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AM we already on in place contracts that span upwards to 10 years that we can make more efficient. Can we bid future contracts even more efficiently, maybe.
But you need a lot more than just efficiencies to win them. Cost is only part of what you can to demonstrate. You need to show track record- and that’s the moat we have imo
And seriously managing costs in all ways, headcount, pay, AI efficiencies is exactly what successful companies undertake and understand. That’s how you grow margins. That’s what puts you on a solid footing.
If you are serious about cost cutting you have to make decisions in line with that strategy- a second 10% increase is a lot- something in between is not an unreasonable compromise I believe. It shows cost control is now being implemented and properly managed.
I believe the facts are that Capita is in a strong position for growth
- disposals complete and funds received were in excess of targets
- debt massively reduced
- pension top up payments complete this year
- winning new multi million multi year contracts with new and returning clients
- good track record of rolling over existing contracts
- new CEO with a big focus on AI and making Capita more digital and efficient
- collaboration agreement with Microsoft
- dividends back on the radar
- revenue growing
- prediction of rerate to circa 70p
It’s no wonder to me that those not currently invested are desperate to get in - hence spending so much of their time and effort here
Imo
I guess the expression BUY the dip is recognition of the fact that share prices don’t move in a straight line, but dips are just that, temporary retraces on the rerate up.
We’ve had fund managers predicting potential share price multi bags
Even the recent broker note identified big potential beyond their expected short term fair value target of 23p
Take advantage of opportunities as they arise imo
Gla
Sale completed today and more funds landed. No more disposals planned. We are in a strong position now imo as debt massively reduced with a plan to move to a more digitally integrated company and we have an agreement with Microsoft to take this forward
It’s no surprise that people are desperate to load up while trying to talk down the company before the next share price leg up kicks in
Looks good to me
Gla
I suppose the definition of long is that we are not in panic as to whether this moves fractions of pennies down, knowing we will to decide is this the best we get before the rise. Or if it moves up have we missed the dip and should have already bought back, must be so stressful imo
We know this is massively undervalued and we believe it will rerate significantly and everything else along the journey is just noise
We don’t care amount small movements because we have our eyes on the big picture, the big prize, that’s where the real rewards are
Imo