Member Info for GoCPI

Circa 50k in the bag this morning - some above 23 and some below. Now we wait till Tuesday !!!

Couldn't they have waited till Monday?

"Over the year I've managed to reduce my average from 32 down to 25.5, through buying and selling." Nicely done, JG68. That's a good way to make money until there's a clear breakout. I'm convinced a breakout is near and that 'hope' at this time, is predicated on CPI becoming a sustained cash flow business. People here keep banging about lost revenue as a result of businesses sold, however, that means zilch if that revenue doesn't result in profits and positive cash flow. We'll know how CPI is trending towards that end goal when they announce next week - I'm not suggesting that next week will bring about miracles, but progress towards the end goal is certainly needed and most welcome.

I'm convinced this is a deeply undervalued play given where cash flow could head to. and the dividends that could accrue in the near future. Good luck to all, however you play this - trade or LT investment.

Doesn't bode well? I'd imagine there are lots of PIs selling out and it could be a possible indicator of missed earnings next week - news leaks are dime a dozen. Equally, it could just be that Nervous Nellies are selling and that's OK.

Not long to wait - I'll do a final topup tomorrow and keep everything crossed for Tuesday. :-)

The update is next Tuesday.

Actual interest bearing debt as of 30/11 would be circa £295 million - that's pre-IFRS 16 gross debt. The numbers quoted by Fatsam are post IFRS and include lease liabilities, not something that I'd really count as debt, even though all companies are obliged to report it. I'd suspect NET pre-IFRS 16 debt would be between £0 and £100 million as of 31/12/2022.

PedroBullS - "CPI will NEVER pay a dividend ever gain IMHO.
They have a shed load of debt to repay and constant re-orgs and re-positioning to stay alive."

IMO, these are purely opinions without merit, from someone with a large 20-share short position. Whilst we acknowledge that Debt repayment is a key factor in getting rid of these non-core companies, another key factor that you conveniently miss out is the need to focus on a core, and sustainable BPO and Digital Transformation business. If this change can be pulled off successfully, and that's still a work in progress at this time - agreed, then this will be a better margin and solid FCF generating business. That's all that's needed to deliver sustainable dividends in the future.

Let's see the progress made in H2 2022 when they update next week.

Cheers, Brass. It's more the revenue and profitability that I'd concern myself with, not debt, but all wins are good news.

The key is to show to the market that the remaining businesses can generate positive free cashflow gping forwards. Having a large revenue base without much profits OR cashflow to show for it wasn't going to cut it. This is why JL embarked on this turnaround strategy, but he needs to pull this off.

I'll maybe give him another half year, if the upcoming update is deemed tepid by the market and we're marked down. Debt is down a lot and the next focus MUST be on dividends!!! We'll see won't we?

"let’s hope we don’t get the same reaction as we did to last Decembers update." - fair shout. I'd suggest that last year we had Capita stating in the December update that net debt would be mostly flat at H1 levels, and even though that was telegraphed so clearly by the company in the H1 results release in August 2021 that this would be the case. This time around though CPI has already said that Net debt levels would be better by the end of the year, vis-a-vis H1 2022.

What is also key though is to show that gross margins can be sustained/grown even, after accounting for the recent disposals. if CPI can show this, then the market gets the green flag that cash flow can be sustained and dividends are firmly back in the agenda for 2023/24 - else it's a few more months of feet dragging. Fingers crossed for next week.

"My large short position here is making money" - 5 shares short and with 2p profit each, yes you can buy 2 sheets of loo roll with the large profit you've made?

"When is the next update due?" - Next Tuesday

I've bought some today - that's as much as I can say. :-)

CPI coming back from 25p along with the pound had to do with Dow futures dropping this early afternoon on a hot US NFP print at 1:30 PM. It gave me a chance to add more at 24.20 and 24.30 levels at that time. My average is circa 26p and if the market gives us opportunities to buy in 23p/24p range, I will. If it goes down some more, happy days to add some more. Companies generating free cash flow are/will be in demand. I know CPI has been fits and starts in 2021/22 and has been a disappointing share, but the green shoots in 2022 should provide high sustaining cash flows from 2023 onwards - and that's great for dividends/buybacks..

I'm now counting just shy of a million shares in CPI across ISA, SIPP and corporate trading accounts. Keep the faith - we'll all be suitably rewarded, even with a recession staring us in the face.

US Payrolls are having an impact on the overall market with rates up and stocks down. Bought some more just now as the price dropped.

@Culley01 - agree with what you've said. There's a good chance that we may see this happen in 2023, maybe with the h1 results? I just hope that the underlying business trends in the experience/public sectors are holding up nicely - they should though :-)

Sharehead - I was hopeful this would come through in 2023. SM seemed to indicate it was a 2024 story, but I can't too many reasons why it can't be 2023.. Let 2023 roll in.

Or do you mean plasterer's 6% short that he/she opened up a couple of days ago? That won't show up in the records yet, maybe never - they're a string-puller at the FCA, heh?

Not all hedge funds like to make money, do they? Come on 13/12...