At this stage nobody knows how much wreckage will emerge from the liquidation of Carillion (LON:CLLN). But far-sighted hedgies are looking at what could go on at Capita (LON:CPI). Here, at 397p, CPI is capitalised at £2,650 million as against tangible net liabilities of £3,200 million. This is too much of a gap and, were it to emerge that CPI has been signing up long-term contracts which, in reality, are not as profitable as the market supposes, there could be an almighty crash. Certainly, CPI cannot be regarded as investment grade material until the rubble and smoke attending CLLN has cleared. That will not be soon.
by Nick Sudbury | Funds|2 mins. to read With the world's central banks starting to reduce liquidity, this poses a major challenge for fund investors who want to protect their portfolios.
Master Investor's Swen Lorenz is moderating a live webcast tomorrow. Check out the SyndicateRoom live pitching event at 19:00 on 18 January. Tune in to SR Live to watch pitching companies and an exclusive interview with the Investment Analyst team. Capital at risk.
Material contained within Master Investor Magazine and its website is for general information purposes only and is not intended to be relied upon by individual readers in making (or refraining from making) any specific investment decisions. Master Investor Ltd. does not accept any liability for any losses suffered by any user as a result or any such decision.
Ingen kommentarer:
Send en kommentar