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The cry for a 'class action lawsuit' is a natural and common reaction from holders facing a wipe out . We've heard it before: Debenhams, Flybe, Sirius Minerals et al. It rarely actually happens though - and on the rare occasions that it does, it very rarely succeeds. Most long term investors will have suffered a big (or total) loss on a holding at some time or other. It's better (for your sanity and your wallet) just to put it down to bad luck and move on.
It will have to be a damn good offer in order to persuade me (and others) to part with the near 10% yield. The rumours have talked of a £5Bn offer. Given that the current market cap is £4.67Bn, where's the carrot?
Airline profits are set to take off, says Deutsche Bank, upgrading three carriers to buy
Article:
https://archive.ph/TG3zL
I’ve added around the current price. I’m not expecting any fireworks, but it’s hard to imagine there won’t be a gradual improvement, as air travel volumes return to historic norms. The debt pile will take several years to pay down, but the market is forward looking. I think we’ll be in the 160-180p range by the end of this year and above £2, some time in 2024. Given that investors should be taking a 5-10-year view, IAG is probably a good long term investment.
Joo1
Don't forget to factor in dilution from the RI in 2020, so it's probably nearer 50% down. Also, there was a decent yield pre-Covid and now there's none. It will probably take 5-6 years before we see a similar divi again. £2 is probably achievable in the medium term, but I doubt we'll see £4 until the latter part of the decade.
I doubt there will be any great surprises in the budget. Post the Kwasikaze mini budget, the rule is ‘steady ahead’.
The SVB issues were created by a bank with extremely poor risk management and a fairly unique setup. The contagion is therefore quite limited. The market (and bank depositors) appear to have recognised this - and have also acknowledged the U.S. government's guarantees in the wake of the collapse. Of course, there will be further jitters in the banking sector, but we may already have seen the worst.
Priced-in or not, there’s a lot to be positive about at the moment (once people have untangled their knickers over the SVB blip - by end of this week probably).
https://www.proactiveinvestors.co.uk/companies/news/1008819/rolls-royce-powered-boeings-in-running-for-new-saudi-arabian-airline-1008819.html
Nice buy rating from The Times today:
https://archive.ph/6kft3
As ever, LGEN is hard to beat for yield, which is why most people buy.
If you're waiting for appreciable growth, however, you'll probably be dead before it happens. The average sp has barely moved in the past 8 years.
It shouldn’t. There will just be fewer shares at the same market cap.
I might take a punt here (a buy limit at 180p perhaps), but it doesn't look like there's much cheer on the horizon for Win. I think the divi will take a big hit. If they can hold onto their existing UK gov contracts and gain some others, things might start to look up in a year. Big ifs though.
Great results, which are reflected in the rapid uplift today (which doesn’t always happen on good news these days). I’ve been banging on about the need for a move to the main market for a long time. Great to see it’s finally going to happen. I appreciate it won’t be good news for those with IHT obligations, but the impending re-rate should give them the opportunity to get out with a good profit and invest back into them AIM market.
For 14%? I wouldn't, unless I needed the cash. I was down circa 85% on CPI for almost 3 years (now just 6%). I'm happy to stay and enjoy the ride up (including the inevitable dips).
Very healthy volume today: 18.4M (the 3 month average is 4.14). Looks like IIs and PIs are piling back in.
I just hope John Lewis sticks around for the £1 party in a couple of years' time. He must be knackered after 6 years of turning this ship around (though I'm sure he's sleeping a little easier these days).
Average (3 months) volume for CPI is 3.7M. Today’s volume was 26.5M. Busy day.
In 12 months time? With debt cleared, a divi and back in the FTSE 250, my guess is in the 70-80p range. Probably another year after that to get it to £1.
Capita’s ‘damned hard work’ pays dividends as shares soar
Tom Howard
Friday March 03 2023, 12.01am, The Times
When Jon Lewis took over as chief executive at Capita in 2017 its debt was more than £1 billion - today it is £85 million
Dividend payments could resume at Capita next year after the outsourcer swung back to an underlying profit in 2022, a feat its chief executive said was “the culmination of a few years of damned hard work”.
Once the biggest of the British outsourcers, Capita has been in recovery mode since Jon Lewis took over as chief executive at the end of 2017.
One of his first moves to get the company back on track was to suspend the dividend. Over the past five years, Lewis and his team have sold several “non-core” businesses, proceeds from which have been used to reduce debt. Another £485 million of businesses was sold last year.
When Lewis joined Capita, its debt was some way above £1 billion. It now stands at £85 million and by the summer the company is expected to have more cash than debts.
“The material uncertainty on the balance sheet has been removed,” Lewis, 61, said. “Between now and the half-year results in August, we will spend time defining and implementing the right capital structure for the business . . . and the board will make a decision as to what we may or may not want to do with regard to a dividend in 2024 or 2025.”
The possibility of the return of the dividend, plus a well-received set of full-year results, pushed Capita shares up 5¾p, or 19.7 per cent, to 34¾p, their highest level in more than a year.
Last year it did not have to compensate any clients for missing targets within its contracts, which range from recruiting for the army to running call centres for companies. That helped to lift adjusted pre-tax profits, which strip out the impact of the non-core sales, to £73.8 million in 2022, turning around a loss of £122.8 million a year earlier. Adjusted revenue rose by 2.4 per cent to £2.85 billion from £2.78 billion.
This. The UK business represents circa 10% of the group’s worldwide business- and the West Mids operation is a fraction of that. That said, NEX seems to be a holding always looking for an excuse to fall at the moment, so don’t expect a quick recovery. The divi is some compensation while we make the slow climb back to a normal market cap.