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.
I took the opportunity to short a few Mitie (LON:MTO) at 175p. They are next for the chop.
Beximco Pharma (LON:BXP) reported yesterday and it remains on course. Roughly speaking it is on a PE ratio of 10 as against a growth rate of the order of 15%+. This is very cheap even after deducting for political risk. (I am not sure what that deduction is.)
I cannot see why this company cannot go on expanding for many years to come. Now 60p.
Finally, REA (LON:RE.) gave a trading update this morning and will report for 2017 at the back end of April. I think it is an encouraging outlook. However, curiously, the stock remains at less than 350p to buy. The market has got this wrong.