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Sadly, investor confidence here appears to be ebbing away.

What are we missing? Perhaps, with the collapse of SNP support and the prospect of more Labour MPs, the market believes there is now a stronger possibility of a Labour government after the next election. Labour policy is to encourage more insourcing of local public services, which might have an impact on Capita's future contracts.

Of course, a lot can happen before the next general election and, even if there is a Labour government, there's no certainty that Capita contracts will be adversely affected.

Trenners

I agree. I think any fine will be at the lower end of the scale, given that the effects of the hack were limited and CPI worked hard on the recovery operation. The problem here seems to be the slow drip of negative news, against which CPI has been surprisingly resilient in the past. The hack, plus the last TU, seemed to mark a watershed for many investors. It's going to take several positive TUs to restore any sort of confidence here, IMHO.

I’m still a CPI holder, albeit a modest one these days. Thanks to some luckily timed sells in the past, I’m still slightly up, even now. Of course I want CPI to do well, but I’m not kidding myself that, in the current climate, this is a screaming buy. It ain’t.

Xenor

I’m mostly in cash these days, but if I were looking to invest, it would be in something reasonably safe and paying a good divi, rather than a speculative punt.

Let's be honest. When you can net a blue chip like Legal & General at 215p with a 9% yield, why on earth would you be fishing for CPI?

Indeed, the day traders will have their fun.

If we're not in the 17s before the m̶o̶n̶t̶h̶ week is out, I'll be surprised.

Thirty pence is definitely realistic, provided the next few Qs don't present any booby traps. Trouble is, all that good work could be undone by, say, another data breach, which would have people running for the hills. I think we might see sub-15p before we see 30p. The market isn't providing much in the way of resistance.

Indeed, wasn't the original turnaround plan to move away from the not so profitable contracts, on which CPI is now largely reliant?

@Capitalizer

These are very good questions. As Mikee says, IR are the people to ask.

Posting supposed large buys isn't being 'supportive'. They could easily be day trades, that will be sold off again before the close.

I've been supportive of CPI for years (bought the rights issue, etc). I certainly don't need any lectures from someone who has the keyboard equivalent of verbal diarrhoea.

I'm not sure we need a running commentary of the trades. They are often misleading and incomplete. The sp is the thing that matters here.

I suspect AM bought some in the late 18s yesterday, given that he was talking up CPI somewhat this morning. He probably wants to get a few more cheaper, since they dipped below his buy price this morning. Trying to buy at the bottom is like jumping down a rabbit hole. You never know where you’ll end up.

Trenners

They are all negative macro-economic factors , that would have a depressing effect on most equities. To imagine CPI will be the exception to the rule is probably wishful thinking, especially given its track record.

Teddy100

I hope you're right, but it's very difficult to see what might swing it upwards in such a short timeframe.

With a FTSE250 exit, further Chinese economic jitters and a probable recession in sight, I think we could see 12-15p range by the end of the year, then a slow recovery in 2024. There's definitely a path back to 30p and eventually to 45p, but the question is, how low will it go in the meantime?

Hmm, looks like someone bought in yesterday, given their sudden change of tone.

In the current climate, I wouldn't want to call the bottom here. I agree that it will recover, eventually, but there's probably a lot more pain to come before then.

@Hexam

Quite so. Prior to the data breach, I think many of us thought we were over the worst of it and "What could possibly go wrong, that hasn't already?". Admittedly, a lot of Capita's poor publicity arises from what it does (i.e. work for central and local government - "We take the flak, so you don't have to."). A lot of the harm is self-inflicted though and Capita really needs to up its PR game. Unfortunately, Capita's ability to put its foot in it seems boundless and the market is continuing to punish it for that.

UK indices may be having a bad week, but Capita is having a bad five years.

Spamming the MB with old news isn’t going to affect the sp one jot, any more than regurgitating slight variations of same desperate nonsense is.

I wouldn’t get too fixated on 19p. Frankly, this could easily be sub-17p in the next few months. In my experience with penny shares, one ceases to be amazed by how low they can go.

Falling out of the FTSE250 will deliver another blow, as may regulatory fines for the data breach, along with CPI’s proven ability to deliver black swans.

There will doubtless be some contract gains and renewals to sweeten the pill, but don’t expect any fireworks. It’s going to be a long and tough crawl to recovery.

If Terry Smith can dump Amzn at a 30% loss, within a few months of buying, then I don’t think IIs will have any qualms about offloading CPI at a loss.

Sometimes you just have to admit that you backed a wrong un. That’s why diversification is so important. It’s the difference between being able to roll your eyes and going into meltdown, when a holding collapses.