The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
I've averaged +30% every time, invest, sell, reinvest, compunded a strong 6 figure profit £££ in around a year :))) Im a happy bunny and my strategy has been good for me
If you know what you are doing there is money to be made here, the fall off and upside provide that at every turn. This one is a yo-yo. 30p is looking a good buy in point again.
Unfortunately as a business its fallen off a cliff under current stewardship. No question its failed. If you have been investing banking on a turnaround strategy in the last couple of years. Im afraid you would be onto a loser with this one. The city no longer class this as a turnaround, the capita sell offs are largely a salvage and stay afloat operation now. You cannot class a £4.58 down to 31p a successful transformation at all. What the city think of that is reflected in the price.
Theres enough in those swings to make a lot of money if you know what you are doing. I've made a lot of money doing exactly that. It works for me :)))
Buy cheap, dont get greedy and sell on the up.
If you've been in this long then its a sad tale. Never get too attached to particular stocks as you will get fingers burnt..You cant call a board that overseas a drop from £4.58 down to 31p during their transformation plan a success. It is not and thats exactly how the city views it which is why this share struggles so badly.
Theres no long money in this right now Im afraid. I buy in at around these levels and ship out at around +30%. Capita seems to operate within that band regularly and I've capitalised on that regularly :-)) So always a quick buck to be made. Normally a lead upto results is bouyant period.
The CEO was appointed 1/12/2017 when the price was £4.58.
Whatever the boards plan was its not working and its failed. Share is now at 31p. Its an abject failure whichever way you look at it from a company and investor perspective. Time for fresh ideas.
However there is still money to be made if you buy in cheap enough at these prices. I doubt its ever going to go much higher than 45-50p for a long time if it moves up. They have been downsizing and the news that comes out is never great.
I think they probably need to change the board shortly. Whatever their plan was its failed and investors are not happy. If it carries on like this this board will probably drive this company into the ground. Transformation has failed badly.
They badly need a new board with fresh ideas to try save capita.
This share is not moving in the right direction. I reckon theres probably some bad news brewing.
Tempted to buy back in if it gets to 30p although it needs some good news to get it back to 40p. Anything over 30p is looking too dear to buy in to make a quick buck I would say.
Hi, this one is a yo-yo but these recent sp drops do indicate theres very little support for capita. I think the main problem is selling off divisions to help raise cash should help but this has been overshadowed by what appears to be a failed transformation.
If it aint broke dont try to fix it. I think they have probably made things worse by trying this transformation. I dont think they will go bust but they are priced to fail because theres no confidence in the leadership and transformation. Its a yo yo so will bounce up at some point but not by much I dont think. If it gets to 40s that would be good.
I sold out @37p around two weeks ago. Bought in @ 34p.
Was going to hold on until 43-45p but it wasn't moving quick enough and didnt like the signs so bailed for the time being. I'm not long term on this as future is far too shady Money to be made on this one short term but you have to be on your toes :-)))
Hi pasmore and wednesday,
Agree with passmore that capita is not in great shape but that really is a problem for another day. But this is likely to get to 45p without too much trouble.
Its a yo-yo share and trickling news of firesales of divisions and hope of results should help it back upto 45 by results time. I got in at 34p again few weeks back and will be looking at +30% and get out. I agree with you it should get back to around 45p ahead of results. I have traded this multiple times last year and made +30% each time, thats my sell off point. I've made a comounded 6 figure profit on this share alone and am currently up 10% again :-)
So overall capita is in bad shape and the company is in trouble for sure but the yo-yo is very real and you can make money from it :-))))
46/47 there will still be people buying in at tht price but I will be selling at 45p. The fin results are going to bad for a long time, they will win lots of contracts as well. None of that matters really because it moves when they sell off bits. It hits a low on financials then it comes back on sell off and other news. Its the same pattern over and over. I get in and get out anr get in again when it falls. Its going to continue because capita has tons of little divisions like this Amt it wants to get rid of. I think the ppl at the top simply dont understand all the divisions the cimpany is made out of. I can totally understand why they want to sell bits off like this. Long may it cobtinue :-) I have made money every single time on this stock :-))))
Hi simon, i thought it was over too until it fell to low 30s again. I filled and Im up again. Todays news will probablly help it keep tickling up :-))))
Theres no business sense in selling profitable divisions and its strange capita is holding on to all the loss making ones. Anyhows I dont care about all that or any contracts they win. None of that moves the price. What moves it is when they stick to the narrative they told the city wh8ch is disposals to raise cash and return to core business.
Of course they are fire selling off profitable divisions. Who cares, personally I dont give a hoot. It hit 34p and I was really surprised to get a fill on my order, its gone up and now todays news is just a nice xmas gift . Merry xmas to you all and just follow the pattern, ive made everytime its a gift:-))
Hello aimaster, capita was torpedoed below the water line ages ago. Its probably like you say done for sinking ship. Thing is they have a narrative to the city of disposals which they are keeping up. They will continually be selling off firesale divisions like this until nothing is left.
You are right they are a problem share but there is still good money to be made while it goes down. When it hits low 30s buy in and then sell in the 40s. Ive stuck to that and made six figures on this :-)))))) its a gift that keeps giving. Ive got zero interest in the companies long term, just happy to fleece the pattern :-)
I got a great fill ag 34p a few days ago and I'm already up. Wont be hanging onto to it long as purely been daytrading this. Todays news of this sell off should be great for day traders :-)
No sensible business sells off divisions with 77m assets, revenue of 40m and profits of 12m for only £23m plus £17m potential add ons.
This is what makes this share such a great short term play. I have averaged 30% everytime in this and have compunded over double my money. :-)))) We all know capita is a broken ship but theres plenty ways to make loot off it as it sinks. Ita a perfect smash and grab scenario
Footfall has had a tough time of it but all retailers who have weathered the storm and have strong ecommerce will come back strong. If they are still here now they have it all to themselves at some point soon
20p is unlikely this year because the stockmarket will close for Xmas. Obviously capita is in trouble because the share has collapsed to be this low. But it seems to bounce regularly between 30 and 50. A lot of people dont like it and call it crapita, understand all that. You can can still make money out of a dog like this. I buy when it falls and sell without getting too greedy. Made a lot this year on cpi, avg of 30% everytime so no point moaning if you guys have made a loss.
Might dip a little but should be ok as they have e-commerce presence and learnt not to be 100% reliant on footfall
Sure is bumpy ride but there may be no lockowns so could be a quick earner. This can easily be up 10% in a flash
Call it a dog or whatever, for sure somethings wrong in the company. I got a good fill 34p and will happily offload in the 40s. Feel sorry for anyone thats made a loss but you cant be upset at people who are making money like this