Sapan Gai, CCO at Sovereign Metals, discusses their superior graphite test results. Watch the video here.
Interesting those on Halifax have until 15th May to trade Tui - the very day of the next results release. Surely Halifax could have made effort to improve their timing?
Hi Trisor, Capita is currently losing money YoY, if the trend continues it'll weaken the market capitalisation value of the business, which has already suffered considerably due to YoY revenue reductions from nearly £5bn in 2015 down every single year hitting just £2.81bn for 2023. CPI may well have long term contracts but... there's little evidence they're proving to be lucrative, as else Revenues at the very least would have stopped falling.
So imo CPI has to generate some entirely new business, take some business off from its competitors, or make gargantuan efficiency gains with enough magnitude that as a bare minimum the revenues stabilise. Naturally this is way way easier to achieve in a growing economy... now Chancellor Hunt said at the despatch box when he presented his budget figs said OBR expects UK economy to grow 0.8% this year and 1.9% next year... problem is that is not happening. Growth has fallen short and debt is higher too. So the cards are sadly imo very stacked against CPI and other struggling businesses too. It's less of a problem for businesses with better financials.
Administration is not just an outside possibility, it's a very real possibility if demand is either weak or falls through the floor. That's because cuts can be made by a business to become more efficient... However, few businesses can weather full blown demand collapse, which is where I believe UK economy is heading towards, at full steam ahead right now too.
Trisor, I don't think there will be a global crash, a correction perhaps but because USA economy is very strong the Fed should only need to carry out a little trimming of bank rates to gently support the strong economy. I don't think they'll need to make rounds of steep cuts to keep the wheels turning...
Conversely UK is looking very weak, many more cuts will be needed to support businesses and demand but the weak £ will prevent BoE from delivering the number of cuts required to properly support the economy. When BoE makes even a small cut the inflations will return with considerably more gusto than anyone anticipates. BoE will be stuck between a rock & hard place, the result being a whole heap of pain as few will feel any benefits from MPC decisions.
RR - Should the SP head sub 10p then my bet would pivot on the spot towards it heading rather quickly into administration. I don't think there will be enough economic activity to offer CPI much by way of support. Tough times are coming.
Zuckerberg has gone large betting on AI for Meta... It hasn't helped their SP...
Since 24th Apr each time there have been attempts to pull the SP downwards below 1.04p It seems there's heavy buying kicking in to push stock back upwards. Though with each attempt made it's bouncing upwards less and less... Are we going to see the resistance at around 104p fail? Or can the appetite for BT stock prove strong enough to power it upwards if the shorts give up and close out?
I empathise with your situation Trisor and what I'm about to say probably doesn't help you here but.... being honest the factor which weighed on my decision to avoid investing in CPI in the end was I couldn't see good probability for either short or mid-term gains.
I only saw potential for dipping in for a very long term hold and right now I saw greater potential for mid-term gains in another equity. I'm keeping a close eye on CPI though because I'm open minded of the potential for that to change and I could take a position if it does.... Signals I'm looking out for in priority order: 1. General Election UK - if this happens very soon I will very likely take up a position but... it has to be soon, longer it takes the higher the odds I won't be buying in. 2. Better than anticipated results at the next CPI results, I'd only make an investment before seeing the results if a GE comes beforehand. 3. Significant uptick in UK GDP with simultaneous reduction in unemployment figs (unlikely to happen). 4. USA interest rate cut before BoE (unlikely to happen).
Sorry meant to add that a takeover bid could prove acceptable to existing shareholders at anything north of 28p. Anything less and I think it'd be rejected on the pinned hopes of AH making a turnaround and shareholders seeing better returns for a longer wait.
Most welcome... well I think CPI is already ripe for a takeover bid right now, that's because I can't see that another 1p-3p off the SP would make all that much difference to any takeover offer price which would have to offer something extra than the current price range to current holders but... I have to say that I don't think RWC share that view because else why sell the 1% they just offloaded? They appear to be betting a takeover bid will not be imminent with their recent move to unload.
Hi Trisor, I think it's very possible RWC may have been selling to counter losses on its other investments, perhaps. Either that or it may be their opinion CPI has further yet to fall, and they may have decided to either limit their exposure to those further falls or on positioning themselves to repurchase the sold share holdings for a cheaper SP? - Once thing I am more certain of... Given RWC selling 1% off I think they don't see a bid being immediately forthcoming.
As for prospects of a possible share consolidation for CPI - I think it'd be a highly risky move as it could trigger a massive fire sale by those with their triggers already hovering over the sell button... it'd prove hard to put that back into the bottle because so far as I can see the only 'hope' out there for CPI is the leadership that Adolfo Hernandez has brought to the table and many appear to agree that it'll take significant time to turn the tanker into calmer waters.
Capita is looking rather ripe for a takeover bid, I agree with that...
Huge moves overnight by US dollar strengthening rapidly against Japanese Yen... However, I don't think Japan will be alone in facing down this issue and UK £ imo will face some trouble on this front in the imminent future too... Does a weaker £ aid Capita? How much of it's earnings are drawn in from business abroad in earned foreign currency?
Given their sale already dented SP on Thurs 25th, (dropped at the open, again around 9am, and 13.30pm too)... I suggest there were plenty of buyers in the waiting for just a little less than everything they were selling because by COP 26th SP had stabilised...
No guarantee they will seek to sell some more next week and buyers appear to see value in the 12.8-13.5p range.
13.46p? - Best of luck! I opted for BT on the last occasion instead of CPI but I had been eyeing up buying a small stake in CPI.
Even I don't think it'll hit 3p!
I simply asked a question as just mentioning what I have been seeing, weakness in other shares which I've noticed tend to move in a similar pattern to TUI - Mike too has mentioned this pattern going on for many months now. If you have a counter opinion please share it.
I'm now seeing some early signals of selling and either almost red, or slightly red, on my watchlist... could we be in for another sell off and Sea of Red by COP today?
Hopefully UBS lose some cash on this blatant attempt to talk BT stock down.
Keep on topping up on the drops! ☀️👍
*but not bit
*seen not been
*naturally the law is NOT perfect, not naturally the law is perfect
Clearly I can't type today!