Yes, it’s that bad

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1 mins. to read
Yes, it’s that bad

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.

Comments (2)

  • Giles osborn says:

    On BXP we had an ordinary and a script dividend,have now lost the latter?giles osborn

  • Surinder DB says:

    Should we be “shooting”…oops I meant shorting other zombie corporations like Babcock. Serco etc..arising from grotesque graveyard known as the PFI sector?

    Thank you Mr Cawkwell for not only entertaining me in style of writing that I enjoy, but also for the amazing value you freely put out to fellow investors on a very regular basis!

    Currently Natural Gas is in some corrective phase but with bright prospects ahead.. so have been looking at Aminex (LSE:AEX) as a proxy for the play…is it on your radar?

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