yes.hoping break of 140 level next week after forecast interims at least "a little better" are absorbed by the market and buy orders are placed by the institutions. looks like slow & steady progress candidate. AIMHO.
Is Serco 12-year low a major buying signal?: Outsourcing group Serco saw its shares soar more than 8% higher yesterday after touching a 12-year low at the end of last week, so is now the time to buy? When Mr Soames took control, he issued a “bring out your dead” call for management to review all the troubled contracts, which led to an annual pretax loss of £1.35 billion. Serco acquired Indian-outsourced accountant and call centre business Intelenet in 2011 in an attempt to diversify away from its core U.K. defence market and into the emerging markets private sector. The company paid a premium, splashing out up to $630 million (£385 million) to buy the business from private equity Owner Blackstone. Serco’s shares have tumbled from a peak of 558p in July 2013 to just 117p on Friday last week, in the process dumping the company out of the FTSE 100 index. The shares also pay no dividend and debts will continue to rise even though the rescue rights issue went some way to plugging the gaps. The cash raised from selling the Intelenet business would have been useful so any cut-price deal would be a blow. We said Serco was a “classic falling knife share” at 362p in July last year, and reiterated our advice to avoid the shares at 183.7p on March 12. We need to see some more stable profit figures before changing our view. Serco at 133.3p +9.8p. Questor Says “Avoid”.
The Ministry of Defence has asked some of Britain’s biggest companies to bid to run the military’s fire and rescue services, in a move that would hand billions of pounds of work to the private sector in a search for savings. SERCO are one of the companies bidding. They already have firefighters working for the military and own a firefighter training school which the Secretary of State for defence visited in March, Rupert Soames was there to show the defence minister around the international fire training centre. Hopefully SERCO can bag this contract.
Hoping recovery towards 150+ after it was pulled down last fortnight. Next update 2 July. It is well known that past results would be less than cheerful but the board would emphasise the progress going forward. Their FD recently had a dinner meeting with the analysts. So there won't be any shocks. Good volume today; looks like sustained buying by those in the know.
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