numberbiter
02 Feb 2018
Re: Dont rub in in Bill 1703 (see Lloyd's Bank for fuller answer), There is nothing wrong with Intangible Assets (per se) so in Unilver's case they are not a problem. Here (Unilever) Shareholders' Funds are €60,285 million and Goodwill is €16,881 million, giving a net figure of €43,404 positive. It is only a problem (as in Capita's case) when shareholders' funds less goodwill is negative. Hope this helps.
onewayticket
02 Feb 2018
Re: From Times All fundraising's have a cost aspect to them. Capita already have the money in the bank that's the genius of it. The turnaround specialist seems to have some serious backing.On that basis and on all the other measures announced its probably oversold. Its struggling today on the short side and it looks like any further profit margin has now gone. Holding Institutions seem to be using computer programs to buy up any available stock along with the longs. Additionally any institutions hedging will be closed and long gone before any PI's get to hear and then sadly it normally results in a short squeeze and margin calls.When it starts to stabilise the wise ones normally bank and wait for the next profit warning elsewhere.Lets see where we are in 12 months.Good luck. Own due diligence
Elena Saratov
02 Feb 2018
Re: From Times onewayticket,due diligence?You are correct that the fund raising is underwritten but that will cost Capita from the money raised.If the underwriters are left with shares after the fund raising they will pretty quickly off load them. About a month I would say.So anyone buying shares right now apart from shorters closing profits are taking a big risk.My advice is to wait for the fund raising, you can bet the issue price will be lower than today. Then the market will take it lower.That might be the point to consider purchases here.My view that the UK does not need this company, better for all if it follows Carillion into the abyss.If they made money for their shareholders then they might be worth preserving.But they do not.So watch it sink.
onewayticket
02 Feb 2018
Re: Dont rub in in Whilst you are professing for the opening of shorts I think some this morning may have already closed up. Where Lewis I think has succeeded is by putting it all out in the open and its already underwritten. The exact amount I suspect will revolve around what businesses are sold.The Times article I think highlights that there is an underlying core business out there that generates profits. Refocussed and debt off the balance sheet it should recover back to the 440p level. In the meantime lets see what on-core businesses get sold and how that adjusts things (and the share price I'd expect).Has it fallen too far for a profitable existing business. Probably but then each to their own interpretation.Some are probably switching to "longs"Own due diligence
onewayticket
02 Feb 2018
Re: From Times You know what I've read that Times article on Capita and the CEO and put some money on the table.I don't think any CEO in the land that overlapped in the same sectors as Carillion would not have thoroughly reviewed their business. Lewis was already on the case and I note with distinction the words in the Times article that he is something of a "turnaround specialist" He has amongst several priorities identified that in the present climate refocusing the business and getting to grips with debt is a priority. # Their is cash on the balance sheet # The dividend has suspended for now # The RI already has underwriting in place (meaning they will get their money)# That there are plans afoot to offload certain non-core businesses. I also note the comments that they "could raise many hundreds of millions from disposals if we wanted to."I also like the analysts summary that he had kitchen-sinked things. "City analysts described the plans as “kitchen-sinking” and said that while Capita would look very different in the future, it would survive."1 month chart suggests probably overdone.First of probably a few purchases and a 6 to 12 month time frame.Own due diligence
Elena Saratov
02 Feb 2018
Re: Dont rub in in I doubt spread betters alone are responsible for the fall here.No doubt institutions that may take part in the fund raising have taken out hedging shorts here.the time the sub 100p placing price is announced they can close positions when the market takes it lower which it nearly always does and they will have made enough money to derisk their taking part in the placing.CFDs aid liquidity, those holders that don't wish to sell up their shares CFD and spread bet account holders will do so for you! This share won't stop at 100p, its gaining momentum and expect 80% of the current value to disappear from the market cap.There will be brave investors who pile in at the bottom but it will be a high risk investment.PS For all those who may be looking for a non IG account, Prospreads offer a Spread betting account with Direct Market Access. This looks like a very good opening trade (short)
pyueck
02 Feb 2018
Re: Dont rub in in Spread betters dream? That assumes people have the foggiest clue which way a stock will move. Down yesterday up today, how is anybody spread betting supposed to know which way the wind will blow tomorrow.Spread betting is for most people a loss making exercise, certainly over the long run. What can be one persons dream is another persons nightmare. And sooner or later with the margins and financing costs for most even the dreams turn sour.
cashpharma
02 Feb 2018
Re: From Times New CEO has certainly thrown everyone else under a bus here to create a turnaround situation/story for his tenure. His share options are going to worth a fortune in a few years time.An opportunity for the brave investor to get onboard I suspect.
Johandesilva
02 Feb 2018
Re: Dont rub in in "... but either way, patience is the name of the game."---The problem with these forums is that we are not all playing the same game. The current situation is/was a spread-betting day-traders dreams. Hence the increased amount of posts when showing red. They are really really excited.
nk1999
01 Feb 2018
From Times "Capita, the troubled outsourcer which issued a fourth profit warning yesterday, was awarded almost £200 million of state contracts since its first alert 16 months ago.The 193 public service awards to the company since September 2016 have come despite government rules designed to limit taxpayer exposure to risky suppliers.The latest warning was part of a “triple whammy” of action to shore up the contractor’s balance sheet under Jonathan Lewis, the turnaround specialist appointed as chief executive last October to revive its fortunes. The plans, which wiped £1.1 billion off Capita’s stock market value and sent its shares to their lowest since 2002, down 47.5 per cent at 182½p, included:•A rights issue of up to £700 million, with standby underwriting in place;•Suspension of the dividend until Capita generates sustainable cashflow;•A cut in its 2018 underlying pre-tax profit forecast to between £270 million and £300 million, up to 30 per cent lower than market forecasts;•Offloading businesses to simplify its sprawling structure.City analysts described the plans as “kitchen-sinking” and said that while Capita would look very different in the future, it would survive.The share fall was painful for big institutional investors, such as Woodford Investment Management, which lost millions.Capita is one of the country’s biggest outsourcing companies, delivering wide-ranging services to the public and private sectors, employing almost 70,000 people and generating revenues of £4.9 billion. Its work ranges from collecting the TV licence fee for the BBC and mortgage administration services for the Co-op Bank to customer services for Three, the telecoms company, and services for the NHS and Ministry of Defence.Like several rivals in the sector, Capita has been hit by rising costs, a slowdown in decision-making from prospective customers and troublesome contracts. The collapse of Carillion, a rival outsourcer, this month has unnerved investors and civil servants and heaped intense regulatory scrutiny on the sector.Frank Field, chairman of the Commons work and pensions select committee, which is investigating Carillion, said: “Another day, another outsourcing firm with massive debt, a huge pension deficit, a KPMG audit and the Big Four popping up at every turn in the company’s chequered history.”Mr Lewis, who met a government representative yesterday, explained to the City why Capita was not the next Carillion: “We are not under some existential threat,” he said. “We have cash on the balance sheet today and we have underwriting for £700 million and could raise many hundreds of millions from disposals if we wanted to.“Did we buy up too many businesses over the last few years with too much debt on our balance sheet? Absolutely. I understand why people are making comparisons to Carillion, but they are just not appropriate.”Mr Lewis said that he had regular meetings with the government, which he said supported the company’s plans.A spokeswoman for the Cabinet Office said that the government monitored the “financial health of all of our strategic suppliers, including Capita” and did not “believe that any of our strategic suppliers are in a comparable position to Carillion”."
Elena Saratov
01 Feb 2018
Re: Marcap, Rights; Seaching for a bottom Predicting the bottom?This share has momentum. Those brave enough to take part in the placing will not be prepared to pay much more than 85p and then they will sell into any fake rise.I think the share may end up oversold which could be anywhere between 70-30p.A great share to short right now.There have been some dubious moments that any enquiry may uncover.
Elena Saratov
01 Feb 2018
Abandon Ship! Ignore the pleas by Government ministers this one is going down!From the Evil diaries."Capita (LON:CPI) updated the market this morning with an RNS on “transformation, capital structure, funding and trading outlook”. As I type the shares are down 145p at 203p.Matters are clearly as bad as described and very probably getting worse. There is no hope offered anywhere at all.CPI may fancy raising £700 million to bolster its balance sheet. I doubt if that is enough and, even if it were, wonder what would be the point in subscribing for new equity. Yes, it’s that bad."[link]
Kamon Yaboyah
01 Feb 2018
Re: Added at 360p for a 360 Perhaps a 180 might be preferable to a 360...
Bill1703
01 Feb 2018
Re: Dont rub in in "Why is anyone invested in the mid- to large-cap sector in the UK ATM? ... Everyone finds the odd share that hits the stars but, apart from a few select companies ... things really do look rather poor ATM for investors... Cash to invest due to a lump sum receipt - seemingly nowhere (in the UK) to invest it.... "KLM (as I feel you should be known) - I do know exactly what you mean, and I share your pain. Times like these are testing enough indeed, without being forced to listen to a stream of commentators telling us that stock markets are booming - and expected to refrain somehow from punching them in the face? Some people keep predicting a crash - don't know about them, but it feels like I (and it seems others) are already getting one, stock by stock.... death by a thousand SP (and dividend) cuts??BUT... and it's a big 'but', though it depends on your investment horizons and risk tolerance, etc... you have to step back and remind yourself - this is a good (potentially, GREAT) time to have funds to invest. As all the true long-term investors will tell you - particularly those of a contrarian, value-orientated mindset. Not necessarily a great time to BE invested, in these sort of areas... but either way, patience is the name of the game. You may feel much better about putting money in when everything is buoyant, but investing when both expectations and valuations are running high is far less likely to serve you well in the long term. Sure, there is significant specific risk lurking around every corner, as Capita demonstrates... but putting money in when sentiment is poor and expectations low is generally what you want, even if it doesn't feel like it - trust me! As long as you get your stock selection at least partly right - and as long as you accept that you are unlikely to buy at the very bottom, more than occasionally, and that things may get a bit worse before they get better...
Dictum de dicto
01 Feb 2018
HMG met Capita yesterday While we were arguing...[link]
