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@Lordy, et al,
I got myself in quite a tizzy after last weeks share price drop put my holding here at a 37% paper loss. So on Sunday i decided that researching the company just hasn't worked for me. So so many JL presentations that i simply couldn't get my head round. So i took the decision that if AH was going to be the real saviour of Capita i needed to know more about this new fella. The more i read about him, the more i liked him. Video's, news articles, interviews. My conclusion; he is NO JL. Cut from very differant cloth. He talks about empowering people, about people being more accountable, he is a teriffic communicator and motivator. Comes with track record to die for; Capita (& us shareholders) are very lucky he has chosen us in my view.
But this 'true' turnaround will take time...
Hi Trisor,
i got my debt figure from Adolfo's transcript
If you haven't read it i'll add it here for you & others
https://www.capita.com/sites/g/files/nginej291/files/2024-03/Capita_FY23_Results_Transcript-Final.pdf
George,
you might be interested in this interview with AH referancing his time at SDL
https://www.odgersinterim.com/uk/who-we-are/intelligence/transformation-and-a-pandemic-coming-out-on-top-4974/
Ineresting views, thanks both
Maybe also it depends on the individual company or sector; Tobacco companies always seem to have high levels of debt for whatever reason. Very cash generative so able to cover the interest payments. Same case for telecoms? In a low interest environment it's more acceptable to carry debt? May be there is a tax advantage. I hold some Meta stock. They have +/-$40bn in cash or cash equivalents. But still run with many billions of debt. Like you say, you could probably write a book on company debt.
If you ask 11 differant enonomists about this you might get 11 differant answers eh......lol
Maybe to compare a level of possible acceptable debt for CPI we could look at a similar company. Maybe Serco.
Interesting subject on a rainey day
Something I don't really understand. It's about this 'zero debt' that i've heard of. Now, is it a term spoken of on here or an aspiration the company itself wants to achieve? I guess no debt is a good thing, or is it? All the companies in my p/f have debt; VOD & BATS have mega debt, but they all carry some degree of debt. AH says in the presentation transcript Capita has £546m in debt. This is obviously too much for a market cap of £227m. But that's at 13p. If we can get back to 30p a share then the m/cap rises towards £540m. Then, a debt level of £100/£200m wouldn't seem out of the way. All assuming the company is making enough to cover the interest.
So, why do we need zero debt?
Sorry if the answer is obvious, maybe it's just me being a bit dim
Yes, thanks for sharing that NF; i go to TipRanks but unless you pay, you can't see the most up to date info.
Didn't someone say something about a Yellowstone update coming up soon?
June update from Capita is mid way on i think. So 3 months off. By then i recon Adolfo will have a better idea of things so more to say
NF,
Yes, to mask the fact they are building a position. I have long held the opinion that the whole process is rigged. Market Makers, Shorters and Media/Analysts all working together to manipulate the price of a companies share. When their process is complete to their satisfaction they then take their foot from the brake and apply the accelerator.
We, the private investors, are just skint little people compared.
I, for myself, simply sit at my PC at home and try to beat the cash ISA rate. If i can do that with my limited knowledge and data, i feel iv'e achieved something. Every now and again i get lucky and do well; as with Meta & Coin this last 18 months. The operative word being 'luck'.
I picked up AV & LGEN at multi year low's recently and intend to keep them long term for the dividend income. As i mentioned earlier i took a fer VOD & ITV, which hopefully will come good at some point.
Sorry to be off topic folks but not much been happening with CPI recently, such a drab boring share...
@NF,
I don't really understand how all this 'fits together'. I thought that L2 was needed to see the 'order book', so to speak. To see where the MM's are erm 'encouraging' the price to go. (ie; manipulation) The data on ADVFN are what 'has' happened. I suppose you can extrapolate from this a rough idea of direction. (ie; buy's v sell's) More buy's than sell's says the shares are more in demand. It's a very interesting process to try to understand. I have looked on occasion at YouTube video's to try and get my head round it all, to no avail.
Hi blank,
i don't think it is a case of selling more assets, i think JL has done all that & used the proceeds to prop up the balance sheet. To my mind it is now down to trimming fat/cutting out the dead wood. £160m worth over next 12/18 months.
Remember, the CEO controls the company. He can not, on a daily basis, control the share price of the company. But over time, if he does a good job, where the company goes the share price will follow.
I'm also in VOD & ITV; both going through a 'turnaround'. Both share prices depressed. But i see, with patience, these two, along with Capita, will come good. Fortunatly i get a divi with VOD & ITV, which eases the discomfort somewhat.
You nice God fearing pilgrims should get out your 'good book'. Open it to Job 1:21
"The Market giveth and the Market taketh away"
(I have actually altered a word to make it more appropreate for you all)
Since the 6th the market hath taken away, but am sure one day the market will giveth back.
So ends today's sermon......
E&oE
@Bubbles, "Helen Parris herself in her earlier e-mail response ADMITTED that Buyers could be put off until the June update from the CEO."
Do you have a link to this mate please, i must have missed it somehow
Much appreciated
@NF, "It's no point arguing with each other when we're all hoping to survive the same damming event as we stick together through thick and thin and hope to get out of the current sinkhole that Jon Lewis put all longs in."
Well said, give that man a cigar!
JL is gone. AH is here. Or....'the King is dead, long live the King'
NF, may i ask, do you have access to L2 data?
personally i don't give a fig about the staff. ah needs to do a zuckerberg and have a 'year of efficiency'. zuck got shot of 11,000 (dead wood). sorted the problem and then the share price 5 bagged. $100 to $500
we just need to have patience pilgrims. ****ging the fella off after 7 weeks is stupid.
this bloke is so good the richest man on the plannet gave him a job.
but some of you dicks think you know better.
patience!
“I am excited about the opportunity for Capita and can already see a range of areas where we can unlock value.”
“We need to deliver a rapid reduction in our cost base”
“We have strong foundations and the opportunity for significant growth in the medium and longer-term.”
From FY Results. But it takes more than 6/7 weeks. He's hit the ground running. Told you what he's going to do. Bought some shares. What more do you want from the poor s*d?
Totally disagree with nearly all of that Bubb mate, sorry
Yer letting frustration cloud judgement. AH can not do more. Certainly he can't move the SP in 6/7 weeks.
To me, manipulation started with 'suckers rally' and continues.
Turnarounds take 12/18 months minimum. AH has done it twice now. So well in fact Bezos hired him at AWS.
Get a grip man, get a grip!