RE: Third new contract today6 Jul 2021 17:09
I personally think outsourcing will go from strength to strength, given global changes.
However the fact remains CPI has had a habit of performing badly in major contacts, poor track record of buying lots of companies in addition to terrible poor management. While they are a top UK outsourcing firm. I feel they will become profitable sometime in future. More of accident given growing market opposed to being able to compete with global competitors. Long painful process of selling assets to strengthen a balance sheet is never the best way but only way to play out from the back.
Can always hope for a takeover.
Certainly not at these levels a buy. High risk holding long term, where I could turn that money over quicker for higher reward elsewhere with a quantifiable longstop date. Can make an allocation to buy at a justified fair value (minus)15-20% from here. Which could happen in the next 4 weeks. Then will hold for 12-24 months.