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A rising Dow Jones and FTSE is translating into a rising Capita. This is quite pleasing as this share has at times seemed to defy logic and swung by unseen forces.
Capita the unloved share is moving tentatively forwards and I would like to see who is acquiring as it will give an indication on sentiment.
Clear reports and market updates needed from Capita, Lewis must stay chatty and be extremely careful in every word as we have seen the sp bomb based on no more than poor choice of words which leave uncertainty on progress.
Personally, I want to see debt reduced to low levels (some debt can be useful), but strong overall performance.
Lewis might want to think about giving insight into what Capita plan to do with its profits.
If the debts are indeed paid off and the company has restructured, what are you going to do with the surplus?
The long suffering share holders are due a win, some of us have endured tail eating and dramatic losses. It will be time to pay us back with dividends and a focus on SP strength.
All IMHO. Gla and enjoy the sunshine.
SMS1 fully understand that all share dealing is a gamble but there is a major difference between those who focus on a companies worth and its future and those that only concern is if a price is red or green. Ask Warren Buffet, he probably has the best metric for a companies worth and has made money hand over fist by investing in companies he feels are worth it.
When it comes to it, it's only money and like most things in life, of limited worth.
Far more important is integrity and good health.
Shorting is casino style gambling. Trading on bad news.
The only solace I find in this activity is that when the shorts get burned, they can end up losing their shirt if a SP takes off like a rocket.
None of us investors will care two hoots for them.
All IMHO of course and GLA.
The cap weight to re-enter the FTSE 250 will be largely driven by increases in the share price but I have been looking at the FTSE 250 performance and its volatility and how its shrunk by about 9% in the last 6 months so opportunities might present themselves sooner than you think. The next assessment is in June, too soon in my estimate, but I do think September will present the most likely re-entry chance.
IMHO Don't be sat waiting to buy that late, your best prices are probably already gone but this is still very undervalue and a very possible medium term winner.
GLA.
The 3 month trend chart suggests this one has just started to turn.
Looks like a good entry point for those sitting on the sidelines and looking for a medium term punt. Entry at lower prices is still possible but you may miss the boat.
Those that have followed the ratio of worth vs price know this share is way undervalued currently and once it turns it will probably jump.
I have consistently bought and have solid belief that this share will motor.
GLA.
It's positive territory and many new thresholds to achieve before I even think of bailing here.
Good day.
GLA
Houses go up. Sometimes they dip a bit. Sometimes they stagnate for years. Then they double.
Again and again.
In the last 100 years, as a measure, on average they double every 7 years.
Sometimes it's 15 years, Sometimes it's 2 years.
IMHO, buy big, buy once, stay there till you retire then cash in your chips and move to something smaller.
All short term dips will be just that, short term.
Sometimes the markets defy logic.
All these voices calling out an incoming dip, do they really know? We all know predictions are just that, ideas about what might happen but quite frankly they don't know.
I think the fuel price hikes will mean some price increases but larger profits and a push in certain sectors to new technology at accelerated rates.
Capita stands to gain when government decides to reduce civil service headcount, which they have as the work gets shifted to private sector.
Every job shifted to the private sector, every agency nurse, agency teacher etc is one less pension we have to fund for 30 years after they retire, which is the true value in outsourcing. The savings to government are big further down the line with control of the future state funded pensions.
I always laugh when a good little up and coming share is heavily promoted by fake articles and someone thinks they made a killing by buying cheaply, promoting and getting out with a bump on the price.
I just imagine their faces when in a couple of years time they revisit the stock and realise if they had simply held onto the stock, they would now be holding a life changing amount of money.
Good company with great prospects doing a much needed medium term operation.
GLA
Just chucked a bit of ££ into this share.
I like the metrics, plus the potential is there.
GLA
The spikey nature of this SP means that for the active investors, there is a lot of money to be made.
I can't take advantage of these spikes yet, a bit to go before I reach my break even so I'm holding fast and waiting for things to push upwards a bit more.
The drops in the Capita SP look like the usual shenanigans so fully expect the recovery line to be affected by the usual profit takers. Doesn't mean somehow the recovery has lost traction so hold tight folks.
I fully expect the profit takers to sell a bit, hopefully it will serve up and stay positive by close.
If it stays positive, it will open up on Tuesday morning once the news and moves get noticed by the market over the weekend.
GLA
Well if investors were waiting for dividend indicators and debt reduction, they got it.
Two clear signs that the turnaround is near to completion.
Now the PI brigade and savvy funds will begin to believe.
Those of us in at the ground floor have smirks at last, I have bought then bought more and evened down, keeping the faith.
I have a fair way to go yet but see my way to my first exit point around the 43p mark.
GLA
I dont agree. The floor has been reached and this stock is being kicked around like a football on the bottom until some brave fund managers begin to hoover up all the cheap stock.
Capita shares are there for the taking now, they only need to rise tiny amounts to make big profits. We don't expect to see the heady heights of £12 from a few years ago but we do expect it to reach North of £1.
If you study at the university of Warren Buffett and Charlie Munger and take one overriding point from their experience.
Pick your stock absolutely with utmost caution. Trawl through every figure and every contract announcement and renewal.
Ask yourself if they have a unique position in the market and an edge and if the market conditions are going to favour stock of this kind in the longer term.
Does the price scream out at you as a close to bottom price for the stock so you would be entering at a low price.
Do they have the right management in place to take the stock forward.
I would argue that most of the markers against this formula are either positive or in a position where it is possible to turn them positive.
Capita is the king of outsourcing. The government and businesses are going to need to make huge savings due to current climate and this has a potential to land ever growing demands on the likes of Capita.
The price is at a low and the company are reporting markers that are turning positive after years of shedding the false revenue growth by simply buying companies.
Of course capita will have decreased revenue, the company has sold off some non core businesses and a few boxes of family silver but this has reduced debt and solved their pension problem, so the position is poised to change.
My one unknown which im undecided on is the management team. I believe they only took control and actually began to do things when their 3 year leeway was over and they realised they had to perform or were going to be out.
The thing is, when things turn, we all have seen this before, they can really take off so fast.
one dazzling set of figures and capita is back will be emblazened on eikon terminals across the globe.
I wont be bailing at 42p.
All imho but GLA.
Well I'm celebrating the fact that CAPITA are seeming to take on board some of the advice I've been dishing out. As a long term investor I have been mildly frustrated by the lack of updates which seemed to cause rapid downward crashes as the news was unexpected and any turnaround plan was not clear and seemed long and drawn out and with limited success. The top man has rearranged the deck chairs endlessly almost hoping some tinkering was going to fix things. Three years in and he has finally twigged that the company had grown too fast by just buying more companies and increasing revenues and bloating the share while not fully gaining economies of scale and diverted away from core business and winning formula while the debt pile increased. I think his first actions which were to try to simplify and integrate were not working so he has finally realised he should sell the bloatware and pay off the debts and those actions will in itself simplify operations and let them get back their winning formula. It is with credit that they seem to actually be selling some businesses for a lot more than they bought them for, so it's a positive on both fronts.
CAPITA will be left smaller but stronger and I do foresee dividends ahead due to their strong contract renewal performances and the built in increases within those contracts will ensure future gains to be made.
All IMHO, a mid term winner. GLA.
Well I have just made my final purchase on CPI, now I'm at the hold and wait stage while locked in on this price for the majority of my holding but have a batch that I paid a good deal more for but have evened those down to a more realistic target within broker ratings.
IMHO the share price is not reflected by worth and is severely undervalued as its in the tranch of the unloved, it will take good results and a return to dividends before the price is beyond the hands of the manipulators who drive this stock up and down on the basis of 250k trades after hours on a regular basis.
The European banks cannot be trusted to fairly assess UK recession chances when they blindly ignore the clear fact that the UK is NOT reliant on Russian gas and oil unlike Germany. They will be reopening their coal power electricity stations and abandon green targets and still their banks look in the other direction.
We are an easy target yet we have stuck to our green policy and taken the increases on the chin.
Trustmarque sale completes and 118 million in the bank to reduce debt. Perfect really.
At some point, it will get noticed and in the short term i think a number of funds will dip in and acquire a small stake, just in case this one flies - because one thing you can be certain about with CAPITA is that when the share price climbs, its unexpected, just like the falls. Big players have been in and out and pushed the price in their favour but without much connection to what is happening now. I personally think the doldrums are ending and we are about to see growth.
GLA
Thank you for that snippet of advice, I will apply it to my stock and see if I can actually turn out some cash as long term holding is just not paying here.