Let us see how the market reacts to this morning's RNS on BPO sale, which is supposedly earnings neutral but debt-reducing when taken together with other things. Soames keeping to his word and executing another step in the strategy towards SRP focusing on public sector exclusively.
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.
Datafeed and UK data supplied by NBTrader and Digital Look.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.