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This article was from Simply Wall Street back in August
They are working on the balance sheet , disposals are happening
New contracts are being won and existing ones being renegotiated
Debt is being worked on actively but refinance options are available
Government is still doling out contracts and Capita always in the bidding
All we need is some positive market sentiment and this will absolutely fly compared to peers and other damaged stocks
Ridiculously cheap in my opinion
Best article I’ve seen- from back in August
The news is much better now :
Capita plc (LON:CPI), might not be a large cap stock, but it received a lot of attention from a substantial price increase on the LSE over the last few months. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, could the stock still be trading at a relatively cheap price? Today I will analyse the most recent data on Capita’s outlook and valuation to see if the opportunity still exists.
What is Capita worth?
Great news for investors – Capita is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is £0.62, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. Although, there may be another chance to buy again in the future. This is because Capita’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity.
What does the future of Capita look like?
earnings-and-revenue-growth
LSE:CPI Earnings and Revenue Growth August 6th 2020
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. With profit expected to grow by 62% over the next year, the near-term future seems bright for Capita. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.
What this means for you:
Are you a shareholder? Since CPI is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on CPI for a while, now might be the time to make a leap. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy CPI. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed buy.
With this in mind, we wouldn't consider investing in a stock unless we had a thorough understanding of the risks. Be aware that Capita is showing 2 warning signs in our investment analysis and 1 of those makes us a bit uncomfortable
Good luck all
Please do your own research before investing
Great analysis
There are some major bargains if you study the market
Covid , has brought about some once in 5-10 year opportunities and with Brexit , if you pick the right stocks
Hence Capita looks great , they need to address the debt but with money being so cheap , they could refinance the debt and with their disposal strategy and still winning new contracts I’m pretty confident
Good luck
Agree
Galliford Try
Costain
Capita
3 stocks very undervalued
Sit tight on these for 2021/22
Only good news flow
The market mood , covid , Brexit has been against us
This one is going to absolutely fly next year and beyond
The ESS disposal was my trigger point
Holding approx 100k shares
And firmly on board after trading in and out for 3 months
18-24 months is my timeframe and if I come across any more money I will load up again
GLA
Schroders buying in at 38 , that’s all the confidence I need
Just gutted I didn’t wait until this morning to pile in instead of Friday
I own 100k shares plus and would have made a difference
But I’m seeing good news flowing and steps being taken by the management
A nice little move , all the negative covid , Brexit news caused an irrational drop
A chance to top up 5% cheaper
I jumped the gun on Friday and bought more
But it’s nearly back