Member Info for sharehead

Why £1.50 target?

Both Serco and Capita were both £1.65 or above in Jan 2020

Capita was still restructuring the company at that time so the sp dropped and resulted in falling out of the FTSE 250 - that then compounded the fall as IIs tracking the FTSE 250 became forced sellers

As such, imo, the sp is currently at depressed levels because of forced selling, not because it deserves to be at this level- and in my experience sp that gets oversold due to forced selling soon bounces back

In this case bounce back could be 50 to 65p level imo

Barclay’s have an overweight fair value of 65p here

We are now winning contracts, previous customers are returning, we are reducing debt each year, there are dividends and potential share BUY backs on the horizon

I see us re-entering the FTSE 250 which would means all the IIs that sold instead becoming forced BUYers - taking the sp imo potentially to between 65p and £1

More updates on turnaround, dividends etc then ultimately take the sp back to where it was in Jan 2020 - ie £1.65

That’s my thoughts- and recently we have seen IIs buying circa 33 million shares and we had an update from Serco saying how well the outsourcing sector is rebounding

IMHO

Could have made a lot more than £490 if you had bought and held here during the last month or so - with even bigger gains ahead imo

https://www.marketscreener.com/amp/quote/stock/CAPITA-PLC-4007375/news/Capita-Agrees-on-Extension-to-PCSE-Contract-With-NHS-Valued-at-GBP94-Million-40656542/

Hi Dusty & AM - nice to see you both arrive back again

It like Wavering & AM - but improved

More GREAT news here

Capita plc - Capita secures 3-year extension to PCSE contract

7 June 2022

Capita secures three-year extension to

PCSE contract

Capita plc (‘Capita’) today announces it has secured a three-year extension with NHS England and NHS Improvement (NHSEI) to continue to fulfil the Primary Care Support England (PSCE) contract.

The contract extension, which is worth £94m over three years and runs until , will see Capita continue to deliver digital, logistical and support services for all of England’s primary care practitioners working in the NHS; this includes GPs, dentists, opticians and pharmacists.31 August 2025

The extension builds on the existing PCSE contract which Capita secured in 2015. Over the past seven years, Capita has invested significantly to ensure the delivery of complex digital transformation projects for NHSEI. Capita is now delivering these services more efficiently and at a lower cost to the client.

Lols Boris is going nowhere- he’s too convinced he’s the right person at the right time (especially with Ukraine situation) - I don’t have political views so don’t read this as any political preference.

But Capita’s in, imo, a very unique position as to weathering all the current storms - hugely undervalued, long term contracts, clear revenues and in an unloved sector thats coming back to life

That’s my thoughts anyway

I’ve been holding here for well over a year - so I’ve read every post in at leat that time - but my conviction to where this can go has never faltered- I think our time is coming soon

I have personally held 2 shares that did huge, almost unbelievable rises - unfortunately I bailed on both way to early :(

GGP - bought in at something like 0.08p sold at under 1p - big profit- but next time I looked it was at 42p

Solg - bought at around 1p sold around 2p - doubled my money- again next time I looked was around 40p

I know both are not at those levels now - before anyone tells me - but nevertheless they did go to those levels

Not making the same mistake here - this has the potential to join those two imo as one that can reach levels that are multi multi baggers - watch this space !

Gla

There was an article about AEX saying it could go as high as £1 a share- if you want to read it scroll down a few pages - as Battle posted the contents of the article

Exactly- I’ll continue buying up to at least 65p - which is Barclay’s overweight rating fair value target

As for the debt free - disposals could take the company debt free - but we’ll have to wait and see

Atb

* no longer

It’s been well documented on here and in Capita’s year end report that debt is being reduced, will be further reduced and free cash expected to be generated this year.

So debt is now longer a major concern imo and is being very successfully targeted through both disposals and also cost management (something like £250m cost savings made I think) - also the company on not resting on these achievements and are alive to reducing debt as low as they can

I remember GGP being considerably less than 1p, then I looked in awhile later and they were in the 40p’s - so I guess current sp doesn’t necessarily reflect future sp - especially when you own massive and hugely in demand assets

Run up to November is going to be very interesting

That’s a shame to hear

Well enjoy the summer I guess

https://wolfstreet.com/2021/10/26/teslas-market-cap-gigantic-v-next-10-automakers-v-teslas-global-market-share-minuscule/

Capita on the other hand is hugely UNDERVALUED imo

Actually I think it was the next 10 or 12 biggest

So what- they are selling non core elements

Well apart from the fact you don’t actually know what my BUY in price is, I’m relaxed- as I’ve said this is a forever hold