Member Info for JKG53

On the rise now, I thought the briefing they gave today was very positive. Emma came across very well, she certainly seems to know her business well. In the current volatile market, I see GSK as a relatively safe haven, 5% dividend and a SP rising to 1400+ will do nicely.

I suspect a few of the plonkers will be gone soon. Basically I don't see much point buying back in for the long term, no dividend and not much prospect of a quick rise to recent levels. Could be good for day trading.

The CEO's conference call recording (see RNS) is worth a listen if you are a LTH. Sounds like it will take a few years and Capita will emerge as a smaller and very different company. I think they realise the outsourcing market has changed and they need to reinvent themselves and improve their delivery. With no dividend and probably reduced profits for a year a two, I'm thinking that the share price could remain depressed for quite a few months?

I think he should have spread out the news to lessen impact on SP

Does he know what he is doing, or is he throwing out the kitchen sink and dropping the SP to make himself look good as the SP recovers. Do they need £700m share issue when they are making £300m profit and suspending the dividend? All seems very drastic.

Well they didnt get their bonus last year apparently

Ok Ive lost about £2k today but my consolation is the **** of a director I used to work for has probably lost a lot more. Awful company.

In my experience these large outsourcing contacts are not awarded to the lowest bidder. They are awarded on a combination of Quality and Price. The problem is Capita and others became very good at writing Quality Submissions which scored very highly and helped to win the contracts. However, Capita' s operations never match the quality in the bid, which results in poor service delivery, poor financial performance and unhappy Client's. The company culture is awful.

Tough medicine being taken but is probably needed. Could take a long time to recover. Hopefully medicine won't kill the patient.

Investing.com says 2.8m volume

Yes same as mine! LSE and II

I agree with your sentiments, all of the bad news and a bit more must be in the price already. The drop in the SP is an overreaction IMO . I was tempted to buy more today but resisted. My average is 387p

Ignore my comment about volume, LSE figures aren't correct

Volume of buys slightly greater than sells. People can spot a bargain.

I think much will hinge on the 1 March statement, both details of financial performance and transformation proposals.

Yes I think there are concerns about the future if the outsourcing market. In my opinion, the public sector has lost the ability to deliver services in house, despite Corbyn's desire to nnationalise everything.

Perhaps the shorters are playing their games

SP has reduced by almost half since July. Seems to be absence of any good news rather than bad news causing the drop. Must recover soon.

A famous book my Ernest Hemingway., which I read for my O Level English Literature many years ago. Tells the story of an old fisherman in a small boat who hooks a giant Marlin. The boat is pulled out to sea by the giant fish, and he drifts aimlessly for days. Just like this share.

2017 trading results will be published. I think SP will climb above 400p if results are in line with expectations, and much higher if there is positive news from the new management about bid pipeline and market conditions.