Member Info for TerryM1

Trisor

"With all that good news how does the Board explain a near 55 p reduction of the share price since the rights issue."

In fact a 115p reduction as the SP was 130p but the RI 70p.

I have also sent an email to stephanie.little@capita.com saying

Since John Lewis took over the share price has dropped 95%.

John Lewis said the share price would be 97p.

In the RI document

“Capita is targeting annualised initial cost savings of £175 million by the end of 2020. The successful implementation of the new strategy is expected to generate at least £200 million of sustainable annual, post-tax free cash flow in 2020, before exceptional and restructuring charges and additional voluntary pension contributions”

The company currently worth far less than the money raised in the rights issue.

The company is only a shell of what it once was before as all the good bits have been sold off and still had to raise over £100m in high priced debt just a few months ago to keep it going.

Given the poor performance John Lewis and the rest of the wealth destroying Board should go now with no compensation and should hang their heads in shame.

Not expecting a good response but if enough of us do this perhaps, just perhaps it will wake them up.

Although not taken over yet take a look at Serica Energy (SQZ) a good takeover at a great price was rejected because the BOD would lose their jobs and they done a deal with Mercuria making Mercuria the largest shareholder for some very overpriced assets in the UK subject to the windfall tax and some losses, all cash stripped out. Shares plunged and never recovered but BOD kept their jobs, many people are expecting a takeover at a knock down price and taken private once the restricted period ends. Also SQL hedged Oil price with Mercuria at really low level so more pain for SQZ.

MrG123

"Why would the directors agree to such a low takeover price"

Deals can be done for the directors to sweeten the pot.

This has happened 4 times this year to companies I own, 2 gone private for ridiculously low prices with no PIs in agreement but BOD still pushed it though along with the large shareholders. The only explanation is there was something in it for the BOD or perhaps had no choice but there was obviously a lot in it for the IIs to get these companies at a knock down prices and then perhaps float them back on the SE in a few years. Take a look at KAPE and BOTB, KAPE was a especially bad.

The other 2 getting a reasonable return but not as much as it should have been but at least some profit.

ARM is another example, when this happen to me I made decent profit did not want to sell but had no choice, now back on NYSE at huge multiples for the price when it went private and I think it is about only half of what was taken private re listed.

Sharehead

"Ok, well we have very different opinions But there’s nothing wrong with that imo"

Agreed, as long as we keep it polite (which you do) it is good to have an alternative views.

During the comments on the hack got a lot of c**p saying I was shorting the share, I was someone else etc which was never the case.

Don't get me wrong I really would like to see CPI succeed but for now have given up hope and keep to use the capital loses at right point or hopefully for a turnaround.

Sharehead

"I think even just our assets are valued higher than our current mcap"

I love your optermission.

But you have got to ask yourself why, either the market are not buying this turn around story or are expecting more one off bad news.

As I said before "it is not what I think that counts, it is what they think"

Sharehead

"I do believe in the turnaround. It’s visible, it’s tangible."

It may well be but I also believe in the ability for JL and the BOD to c**k it up, call me a cynic but I have heard this all before time and time again. In the RI document

“Capita is targeting annualised initial cost savings of £175 million by the end of 2020. The successful implementation of the new strategy is expected to generate at least £200 million of sustainable annual, post-tax free cash flow in 2020, before exceptional and restructuring charges and additional voluntary pension contributions”

JLs 97p

Until a we see a set of accounts without the usual one offs with some decent profit and dividend to follow I am not confident. It is clear Mr Market does not believe this either the BOD have lost the confidence of wider financial world and excuses will not wash anymore, we must have some sustainable profit.

MrG123

If not taken over or taken private for a low price, even the 90p muted may be high at present. This is probably my worst fear if the SP stays this low or just keeps dropping, we need proper BB to help prevent this.

AimMaster2018

"Arnt councils getting bankrupt??? Imho"

My local council Woking is well and truly bankrupt, 1 in 5 staff set for redundancy and no hope of balancing the books for many years let alone pay the huge debts, the man who caused it gone off to Spain with loads of cash. Perhaps JL might like to have a go at sorting it out, sell everything and be in a worse state than when you started.

Sharehead

"The question is are we in a position whereby the company is now moving forward?"

Although a good thing it is pointless for shareholders if all that happens is the SP keeps dropping and no dividends.

My point are more general that JL and the BOD in effect crashed the car and they are still the ones with the car keys.

Hexam

I take your point about solvency but again and obviously better for shareholders the company does not go bankrupt which I agree is unlikely but as shareholders we are here for returns not to fund a lifestyle choice for the people working for Capita, they need to pay something back to us.

Trisor

They may have put 300k which in perhaps giving them losses of 30k but how much have they taken out for abysmal performance, that what concerns me.

Sharehead

"Well, it’s been quite the frenzy here. Amongst all the negative posts it’s easy to loose perspective"

The perspective is

1. Since JL took over the SP dropped 95% and still dropping.

2. The company is worth far less than the cash raised in the Rights Issue.

3. Just a few months ago they had to raise over £100m in high interest bonds to keep the company going.

5. JL and the rest of the useless BOD that caused this disaster are still here.

6. Hardly anyone trusts JL and the BOD which is why the SP is crashing.

7. CPI is out of options for more cash, zero chance of a rights issue and very unlikely will be able to raise funds from banks for more high interest bond issues.

8. The recent bonds issued has increased risk to shareholders as they will have preference if anything goes wrong.

Hexam

"It can have some unwanted consequences"

The main unwanted consequence is that we are losing a lot of money while the JL and the BOD have gone to ground while banking there great remuneration packages.

Joseywales

Agreed it is not the MMs but the useless JL and the BOD, the markets are not down 95% in 5 years.

Pb1001

I think you are right, from memory it was 130p at the time of the rights issue , when you get to my age these memories become a bit vague.

Nofear

"I cannot get my head around as to why this relentless attack on the cpi share price has not raised any concerns with Capita IR which seems to be uninterested and totally silent."

Why is this a surprise they have been like this for many years, take the hack, went to ground, only said something when it they could not stay silent any longer and then only gave half truths at best, it gave the press a field day which took over the narrative which in turn sent the SP lower. It's what they do.

Teddy100

"in 4 years the share has been decimated by over 90%, what a fecking ****-e show."

In fact the the share is down over 98% in just over 6 years which includes a rights issue of 70p raising far more money that the it is worth now.

When I put in for the Rights issue I had no idea JL and the BOD were going for the industrial Bewster's millions award not only blowing all the Rights Issue cash but most of CPI's assets. It is frightening to think of how much cash this company has burnt through and then still had to raise over £100m in high interest bonds. At the Rights issue time I though JL and the BOD were going to restructure CPI, make cuts, get new profitable contracts not sell off the family silver borrow more money via bonds and crash the share price. The one thing they have been good at is being hacked, finding more one offs for the accounts, excuses, broken promises, paying JL and the BOD large sums from our money for an abject failure and causing misery to the shareholders.

We can all discuss if this is worth 15p, 17p, 20p etc but it was 130p when JL took over and £13.00 pre rights and you have to add in inflation.

The 2 good things about CPI is that is it not longer a large part of my portfolio (due the SP dropping) so I no longer worry about the SP, the most of the money has gone for good and I have lot of capital losses to use to keep my tax down for a very long time, not what you would say a win win. Even the life long CPI fans like Eatsocks have gone to ground and I not here to defend this mess so I no longer get attacked by him when I post the truth.

JL should go now along with the rest of the useless BOD with no compensation and be replaced by people who known how to run a company.

Sharehead

"Some thinking they can hang on a bit more and buy for a bit less"

Most thinking how do I get out of this mess, sell now and cut my losses or wait in the hope I can get out on a better price.

Where is the money going? interest bearing bank A/Cs? Bonds? Gold and silver have jogged up a bit.

For most paying mortgage and interest on other debts.

For me spare cash in monthly savers upto 8% and Santander instant access 5.2%, some in gold and some in Uranium, my best performing asset , world wide shortage so worth a look.

Would like to put more in DEC at these prices but too heavily weighted already and will not consider increasing until BOD takes the SP crash seriously and starts a proper buybacks.

Morning Nofear

Can't wait for Adolfo to start hopefully soon, we may see direction of travel soon after he begins but will take a time to stamp his mark and if all goes well turn this around.

This could be the biggest change since JL took over and probably are our best hope so hoping this does not turn out to be our next best dope as clearly things can't go on like this so. However concerned that JL will be about for quite a time while picking up his great remuneration package and may it difficult for the new guy to make his mark until JL goes as this company has been shaped in JLs image and he which has turned out to be a disaster.

As I said a time ago we are stuck in the 16p - 17p range depending how the stock market is doing, we will probably stay here for time until some significant news shifts the price. Contract wins are good but had many of these since JL took over and we all know the result and no amount of positive talk from the company will help as deja vu all over again, we need some good figures.

I really don't think it is the Markets Makers holding this back, I heard this so many times when shares are performing badly, there is not enough buyers due to the fact that very few people have any confidence in the BOD. Too many people and institutions have been burned by this share for years (helped take Neil Woodford down), lots of promises of jam tomorrow so you live in hope and when you think it can't get worse it does. When there was some light at end of the tunnel it turned out to be a flamethrower, they get hacked twice and make it worse handling the PR badly giving the press a field day.

For this SP to turn around we need some good news and decent set of accounts, perhaps a small dividend, BOD buying shares is a good sign and perhaps the new guy can breathe some life into this old dog and change the BOD so being a director means you add value to the company not just a lifestyle choice for those with connections.

It is not the market makers that got us in the terrible position but the useless BOD and of course JL.