil at all**

Typo in my first post

But Capita never was expecting £500mil at all. 400 to 450 (best case) was what they were hoping for and they got exactly what they wanted and needed.

Simple strategy is not to tell people exactly how much you want for what you're selling. you always ramp up the price and expect 80% of what you are selling for. In all fairness, I think Capita got exactly what they wanted in the first place.

Up to 48.55 and down to 46.28? I can't find any sense in this. It's so frustrating to see sometimes.

Is it because of the high infection rates down south and possibility of going into tier 3?