Mixed Bag of comments here the last few days12 Jan 2021 00:00
Interesting comments from several holders that just dont see CPI as being undervalued, dont believe in the exec team and rightly question the debt and covid factor on 2020
Others are still very positive (some less than they have been recently) but still positive
Few points to consider though
1. New CFO is a transaction specialist (M&A) - not turnaround
2. Debt is big but debt is cheap
3. ESS was probably £100M less than most expected/hoped but £700M being banded about was a pipedream
4. Schroders loading up at 38p (they will have known approx proceeds of ESS and debt)
I am holding big here (now £115) yes Im mad I didn't take a big chunk at 50p but didnt see the retrace to here.
As Ive said before, I think 2020 has been a good year for Capita - they will have furloughed support staff, been paid guaranteed contract income on many contracts and not faced the same costs to service etc
I know CVC confirmed they were not looking at Capita, but the way its so unloved, I still see a PE deal waiting to happen
No Director dealings throughout all these lows? I dont think that's them not believing, I think there is deal going on.
Keeping the SP at 40p, allows an offer of circa 70p and a decent bonus for the execs - maybe PE or maybe another listed company - Govt spend is going to be huge for the next few years and CPI is a favourite to administer a big chunk.
Months ago, I thought it maybe Serco, but their share buy back has put paid to that thought - but something isnt right - and Schroders didnt come in at 38p for a deal at 45p
GLA
PS - DMTR, take a look (also ITX has gone up big in last couple of weeks but 21st Jan it could double)
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