Member Info for GoCPI

Volume has jumped massively to 13m shares traded too!!!

Lol..I wrote my 1st and 3rd largest holdings (value wise) are up more than 10% today and only CPI wasn't keeping up. And that insult was more than enough to jolt this into action..

ROFL - Crikey, I'd never think that I'm that remotely that influential. Good to see a 10% jump though!!!

Lol..Kipper9. Let's bring SK into the Macro conversation...

How's that Macro looking, SK?

Stupmy decided not to buy ;-) and the market participants were reading SImpiles posts about XW and AH.. Lol. As good as explanation as any I suppose for this sudden jump.

"Adolfo prefers to deliver first and discuss afterwards Jon was the opposite to this. Jon was a bean counter Adolfo is the technology route master.

We are starting to see a stronger board with real talent!

This should have taken place last year! But better late than never!"

Thanks a lot, Simpiles. These comments from you says it all - appreciate your honest views as CPI employee. Whilst I believe in AH/XW and their soon to be seen positive impact on CPI's cash flow, I think the market just wants to see at least one set of hard facts. Whilst the June update isn't that hard set of facts, that along with the August H1 release should show the market that AH and his team have set CPI on a different trajectory.

If that view was in the SP, it won't be at under 14p as it is now, we would be in the 20s. I'm willing to stick my neck out and say its a bargain, and will look to add if it hangs around these levels for longer.

Sorry..not the second email, but the second post.. ;-)

@Simpiles - I'm not sure who the second email about XW (Xenia) was directed to, but I've long been positive about her given she has a track record and has worked with Adolfo previously as his CFO. I'm sure she's properly looking under the hood at CPI and is going about identifying where more savings could be realised and where any additional £s could flow to from an investment viewpoint.

Good to know your take on cost cuts starting in June. I suppose my point is that the swing lower in the business from the FY 2022 results to the H1 2023 was very noticeable when you look at the earnings report in August 23, and the writing should've been on the wall well before.

I'm pretty optimistic with my take on CPI's trajectory under AH/XW, and unlike the traders on here, I take a medium to long term view with my stock picks/holdings. CPI is still my biggest holding after SFOR and I'm quietly confident that it'll come through soon enough.

My first and third biggest holdings (SFOR and Neo Performance Materials listed on TSX, Canada) are having very good days today - CPI's day will come soon too, IMO.

GL..

"Jeeezzzz, i hate the man after falling for his 'turnaround' c*ap" - I gave up as soon on JL as soon as I saw the dire August update, just when you though the March 2023 had a few positives going for it. The August update showed up that the Asset sales hadn't actually achieved what they had to - sustainable cash flow, as the cash costs in the business were still too high. He 'embarked' on a £60m cost cut, which wasn't enough as pointed out by AH in the March 24 report when he said the turnaround wasn't complete and more costs had to be cut. That's at least being honest and I suppose AH had the advantage of a clean slate as he started.

Good riddance to JL. From a strategy update viewpoint, it won't be much of a strategy update if AH doesn't lay down what savings he'll generate for CPI as he embarks on the additional cuts, and what additional costs/investments may be needed to support this new strategy. All of these need to come together and not general waffle about business strategy - I'm sure he'll be mindful that it's exactly this waffle from JL that got the SP down to where it is now.

Cheers, Yorek. I know you do and all the best there for you. I have a very small holding in THG and don't intend to post negative posts on that board and hence stopped posting there. I've noted that the THG message board has become a mad house of late. :-)

However, In the past few weeks I have switched out of most of my THG holdings ( at a small loss) into SFOR and CPI. I hope THG works out for you!!

@Yorek - I know this is OT for the SFOR message board, but since I know you're invested in THG - if only mad Moulding can do half a good job as MS, THG's SP won't be where it is now.

Onwards and upwards, SFOR.

It's that old market saying - the market looks forward not backwards. And it's not noting a deterioration in business or margins, and more cost cuts to boot. When the inevitable upswing in revenues comes around, the current forecast margins should be in the laughable territory. I think this is what the market is currently digesting.

I'm not saying this will be on a one-way street higher, but it certainly shouldn't at these levels for too long. UK looking likely to cut rates along with ECB next month and the US will probably follow in August. The market will front-run this and IMO, that's what it is slowly reflecting in the SP.

Outsized returns come to those who are patient, not the traders, or investors with a trader mentality!!! IMO.

April CPI data to be release on May 22nd should see headline inflation drop a lot with forecasters calling for a below a 2 handle print, and we may see a rate cut in June - should tag team nicely with our June update. Happiness accrues to patient investors - certainly true for CPI holders, IMO.

MildTiger is a well known commodity. Of course, chest thumping when a trade works out and sulk away quietly if it doesn't. I don't care a bit what he writes, but he isn't a macro orientated fundamental investor - it's just pointless noise from my viewpoint and best to ignore.

Crikey SK, I'm not going to mock you, but UK Q1 GDP will beat US Q1 GDP growth rate, albeit coming off a recession it isn't unexpected really. Rate cuts incoming in the UK prior to the Fed will support the economy and CPI, and next month's update will be an eye-opener to the market, IMO. AH and XW know that the stakes are high and will want to put out a clear update with minimum obfuscation, IMO.

Macro supporting and company specific news incoming = great H2 for CPI, all IMO. Added more in my SIPP today - selling THG.

I meant that the current 6x valuation based on projected 2025 earnings may well be way off the mark if the macro turns. More like 3x multiple and could get us a 3x in 2025. ;-) Olympics and the US elections beckon!!!

Tempoarary trading freeze as the price jumped!!!

I didn't buy heavily - nibbled some at 43.65. A drawdown at the open, but we'll see how it trend during the day.

Medium term, the business trajectory is positive as the macro improves for agencies and the sellside's 6x vluation based on 2025 earnings projection may well be off the mark if (when) the macro turns even a bit.

Margins will get better as the year progresses, on a lower cost base. I'd certainly think that Q1 is the low point for net revenues and will start to trend upwards as the year progresses. Better H2 comparables beckon and the market looks forward and not backwards. With an improving rate outlook, even in the US, I'm quietly confident that revenues/EBITDA margins will rebound as we progress throuhg the year.

I'm a buyer if there are washdowns!!

A bit of head count reduction as well at 7598 employees now (down 110 from end of December). Content margins are trending better than last year and for now, they're still calling for EBITDA levels to be same as LFY, and that points to a sequential increase in EBITDA margin %. Tech consulting is still challenged and I won't be surprised if the cost (employee) cuts are mostly focused in that practice. GBP was a bit stronger vs USD over Q1 2023 and that was cited as a reason for lower revenues, maybe a 3 to 4% impact? A bit weak on the revenue front, but the EBITDA margins are not being knocked down and there's nothing shocking in the Q1 annoucement. Maybe open lower and close flat to slightly higher is my best take?

On balance, they're OK. £430m billings in Q1, Content sequentially showing signs of improvements, and debt to start dropping after this quarter. Some very early green shoot signs perhaps!!

Didn't warrant a 25% drop, IMO, in the past 3 to 4 weeks.