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Looking 12-24 ahead this will be a lot higher
It’s just very short term there is an opportunity to load up
The general market sentiment suggests a fall , nothing to do with how the company strategy is going
All good on that front
Just will re assess and buy more
I’ve sold my position as I see this dropping a few % short term
That’s my trigger point to load up
Schroders buying at 38 gave me a lot of confidence
But I felt this general market sentiment could cause a few sellers and an opportunity to buy back in
This is shortly about to become an absolute steal but if I can pick up more shares for less why not
Sitting tight and holding for the re rate
This is a bargain and x 3 x 4 bagger in my opinion within the next 12-24 months
The contracts keep coming
Disposals are happening
They will start to generate cash
They will service and renegotiate their debt obligations
All good news
Didar,
In my opinion , this is a sleeping giant
If you look at the multiply businesses are are involved in
Recently set up a consulting division which they are looking to expand overseas
The management are turnaround experts
Debt levels are being addressed but Covid struck
So whatever your reasons for buying in , it’s going to take longer
4/5 year bet , I think there is no reason why it can’t be a multi bagger
It’s a uniquely placed business and its support services will be vital to many global businesses looking to transform and digitise their businesses in a post Covid world
I’m extremely excited by Capita and will be buying more
Schroders , have recently bought in at 38p
They are in for the long haul
The potential Downside is minimal
The potential upside is huge
In short
Massive over exaggerated share price correction
Covid had massively hit their recovery plans
I think it’s got huge upside potential but not short term
It’s a 1.50-2.00 share within 18-24 months but Covid is not helping
This is from June 2019 , they haven’t even had a chance to put plans into action and deliver due to Covid
They have global ambition - this is on my pension
The more I see it the more I believe I could be in it for the next 5-10 years
https://www.capita.com/news/focusing-long-term-growth-appointment-new-global-tech-services-executive
John Lewis came into Capita at the back end of 2017
He’s only really had 2018-2019 before Covid struck
There are legacy issues with the business which he is addressing
A company going for major expansion in its quest for growth took its eye off the ball , this giant will come around
It’s only been a couple of years
It’s not easy turning around a large ship ,
Have faith and patience will be rewarded
I don’t believe in quick money anymore , chasing quick money can lead to over trading and nursing huge losses
I’ve done it , lost circa £750k in 2000 , thankfully was not in the markets until, more recently as I’ve set up multiple businesses and my focus was there
I think it’s a multi bagger for people in their 30s
I see £1.50 upwards which will do me fine
I’m prepared to wait it out
Most of it is tied up in Tax free
This share will bounce back
There is sexy money available elsewhere but with it cinew risk
I think downside risk is limited with capita but upside potential is way higher than current
It was £1.85 in the last 12 months
It has been decimated especially due to covid and was also not generating the kinds of returns hence share price was in free fall
But I believe we have great turnaround specialists at the helm and they haven’t been in the job too long
Is see 12-24 months timeframe and we can all come back to this board and smile
Good luck and DYOR
Bo,
Yes it’s just a longer threshold
If you go into the company website now and look at the various business capita comprise of it will give you comfort
Yes they are a giant and are trying to become more nimble
Agreed that there are other recovery plays out there that you could allocate funds to and then come back into capita once it starts to move
By the way what other recovery stocks do you have your eyes on please ?
I have been in Costain and Galliford Try
Cheers and good luck
I have a slightly different view
Capita individually broken down parts has more value
Strategic disposals are part of their plan to bring firm debt and extract value , there will be more parts hived off as the management look to streamline the business
Selling off of other parts of the business like ESS will happen as try some to be a more nimble business
They are also in my opinion an attractive private equity acquisition
The key management are turnaround restructuring experts
This is a sleeping giant where the pandemic will cause inevitable delays but I’m seeing a multi bagger