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And shorts have been reducing
All in all it’s in good shape
Market sentiment might move this down short term and there will be a few bumps
But it’s only going one way
The bad news ( Debt ) is all priced in and any good news , new contracts are going to have a positive result on the share price in my opinion
So we have lots to look forward to
I’ve seen enough upside potential now
Need to free up some funds to load up
I’m getting too excited about this stock
Covid is priced in - Remember that
Any upside now could be spectacular
Brexit no deal also won’t impact this long term as infrastructure upgrades and new contracts will be dished out either way and capita and serco are at the front of the queries
Good luck and please do your own research before putting cold hard cash down ;)
Even the fools at Motley fool commented from August update :
Net debt stood at £1,096.6m, and that’s actually down from a 31 December figure of £1,353.2m. The company says it has liquidity of £704.1m, which includes £117.3m benefit from a VAT deferral scheme. The firm is undergoing some simplification and restructuring, with disposal proceeds going towards strengthening the balance sheet.
Though Capita reported a pre-tax loss of £28.5m, it put its adjusted figure at a profit of £30.1m. That’s way below 2019’s £117.8m, but it’s positive, and I see that as crucial. Adjusted cash from trading operations was put at £193.3m.
Capita share price potential
I reckon I’m seeing a company valued based on short-term fears and a year of earnings that are all but wiped out. But I think that misses the long-term recovery potential here. I really think the Capita share price could be significantly higher in a few years’ time.
Right now, I’m still held back by my first rule of recovery investing. That’s to hold off until I see convincing signs of recovery really happening in a company’s fundamental performance. Perhaps that’s being unnecessarily cautious. But I’ll be watching Capita closely for such signs.
This makes me pretty confident of 12-24 month view
Definite multi bagger
Excerpt from today’s announcement : Don’t think they are going to rush to engineer a takeover when there is so much upside to be had !
Please do your own research - but I’m a believer and holder
As previously announced, the process to sell ESS followed a strategic review of the Software division, after which we decided to focus on a portfolio of core capabilities better aligned with and which support our consulting, transformation and digital BPO services, and the vertical markets of the rest of Capita.
We will retain software assets that are catalysts for growing our other services, but plan to dispose of standalone software products that have little overlap or cross-sell with the rest of Capita, such as ESS.
Further disposals of other standalone businesses across Capita will be announced in due course as we continue to simplify and strengthen the business.
Jon Lewis, Capita’s Chief Executive Officer, said: “We are pleased to have agreed the sale of ESS to Montagu Private Equity after a comprehensive auction process.
“ESS is a business that Capita originally bought for £10m so we have created significant value over 25 years of ownership.
“We announced our intention to sell ESS earlier this year, as part of our strategy to simplify and strengthen Capita.
“The sale will help us simplify by disposing of a standalone business, while the proceeds will help strengthen Capita’s balance sheet, as we build towards a more focused, sustainable business for the long term.
If you have time on your side
You are going to be a higher
If a takeover is a possibility , the Capita management are priming the company for a substantial bid or follow their own growth strategy , reduce debt and increase shareholder value
Either way the price seems a steal at these kind of levels
I wish I had jumped at in the 20s but I was making a killing trading Cine at the time
But Capita , Galliford Try and Costain are my holdings now
Sold my Rolls Royce position to load up on Capita
Good luck all
I see this as the most positive and continue to view this as a good medium term bet
This is from August reporter Half year
It’s great cause for optimism
https://www.capita.com/news/capita-plc-half-year-results-2020
For your information regarding Capita for some perspective
Obviously I am fully invested so my opinion is only my opinion - I remain a bull
Please take a look at these from Earlier in the year - PRE COVID : share price significantly higher that current :
Obviously a lot of businesses have suffered this year but some have disproportionately been hammered - the fundamentals remain quite positive
More new contracts , renewed contracts and more to come , sale of businesses and more disposals to come
THESE ARE FROM FEBRUARY 2020 and only FYI - please do your own research and good luck !
Broker Forecast - UBS issues a broker note on Capita Group (The) PLC
UBS today downgrades its investment rating on Capita Group (The) PLC (LON:CPI) to sell (from neutral) and raised its price target to 140p (from 130p).
Capita PLC Broker Views
03 Feb, 2:39pm
StockMarketWire
Broker Forecast - Goldman Sachs issues a broker note on Capita Group (The) PLC
Goldman Sachs today reaffirms its conviction buy investment rating on Capita Group (The) PLC (LON:CPI) and raised its price target to 240p (from 200p).
Capita PLC Broker Views
03 Feb, 1:59pm
StockMarketWire
Broker Forecast - Deutsche Bank issues a broker note on Capita Group (The) PLC
Deutsche Bank today downgrades its investment rating on Capita Group (The) PLC (LON:CPI) to sell (from hold) and raised its price target to 155p (from 140p).
Please do not invest before doing your research !! :)
Im ready to pile in another £10k if it gets anywhere near 42
But might go in if it holds in the next few days
This stock really excites me now
As a trader , now holder I’ve researched it and I can only see good news.
There doesn’t seem to be any nasty surprises coming
Covid is priced in
If it’s a No deal there may be some retrace but even then it will climb back up
Fully committed for 12-24 months now
I was waiting for the ESS news
Capita were circa 185p earlier in the year and Covid struck
They have renewed and won new contracts since then and selling businesses to reduce those debt and increase earnings per share
DYOR but I think there is more positive than negative news
Personally I think this is a steal , I was just waiting for an opportunity
Others I’m in are Galliford Try and Costain
Both potential multi bagger recovery stocks
Good luck but I think 150p I will review
Capita will be involved in many new projects post 31st
Whether it no deal or a deal
The government has too many investments already in projects so the future is bright
It may retrace a little
Capita is volatile in that market fluctuations tend to impact this stock disproportionately up or down but I was thinking should I stay on the sidelines or buy back in
Took that decision today for the next 12-24 months