Serco Share Discussion Threads

[alphahunter] 21/11/2014 08:50

PE Over 9, so a long way to fall????
You only buy on 5x PE?

Nah, it's over 20x PE post-dilution says the Swissies.
I might reconsider my position, with a 5%-GSL offered by IG.

[mallorca 9] 21/11/2014 08:34

PE still over 9 .. so a long way to fall yet.

[alphahunter] 20/11/2014 16:32

Well, I'm closing the short position at ~180p - bar a tiny weeny holding just to get access to the live price of the forthcoming rights on the web platform.
I just didn't like the way the share behaved today - gut feeling that there is some news coming up soon and don;t want to be on the wrong side of a stock with 15% on borrow -.

[deanroberthunt] 20/11/2014 13:29

if you're into elliot waves, the usual rule of thumb is 5....this looks like the fifth.....fwiw

[deanroberthunt] 20/11/2014 13:22

it's now at the bottom of the falling channel.....fwiw

[alphahunter] 20/11/2014 12:37

Hi Dean, but that was announced on 10th - and the following six or seven days we got the daily rewarding 1-2% downdrift. Why -7% today in a rush?

The only thing I can see is that HSBC downgraded to 170p, but it's not as if this is a difficult business to understand and value. The timeline for disposals is may be being delayed.

FWIW, borrowed shares = 15%, need to raise up to 50% of existing capital.

[hvs] 20/11/2014 12:33

non-core asset disposals.

Does they have any ?

What is the CORE then ?

They has LOADS of employees and PENSION DEFICIT GROWING.

[bobsidian] 20/11/2014 12:03

In the strategy update indication was already given that the rights issue was to be underwritten with the intended underwriters being cited.

Management may have delayed the issue pending confirmation on anticipated net proceeds from non-core asset disposals.

We have seen it time and again. Delay in the conducting of a necessary rights issue much more often than not gives rise to an adverse impact on the share price.

[essentialinvestor] 20/11/2014 11:44

bob, why do you think that is?, it needs to be underwritten surely and they will
most likely need to provide further financial information.

It's not a good sign, all just IMV only, dyor as always.

[bobsidian] 20/11/2014 11:33

Silliness to be delaying the rights issue to an indeterminate date in the first quarter of 2015. In the absence of any positive news flow, a sure fire short selling target as every significant shareholder has probably already made a move to hedge their existing holdings. Natural downside to at least £1.10.

[deanroberthunt] 20/11/2014 10:21

heavily discounted rights issue mate, plus a dire profit warning....

[alphahunter] 20/11/2014 10:11

Hi,

Why the sharp fall today?

[deanroberthunt] 20/11/2014 10:10

next support is 100p....

so a rights issue and the dividend must be cut.....

[mallorca 9] 19/11/2014 16:06

I fear this may open sub £1.70 tomorrow.

[hvs] 19/11/2014 15:15

The Rights money should help to pay BONUSES and PENSION TOP UPS.

Its the CITY WAY.

[deanroberthunt] 19/11/2014 15:12

anyway it's simples, 550m rights, do the math, current mcap is only a tad over 1bn,,,and falling

[hvs] 19/11/2014 14:48

lol !!!!!!!

Rupert with the MADE IN THE CITY MAGIC WAND.

[tompion] 19/11/2014 14:46

At some stage these will be good value for a recovery - have a lot of respect for Rupert Soames. Give him time to sort out the mess and then time to buy. Not yet though.

[deanroberthunt] 19/11/2014 14:42

have to go back a long time to see these lows.....

[deanroberthunt] 19/11/2014 14:37

HVS

indubitably, rights at double digit share price imvho

[mallorca 9] 19/11/2014 14:17

Freefall !
May be marked way down at tomorrows open.

[mallorca 9] 19/11/2014 14:15

Sorry to say that I see this falling to sub £1.50.

[hvs] 19/11/2014 13:43

Deeply discounted rights issue looming.

Thats how the CITY works.

Ask Nat Rothschild.

[deanroberthunt] 19/11/2014 11:45

next leg down, might be worth a punt around £300-400m mcap.

[mallorca 9] 19/11/2014 10:50

Looking as if this could freefall :-(