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My predictions have come true, so far!
We made it through the 50p, today is a milestone. As predicted it falls back by profit taking, well done those who made a few quid, but good luck to those who are hanging in there (like me) and still adding to their portfolio and awaiting a more realistic value.
FTSE is dropping quickly today yet Capita is holding relatively steady. I think if the FTSE was flying we would be through the 50p on a sustained basis, fully expect it to be next week before we make that though due to general market volatility and the usual friday profit takers. Capita might just buck the trend though, the rises these last few weeks are sure to be noticed and everyone loves to buy shares that are less than a quid because you can buy very big numbers and small rises equate to large % profits.
Lets touch 50p today please. Lets get the auto sell bots to be history.
Will this crash through 50p or will it require another charge and perhaps another.
51p my bottom marker for Capita, so im hoping it pushes on to 72p, my mid point by xmas.
Who knows though, this share defies logic at times, so it may stall or it may fly.
GLA
SP holding up well and small gains are good news.
In the past this share has been spikey, due to bad news and lack of communication on the turnaround plan and now we see the markers turning green, the SP looks more under control as investors consider their positions and the PIs are bailing in and out making a fast few quid.
The 50p marker will probably invoke a lot of automated sell positions, though it seems to me that 48p was the new 50p and a lot will have already gone. Cant fault anyone for taking profits, thats why we are all mostly here but I do feel they will have missed out on the better opportunity to make considerable gains as this SP is IMO cheap and you buy low...
Momentum pushing cpi upwards, 48p being achieved, onwards to the magical 50p and beyond.
My experience tells me this one will push and push to break through 50p and when it does, there is sometimes a bit of a deluge and it can rapidly rise through the low 50s and into mid to high 50s in a tight period of trading.
Perhaps this unloved share will finally become the darling and once again become boring with its regular growth upwards.
I think we need dividends before the masses will plunge in and I'm continuing to invest until it reaches 72p and then I will hold and take a mid term view.
This share has good potential.
71p is my break even price, so a bit to go for me.
I am watching and waiting and wont be cashing out any time soon, this is a long term position.
After years of bad news followed by even worse news, along with a SP that seemed to be made of lead, I feel like this is a true turning point. I have continued to add low, figuring there is good money to be made.
What makes an unloved share the darling of everyones portfolio? A rising share price, the prospect of regular dividends, low and managed debt levels and good revenue streams bedded in and ahead of them.
With the government facing tricky times ahead on public finances, I expect outsourcing to increase and see Capita as a front runner to continue to sweep up additional work and add to its contract base.
I am in this for the long game and have been hoovering up and consolidating my position but see the evidence of a shift here. I dont think they will be very cheap for very long, once the 50p marker is finally defeated by sheer volume.
This is significant, it shows ambition from the CFO and a level of confidence where they are willing to put their money where their mouth is.
I do believe this is make or break time for the CEO, Lewis has had his 3 years and it is time to deliver - and he knows it. The market is fickle with capitas share price, a few big players got burned and a lot of fund managers saw depreciating prices over a long period and gave up on them.
This doesnt mean the company is bad, it means that before managers dip their toe, they need to see solid evidence that Capita are rising again, more nimble and more focused. If this doesnt happen in the next 3 months, I think Lewis will be out and Capita will find a new turnaround specialist but this time one with the metal to chop off the bad bits and not sell the good bits to prop it up.
Cashola, I do think you have hit the nail on the head with this one. I have run the numbers and the share price does not stack up. It appears very undervalued, which leads me to the conclusion that this share is unloved by the market. Some big players must have got burned by this company and are staying clear of taking up positions. They are probably waiting for green shoots.
The trouble with green shoots is that when they appear, the price will have leapt up, leading them to conclude that was a green shoot they missed.
Capita can either trust to luck that their share price will improve by forces beyond their control or they can make a decision to start talking to the market, full frank and honestly, explain their progress, explain their issues, explain their debt plans, explain their cost control measures. Then talk about progress on these things.
The lack of clear communication is leading to spikes and a wandering share price where it is fueled by rumors not facts.
Lewis needs to post more updates and be honest about what is not working and what he is doing about it.