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Capita general share chat (cpi)

Discussion in 'General Share Chat' started by Steamy, Jun 14, 2015.

  1. ShortTracker

    ShortTracker Auto Post Alert

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  2. ShortTracker

    ShortTracker Auto Post Alert

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  3. ShortTracker

    ShortTracker Auto Post Alert

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  5. Mongoose82

    Mongoose82 A Legendary Member

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    "The concerns that we highlighted in Q1 are now in the price. Growth expectations are likely to be cut too far during post-Brexit hysteria. C.30% share price underperformance (-6m): Capita has fallen to our (much reduced) target price faster than we had expected, with understandable concerns about HMG paralysis post Brexit at the front of investors’ minds. Post the excitement of Brexit, we’re sticking with our 4%+ organic growth target for next year. We base this on a six- year contract length and 50% win rate on Feb’s £4.7bn pipeline (both conservative), and on 3% attrition and a 1% fall in the transactional business. The majority of the pipeline is not public sector."

    Panmure note just out: Https://www.research-tree.com/Company/GB00B23K0M20
     
    MedicInvestor likes this.
  6. ShortTracker

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  7. Bergerac

    Bergerac A Legendary Member

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    Has anybody got any idea as to why Capita SP went down today?
     
  8. MedicInvestor

    MedicInvestor Member

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    I bought into Capita today as a recovery share.
     
    Steamy likes this.
  9. StarTom

    StarTom Demi God of BlueShare

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    Seems your timing was pretty good. Added to my watch list and I am monitoring short positions (3.04% declared) before I decide to buy in.
     
    MedicInvestor likes this.
  10. MedicInvestor

    MedicInvestor Member

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    Yep, didn't expect to see a 7% rise so fast. TBH 4 out of the 5 shares which I have bought as a recovery in the past week, have been performing well.
     
    StarTom likes this.
  11. Richie

    Richie Demi God of BlueShare

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    Ive bought these too lately. First lot was about 2 weeks ago at 512p. Will watch and possibly add as funds allow
     
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  12. Walter @ WalbrockResearch

    Walter @ WalbrockResearch Member

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    Capita declining share price didn’t happen because of problems in the past few years, but occur much earlier (you are talking about the time during the financial crisis). By using secondary metrics like Sales per employee, you would have noticed that productivity per staff has stalled and was experiencing a gradual decline.

    See here: - http://bit.ly/2wA7LSB

    Another interesting observation, which could disrupt the way we analysis market valuation is to pick the most important financial/non-financial data. For Capita, it is their employees.

    So, what you do is divide the employee numbers by market capitalisation to get market capitalisation per employee. Then you divide employee numbers by normalised profits to get normalised profit per employee.
    Next, divide Market Capitalisation per employee over Normalised profit per employee to get multiple. Much like the PE ratio, a low number signals cheap valuation and vice-versa.

    You measure that against Capita’s share price to achieve this correlation. http://bit.ly/2xUjO0V

    This gradual internal inefficiency has led to their share price decline.
     

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