Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
Tend to agree - the likes of St James Income fund investing in CPI just makes my decision not to use managed funds so much easier to make - the presence of so many funds who are not even close to their target market is sad to see but guess its loss in the roundings if your fund is measured in the billions
Saw somewhere recently Chat Bot (not AI) had saved 700 jobs cannot recall how many humans were employed but the savings are massive and Chat Bots are in use today - AI will in time take it further dealing with more complex cases into call centres but they need to be trained in your organisations' processes and practices you cannot just buy them in and turn them on - AI will do away with a lot of roles Chat GPT has already passed the bar exam in several US states - Low level law work is easy for them to deal with so lot less graduates required by legal firms, same with auditors, doctors not just low level clerical work hence why I am investing in the likes of NVDIA and MSOFT and staying away from this dead duck
Prefer short term govt bonds held until maturity for balancing my portfolio - pay very little on the tiny interest, capital gains free of tax, max'd out my annual allowance on interest so anything else is taxed and no way am I wasting ISA allowances on cash ISA over 5-10 years stock market thumps cash - I used to try to bottom feed, company called Monetise taught me some very painful lessons on averaging down/chasing losses I stick to growth stocks now much easier to follow the herd than try to stand in front of the stampede, I may miss out on some of the excitement from the likes of RR but I will take my 10-15% every year tax free and be satisfied, I get the odd one right like Nvdia which in your terms is a multi bagger and actually has a future!!
You would have made the same argument when it was dropping from 22p to 16p and still have been wrong
How can anyone in the right mind compare a risk free cash ISA with a punt on CPI for the next year - looking back a year investing £1000 would have returned £1050 but the same £1000 with CPI would have been reduced to £700 if I am being kind. If you want to make money year after year stick it in a Vanguard tracker fund and even then you would still not have a comparative to an investment in CPI which I would suggest is more akin to putting a bet on the horses at odds of 10-1
I am amazed at the people who continue to plough in more money on a loss making bet in the expectation that somehow they will average down to something profitable, its called chasing losses and its a mugs game - glad I bailed at 16p and took my pain IF this looks like it going back up to 20p at any point after the market capital day they it may be worth a punt on the basis it might get back to 30p in the next 12 months but whilst it finding new lows I have chosen to look elsewhere to make back my losses you dont have to hold all the way down and all the way back up - there is no loyalty bonus
The point being made was staff (including the key players are lookng to leave, always a risk that you lose the good people who have more marketable skills when you want to cut the underperformers. Slavery has been outlawed for a while now and people are free to depart the sinking ship and retaining them normally costs more when you are looking to save Unless he gets efficiency into the processes lower headcount in the short term just means those left have more to do - AI is also a threat to employees as much as it is a benefit to Capita. Restructuring this business is not a given as some seem to assume
People have been saying this since it dropped below 20p when in what was my penultimate loss on this crazy share - bought in again because i thought the bottom had been reached and bailed out when i lost money again - put in on Nvdia and made a killing albeit it was in USD not good old GBP - chasing this share to the bottom has been expensive and I have no patience to wait around for the bounce of all bounces - may consider buying in again if there are signs of a real recovery but so many false dawns for a company I used to work for
£160m of savings for £70-£90m in costs - pity no one told JL that is was that easy. My experience of right sizing businesses is savings always happen later than promised and always cost more - lets hope the new guy as some experience of mass redundancies and managing the fall out - RR have let loads of people go over the years and ended up recruiting them back as consultants when the fan was struck by the brown stuff
Great they are confident of not burning more than £300m in free cash outflow this year whilst they sort out the redundancies - some of those employees have final salary schemes from when they TUPE over as part of many deals and decades of service - not cheap to move on.
Revenue is not the same as profit and profit is not the same as cash - you can buy contracts by offering slim margins and CPI and others are well known for doing so and then trying to make the return via change control
I speak with some experience of covenants and it will be more akin to Interest cover vs EBITDA, Debt service to Free Cash flow etc to measure the ability to service the debts in place. The bank dont want shares even at these prices but the cure for any covenant breaches is usually to inject more cash to lower the debt and the discount on any rights issue is going to be astonishing after the last rights issue and the total waste of money - of course they could always sell some assets (woops they did that already) - hopefully the banks are supportive of new management and can see a means of getting paid at probably great expense in the interim to CPI.
At this rate FCF generated will be worth the same as the underlying business 😊
CPI dividend policy from memory of a long time ago was progressive for years but that was a very different business - maybe they will just pay down some of the expensive debt and be sensible about things
You assume they are in the know - the reverse of this is if they are in the know and havent bought in yet despite the 22% drop today maybe they know how bad it is going to be - used to work for CPI in the profitable software division which regularly made £500m a year in profit only to see the Group and the call centre businesses lose £200m - they sold the good stuff because it had a market value and is now left with the Metoo offering that can always be done cheaper
If he followed this board he would have got another job
At least this will protect anyone with 30k CPI shares in the future from CGT and any tax on the dividends on those shares😊
Maybe its there is no buyers left at this level, everyone waiting for it go lower and lower - long time till June and any bounce back - at least RR has a $10bn order book, world leading tech which is hard to replicate and a proven business model - comparing capita to RR is a bit silly - definitely more Thomas Cook
There are other investment opportunities - you dont have to suffer three years+ of losses and its ok to recognise you made a mistake, made a loss and go and recover it from somewhere else. Pick any stock market tracker and there is a high probability over 3 years you might actually make a return - hoping for some multi bagger over the next two years looks like buying lottery tickets given this company's track record.
CEO is excited to the tune of £53k of shares this morning - ringing endorsement or bare minimum?
If it slides much lower someone will make a bid and do the cost cutting job properly - just dont think the premium will be worth the wait - govt elections this year, local govt are broke and cutting costs everywhere other than what is absolutely required by law AI impact on call centres is great but customers/prospects will want a share of the savings - oh well onwards and upwards
Now 16.5 on ii
just bought japan tracker with proceeds of this morning's sale - US with Trump vs, Biden already has too much of my portfolio riding on it - anyone else looking elsewhere (ourside UK)?