RE: Schroders BUYing27 Sep 2023 05:16
1) Schroders selling then buying again is huge! First why would they sell, because they lost money or didn't see a future in Capita?
Now they buy shares again, did they see Capita being profitable + having good revenues in 2024-2025, or saw the big contract wins and thought buying time?
Did they want to buy lower so they can make more money or recoup losses? Who knows! But buying again now is a huge statement from them.
2) The contract wins was huge for Capita future which has been uncertain for a long while now. For example DWP student loans + disability + Universal credit is a big sector.
The fact Capita will work these large sectors is important, as they will always be needed by the public and will always run. Therefore Capita should make loads of money and save further cash in the bank.
3) Capita now trading at 17p with a very low chance to back to 16p or less. A Very high chance to go back to 20p-30p short term where its been trading mostly for the past 1 year. Then 30p-50p long term 2024-2025. Late 2024-2025 with high revenues, reduced debt and possible dividends re-instated as stated in RNS a few years time by the company. Then I could this hit Β£1 again where it was trading before the pandemic, which would be amazing for all shareholders who got in this low at 17p or 20p-40p.
Its taken nearly 5 years for Capita to get to this point of winning big contracts and trying to reduce debt while suffering all this time, but now the future looks bright!
I will keep adding monthly with my Β£1000 starter so far, then see where this goes! First step is to end 2023 with positivity, then I will make a decision stay in or out.
In my view Strong Buy! Add as much shares as you can risk e.g Β£1000-Β£5000 i believe is a good risk-reward amount. Buy, Hold or Sell, up to you!