Capita as a business has some questionable fundamentals, however, these are mostly due to their restructuring debts.
They have recently taken on a contract with Google & Microsoft and with their restructuring plans now coming to the fore, they are primed to push higher being undervalued at present.
Capita has already broken resistance which sat around .43 and gained 20%+ on Friday, today's gain were around 14% until a sell off.
I would be taking profits up to .70 but can see this running to .80 in the next month.
Ah i have mixed feelings about this one. It has promise but they seem to get setback after setback! Have you bought in?
Givingitago
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Are you expecting another test of resistance as confirmation?
BH42
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@Givingitago, I would say the buy up after the early morning dump is enough for confirmation now. 8% down at 9am ish and finished in the green, would give me confidence that there are some fairly heavy buys coming in for this.
Givingitago
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@BH42, what's your view on this now? Any chance of updated chart? Thanks
BH42
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@Givingitago, No real update, we are certainly at the mercy of this weeks news and covid second wave (USA). Still have strong support, so happy at present. As mentioned before this trade was a longer term hold and initial plans were to sell after 4 weeks. This may now be pushed to 6 or maybe even 8 weeks to achieve our target profits.
Givingitago
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@BH42, starting to look like a very good shout. Some great news for them this week with the new contracts and now with the disposals strengthening their balance sheet considerably. Hopefully see a good rise there next week!
BH42
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@Givingitago, HI. Yes some great news last week and some big buys of £7M and £8M Thurs & Friday so looks like the bigger players are taking stakes. AGM this week will be key so fingers crossed we get some good news re balance sheet, contracts and strategy for 2020 onwards. Providing a good AGM and no second wave dragging the markets down, i would hope to see 70 within the next 2 weeks. Short term target for taking profit remains at 70 potentially up to 78 depending on the strength of the rally
Shanayamody
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@BH42, do you think the rally is intact and the current drop is a good buy opportunity?
BH42
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@Shanayamody, I believe Capita will hit 70 at some point soon, yes. However, I would be cautious right now with covid cases on the rise across America. In the short term I can see a pullback until we get some brighter news. I am currently 100% cash across my portfolio until i see more clarity within the markets.