Jim Armitage: Scandals notwithstanding, something tells me Serco's down but not out
Outlook Serco's shares might finally have fallen too far. Yesterday's 17 per cent slide in the stock of arguably Britain's least favourite company takes its plunge since the summer to nearly 40 per cent.
I know this is a business under no fewer than seven investigations into its operation of Government contracts. And, as I've written many times here before, the way it has thrived through the devotion of the current (and previous) administration to privatisations of everything that moves is unpalatable.
But this kind of a share price wipeout is the sort of thing you see when companies are heading to the wall. Despite yesterday's statement, Serco doesn't seem to me to be going that way. There is little sign that the fanatical obsession this country has with outsourcing will be ditched, whatever government gets into power at the next election. Serco remains one of the biggest companies in that business in the world.
You may feel as much antipathy towards Serco as I do, but if you don't mind holding your nose and taking a bit of a risky punt, this one looks like a buying opportunity. If you can't beat 'em, join 'em.
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