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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Sureserve - Agrees take-over: gain to date +47%

June 2023

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • SUR
  • Price:
  • 125p
The shares soared after Sureserve received a take-over from Cap10, a mid market European private equity firm, worth 125p a share, a 39% premium to the previous day’s close and 18% above its all-time closing high back in June 2015. Cap10 has received irrevocable undertakings from almost 24% of the shares. A main write-up at 85p in March ‘22, the gain is now 47%, but I think the implied PE of less than 15  is mean given Sureserve achieved a 13% profit forecast upgrade and 18% order book increase (covering 80% forecast revenues) earlier this year and has a successful acquisition record. There’s still time for a counter offer; I will await developments. ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X

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