Serco Share Discussion Threads

[alphahunter] 03/7/2014 10:16

I can't comprehend the risk-adjusted valuation here.

[hvs] 03/7/2014 07:45

Oh Dear , Oh Dear,

Rupert where is your MAGIC WAND ?

As set out in detail in the IMS at the end of April, margins in the first half will be significantly lower than the comparable period last year. Over GBP2bn of contracts have been awarded during the period (Is they all loss making as well ) ?

I mean SIGNIFICANTLY ?

lol !!!!!

lol !!!!!!!

[alphahunter] 18/6/2014 19:56

11 million shares changed hands today, 2% of share capital.

[tompion] 18/5/2014 11:17

Mmmm. Another negative story in papers today. Still some way to fall?

[tompion] 09/5/2014 10:52

Still no sign of an entry point. Would like to buy but may have to wait quite some time - looks like considerable further falls likely. Patience!

[hvs] 06/5/2014 11:21

Rupert and his CITY given MAGIC wand ?

Be very careful.

[davethehorse] 02/5/2014 12:55

Looks that way Osi, still a good way of saving though ;-) Shares strong today - the placing went well I have heard, all taken up with institutions which is probably helping the price

[osirisra] 02/5/2014 02:24

Hi Dave,sharesave?!?!?!?!? 512 option prices wasn't it? Der, think I'll be taking the cash.

[buywell2] 01/5/2014 07:09

10% of new shares but most of the existing shareholders will get zippo

clearly 5% would not have been enough for the cash strapped company

Another issue coming soon






What is a cash box placing ?

A A cash box placing allows a company to issue new shares by bypassing pre-emption requirements – meaning without shareholder approval – provided they are issued for a non-cash consideration, such as the shares of another company.

Q How does the structure work?

A The listed company incorporates a new subsidiary to act as the so-called cash box. It will inject cash into the unlisted shell company and then buy that shell, paying with shares priced at whatever level it deems suitable.

Q What are the advantages of using this structure?

A The structure allows companies to raise more money than they might otherwise be allowed in a quick transaction and without seeking shareholder approval, which can be expensive and time-consuming.



Cash box placing

A method of raising cash from the issue of equity securities which is characterised for Companies Act 2006 purposes as an issue for non-cash consideration. A cash box structure allows an issuer to issue new shares under the exception from the pre-emption requirements of section 561 of Companies Act 2006 provided by section 565 of the Act.

It is not a cash issue as the shares are issued in exchange for preference shares in a special purpose subsidiary. The only material asset of the special purpose vehicle is cash, provided on a subscription of shares by an investment bank.

The investment bank is able to finance its commitment to fund the subscription price on the preference shares out of the proceeds of the placing of the company's equity securities.

[dendria] 29/4/2014 16:37

'This may in turn require a material downward revision to expectations, and for us to review the appropriateness of our financing position'.

A chilling statement - good luck to any buyers...

[tompion] 29/4/2014 16:21

Watson - things need to be much clearer to even think of buying - how bad are we talking about - details of the likely rights issue etc. I have faith in Rupert Soames and the company will recover. I am nervous of trying to find the bottom or even buying into an initial bounce. In time we will see a sustained recovery and the chart will help decide if this an entry point.

[watson] 29/4/2014 16:10

I'm inclined to agree Tompion - I have a gift for buying on bad news that then never seems to stop!

I wonder how Warren Buffett manages to pull it off?

[tompion] 29/4/2014 16:01

There will be a time to buy into Serco but not yet - too risky.

[essentialinvestor] 29/4/2014 15:06

bones, I think it would be very difficult to interpret that statement in any
other way so you are spot on imv.

Big dilution now appears to be on the way, the share price IMO is behind the curve,
as has been the case for sometime.

[watson] 29/4/2014 14:48

We're always advised to buy on the bad news and sell when all seems to be going swimmingly.

Difficult to do that isn't it!

Is this one of those wonderful buying opportunities?

[tompion] 29/4/2014 14:48

Rupert - could you please fail to turn up on 1st May and go back to aggreko - thanks old boy.

[bones] 29/4/2014 13:50

I presume that the RNS would be worded as accurately as can be reasonable without sounding alarmist, yet it is easy to imagine the alarm that must be felt internally to warrant an unscheduled RNS such as this. The wording used (and my interpretations in brackets) tell me this:

- It has now become evident in the light of recent performance.... (performing way below "expectations")

- ...we may need to reassess the level of risk...(forecasts too optimistic)

- ...material downward revision to expectations... (substantial reductions in bottom line results)

- ...review the appropriateness of our financing position... (running low on cash for future needs)

- ...consulting with shareholders regarding the possibility of strengthening the balance sheet through an equity placing. (Could be big and very dilutive even at today's prices)

Hard to imagine this will stay above £3 for long at least until the extent of the finance requirement is known.

[davethehorse] 29/4/2014 13:44

Looks to be heading sub 300p for sure, a terrible statement

[sanks] 29/4/2014 13:01

Sheila's knocker meter suggests a possible floor at 29p
Is this target suffice?

[salpara111] 29/4/2014 11:37

Well, if they are going to have to raise cash they will have to stop paying a divi.
Overall this is a big old mess and will take several years to turn around.

[essentialinvestor] 29/4/2014 08:51

What's ridiculous is that the share price has still got a 3 as the first number,
lower levels loom large imv.

[bobsidian] 29/4/2014 08:48

Not the wisest of moves to make comments like "will" discuss with shareholders. Given the fundamentals of SRP uncertainty in the intervening period could take the share price down to even more ridiculous extremes.