algardish
15 Sep 2017
The wild west of investing- Support Services incl Serco So we have had Interserve collapse by 50% , Carillion collapse by a lot, Mitie a rollercoaster and Serco stuck where it is. Mr Soames tells us that he has wafer thin Margins (repeatedly), they all do in support services , not surprisingly. Wafer Thin Margins means wafer thin profits means wafer thin balance sheet which means wafer thin valuation. There's is no escaping it, the share price is going nowhere. The accountants (FD's) fiddle with the revenue recognition and over declare profits then sell their shares, then announce a profit warning . They are all doing it or have done it. Building up intangibles in the balance sheet then writing them down once they have taken their profits. Its time Mr Soames stopped wasting his time and investors money and got himself into something with better margins. He has made a big mistake pinning his career on this and sticking with it. I don't think he will be there much longer, as he has given himself mission impossible. Making money out the Government is not easy. Anyone for Mr Corbyn as PM?!
nk1999
01 Sep 2017
UBS view From ADVFN:"Serco surged on Thursday after UBS upgraded its stance on the stock as it said it was turning positive on the UK outsourcing sector following a 50% underperformance since 2013.UBS said 2018 is likely to be "a major inflection point", with growing earnings momentum expected to drive a recovery."After companies spent five years on cultural transformation, 2018 could see the start of a multi-year structural, but disciplined, expansion in outsourcing. This recovery story is priced in to differing degrees and so we are selective: we upgrade Serco to buy as our key way to play this theme," it said.Serco was bumped up from 'neutral', with the price target lifted to 145p from 125p, as UBS downgraded G4S to 'neutral' from 'buy', cutting the price target to 300p from 355p.The bank said it sees an attractive risk/reward in Serco, with a strong sales pipeline and margin recovery secure. "Execution on turnarounds can drive a sustainable profit recovery that is not priced in at current valuations," it said."
IAmShareCrazy
31 Aug 2017
Re: Re:Leap And MACD crossing
IAmShareCrazy
31 Aug 2017
Re: Re:Leap Could be a short term bounce. Look for it to clear the 200 day moving average. No volume in this move.
decpos2
31 Aug 2017
Re:Leap upgrade by bank UBS to buy
Dubliner2
31 Aug 2017
Why the 7% leap ? Any idea please ??
II Editor
15 Jun 2017
NEW ARTICLE: An 'uninspiring' stock about to enter a growth cycle? "Serco (LSE:SRP)With both grand-daughters "enjoying" their obligatory bout of childhood Chicken Pox, it was easy to find inspiration for LSE:SRP:Serco due to our habit of circling manipulation drops with red circles.Perhaps that's why Serco has ..."[link]
II Editor
14 Jun 2017
NEW ARTICLE: Trends and Targets for 15/06/2017 " SERCO GROUP (LSE:SRP) With both grand-daughters "enjoying" their obligatory bout of childhood Chicken Pox, it was easy to find inspiration for Serco due to our habit of circling manipulation drops with red circles. Perhaps that's why Serco ..."[link]
Hyperproject
31 Mar 2017
Re: 23/02/17 Relax, have a cigar...around a year ago I posted here that they would drop to below £1, they went down to 70p, that was time to buy bucket loads. Don't worry, Serco will get to £3+ in 18 months time, therefore today's price is a good buy. 13/02/17
Nice to Michu
31 Mar 2017
I like this stock at this price Barclays say buy today too I see.Like a super tanker ship Serco is turning itself - around - slowly but surely.Also it has a decent Balance Sheet including a nice pile of cash in hand.. and has a pipeline of potential big contracts that its hoping/looking to get over the line incrementally into the future I have a very small position here currently and may add some more soon
Thedarkkn1ght
17 Mar 2017
Serco secures large contract win £1.6Bn Serco Plc (SRP.L) has been named preferred bidder for a 20-year contract worth about A$2.6 billion (1.6 billion pounds) to operate what will be Australia's largest correctional facility, the British outsourcing firm said on Thursday.This is the group's largest contract win since 2012 and is one of six "elephants" sitting within Serco's bid pipeline," said Jefferies analyst Kean Marden, who holds a "buy" rating on the stock.[link]
Thedarkkn1ght
03 Mar 2017
Jefferies 168 Target Serco Group plc (SRP) Receives Buy Rating from Jefferies Group LLCJefferies Group LLC restated their buy rating on shares of Serco Group plc (LON:SRP) in a research report released on Friday morning. The firm currently has a GBX 168 ($2.09) target price on the stock.Serco Group plc currently has a consensus rating of Hold and a consensus target price of GBX 134.33 ($1.67)[link]
Thedarkkn1ght
28 Feb 2017
SP fall overdone IMO Results were pretty much in line with guidance and much improved from the previous year.Return to profit, Low debt, Cash at hand of £180M, assets close to £2Bn and prospect of dividend being resumed should mean a rise back to 150p+
megaloss
24 Feb 2017
Re: Soames - truthful but making errors I'm not sure I go along with "wild swings to loss when revenues drop" as I don't think this is the nature of the support services sector at all. Nearly all the cost components (including TUPE details if applicable) are known about at the point of bid. I don't think very much of this is pure high-risk P&L at all. Which is why the margins are so low.The sector is suffering from the fall in popularity of PFA/PPI contracts where the Government was able to shift a major part of its public balance sheet to the private sector for a period of decades, voters not being smart enough to understand the complexities, and contracting companies had plenty of leeway to smoke up (i.e. tell lies) about their future income streams. Both parties have been found out now and lots of Serco's competitors (MITIE et al..) have been suffering as well. But there are not that many companies in the game, they can't afford to "buy" new contracts any more by contracting at unrealistic margins, and the public sector is going to have to get used to paying more because they won't have any alternative. SERCO has been around a long, long, time and over the next few years (not now!) the share price may start to fly iMO....Here's hoping!
Hardboy
23 Feb 2017
Re: Soames - truthful but making errors Algardish,"Add to that Brexit uncertainty,(no immigrants to recruit) "And far more work for border control agencies.
