serco were winning contracts thick and thin with little competition .they were able to still bid relatively low on the assumption that having a huge monopoly would cover small random losses around other contracts .This was like a proverbial bubble...growing fast and making vast money from local authorities and government contracts one after the other...by the time serious problems came to light their domain came crashing like a pack of cards..losing contracts...losing public trust ..share price collapsed from a high £ 7 and now teetering about the £1 mark..the prediction is that there will be no dividend for a few yrs possibly..my opinion this companies share price will drop further..no dividend no point..avoid..expect more contract losses..
Bothy your views are irrelevant to value as you didn't matter. But other views are interesting. I've taken a full position today at 118p as I think the valuation looks ok, balance sheet is alright and Soames is excellent. Think current intrinsic value is around 175p. But decent upside beyond that.
Thx Isamboi ... taken half position ... Exactly what i was saying earlier insight such as yours is invaluable... We know its not going to happen overnight but your comments indicate that they may be on the right road. The risk reward is so favourable ...
I used to work for Serco until late last year but left to have a go at contracting. I agree a little with Bothyboy's sentiment. But there are some phenomenally talented people working from Junior management through to Senior management. The company was undone by trying to get away from core competencies, which is now the manifesto once again.
The share price was killed by poor and over ambitious decision making from the Board. But these have been removed and the cream of talent left will rise to the top.
Mr Soames is the perfect leader to restore past performance. Speaking with old colleagues, morale is rising slowly and the fun is back in bidding for work.
I have been watching closely here for a year and will take a position in the next couple of weeks because I believe the bottom has been reached and SRP will steadily rise again.
As a side note, Guardian long reads (and the podcast version) have a terrific feature on Serco/Rupert Soames.... which is well worth a read/listen.
Parkside 13 ...Go be a teacher somewhere else... I 'm interested in information which can assist in my trading / investment ideas... an employees view can be invaluable ... Get off your high horse and write something of value rather than make abusive comments to someone whom i'm sure has posted with all good intentions. Thanks Bothyboy I was close to taking a position but your insight has put that on hold.
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