Evil Knievil: Fill yer boots

It depends upon how one reads Capita‘s (LON:CPI) trading update issued on Tuesday morning last. If CPI have made £115m in three months, it is not unreasonable to postulate a profit of £460m for the year ending September 2021. And, on that basis, it is on a PE of less than 2. Or put another way CPI is a fill yer boots invitation at 36p.

However, the directors clearly warn that times remain uncertain since Covid still stalks the land. That noted, I wouldn’t worry about that. So, it is fill yer boots time after all.

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N Brown (LON:BWNG) is raising £94m at 57p. The shares stand at a 5p discount and will remain there for some weeks. Obviously, there is no need to subscribe for new shares but BWNG remains a strong buy. 

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I have been asked to comment on Caribbean (LON:CIHL). This has slipped back from 60p to 38p. As far as I am aware it is just ennui that has set in. Time to buy, I suppose.

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Finally, there is a new force in the land in that for many years Andrew Left of Citron has been bonking shares on the head. So much so that the waves of selling are stale by the time they get over here. Instead we now have Gabriel Grego of Quintessential Capital as a new force in the land. He is a very courteous and thorough fellow who came to my office some years ago when he was demolishing Globo, an abject fraud. He now highlights Penumbra (NYSE:PEN). I sold at $248. It is now $10 higher. Time to trade, I would say.