Member Info for giantsquid

With my gains building nicely by the day, I treated myself to a celebratory blueberry muffin in Costa this morning - nothing like the smell of fresh coffee and stock market riches in the morning! ??

50p could go today or tomorrow imo the 5d chart looks very strong and we all know this should be north of 60p, fair value is closer to 80p - this rise has a long way to go yet but it's looking good

LSE : "There are currently no open short positions in Capita"
https://www.lse.co.uk/ShareShortPositions.asp?shareprice=CPI&share=Capita

Short-tracker :
Disclosed positions in CAPITA PLC (CPI)
Notice: We no longer track disclosures after they drop below 0.5%. It is possible that the manager still holds a short position even if we are showing it as zero.
https://shorttracker.co.uk/company/GB00B23K0M20/

As stated in "Simply wall street" this stock has been "stable" for the last year seeing swings of +/-6%

So I'm not sure where you're getting g your figures from.

The other thing is the recent update has derisked this stock considerably. That means wild swings unlikely. Occasional retraces can't be ruled out but the kind of volatility you're suggesting is unlikely to be seen going forwards.

Good luck trying to buy in lower though!

Typo

DOW +0.34%

FTSE 100 +0.33%
FTSE 350 +0.35%
DOW +34%

Looking at the 5d chart, now seems a great time to top up or buy in before the next leg up. This is one of the few FTSE 350 stocks left that is still down over 70% from where it was before covid struck (CPI was over £1.50 January 2020). Huge upside potential long term, short term easy 50% to 100% upside from current price. Great recent update which has significantly derisked the stock. Barclays target price 80p, simply wall street has fair value @ 84p refers to CPI as trading "significantly below fair value". We've hit 50p a number of times since the pandemic hit, so considering the recent update we should see 50p topped at some point in the very near future.

Looking at the 5d chart, now looks a good time to top up or buy in before the next leg up

Capita - currently top of the risers

https://shareprices.com/risers/ftse350

It's very undervalued, should be in the 60p to 80p range.

What I find interesting is the ownership breakdown. A huge % of the company is owned by big institutions, which is a good thing. But also what the following breakdown shows is the free float must be absolutely tiny. You really wouldn't want to be a shorter here.

Ownership Breakdown :
Individual insiders : 1,094,791 shares (0.07%)
Private companies : 1,194,923 shares (0.07%)
Public companies : 2,227,553 shares (0.1%)
General public : 26,735,578 shares (1.6%)
Employee share scheme : 33,299,042 shares (2.0%)
Institutions : 1,599,258,238 shares (96.1%)

Following taken from Simply Wall Street - updated 07/08/21 :

Share price Vs Fair value :
Current price = £0.40
Fair value = £0.84
= CPI is trading significantly below fair value (52.2% below FV)

* Earnings forecast to grow 30.81% per year
* Earnings have grown 14.2% per year over the past 5 years
* Stable share price : CPI is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 6% a week
* CPI's weekly volatility (6%) has been stable over the past year
* Stable cash runway : CPI has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level
* Future ROE : CPI's return on equity is forecast to be very high in 3 year's time (454.4%)
* Insider buying : CPI insiders have bought more shares than they have sold in the past 3 months

Ownership Breakdown :
Individual insiders : 1,094,791 shares (0.07%)
Private companies : 1,194,923 shares (0.07%)
Public companies : 2,227,553 shares (0.1%)
General public : 26,735,578 shares (1.6%)
Employee share scheme : 33,299,042 shares (2.0%)
Institutions : 1,599,258,238 shares (96.1%)

Capita upgraded by Barclays after Axelos disposal

"if management can deliver, the upside is considerable, argues the bank"

The price target is unchanged at 80p, but that is more than double the current share price and the outsourcer is now rated as 'overweight' again by the bank (if an analyst rates a stock as “overweight,” they think that the stock will perform well in the future. They believe it is worth buying, as it could outperform the broader market and other stocks in its sector)

Capita - today's top riser

https://shareprices.com/risers/ftse350

This stock has now been significantly de-risked so we'll soon be seeing highs that will eclipse any seen over the last 18 months. We'll be North of 60p very soon imo.

Looking at the 5d chart, looks like we could see the next leg up into the low to mid 40s before close?

My guess is we'll see very strong upward movement for a good few days, quickly hitting 50p+ before plateauing somewhere around the 60p to 70p mark. After that we'll probably see a more gradual uptrend thereafter towards £1+ (just my opinion tho!)

Personally I'm not bothering with top slicing. Sometimes it pays off, sometimes it doesn't and you just end up having to reinvest at a higher price. Plus you've got dealing fees to factor in each time and it all adds up and eats into your overall gains. My tactic is just to buy in low and leave it to run and if I get any spare funds, add on any short term dips.

Serco share price 7th Feb 2020 (just prior to covid) was £1.63 which means today's share price of £1.40 is down just 14% from pre covid levels - not much to get exited about.

Capita share price 7th Feb 2020 (just prior to covid) was just over £1.49 which means today's share price of 38p is down 75% on pre covid levels - so far more potential upside than Serco

I'm holding £10k worth @ £0.3711 average
I think this could hit £1+ relatively quickly because it seems the majority of the doom, gloom and risk is behind the company now, so the recovery can really get under way. And there aren't that many stocks left where the SP is still on the floor, most have already made at least a partial recovery - whereas this has barely started so maximum upside still to go. And let's not forget this was over £1.50 just before covid struck. I missed Marston's at 30p I know that's a different situation and a different sector, but that rocketed above £1 very quickly so I'm determined not to miss this opportunity as well! GLA

Texas called an end to the pandemic some time ago. No requirement to wear masks or socially distance, no going back to lockdown again - ever. Compare their steely, no nonsense determination to get back to normality with our own flip flopping, weak and indecisive leadership and its not difficult to see why we're not seeing the kind of recovery we should or could be seeing. Reporter recently : "will there be more lockdowns later this year prime minister"? Johnson responded by saying he won't rule it out. This despite him calling it an "irreversible roadmap out of lockdown" sorry but this government is appalling.