Royal Mail shares?

Bit of a weird one for here but there are all sorts on this forum. :astonished:

Now the government has shed loads of jobs and done some cost cutting (and left the taxpayer with a black hole pension fund) the Royal Mail is ready to be privatised.

Is it a ā€œbuy and holdā€, ā€œbuy and sellā€ or leave well alone? :grimacing:

turbot:
Bit of a weird one for here but there are all sorts on this forum. :astonished:

Now the government has shed loads of jobs and done some cost cutting (and left the taxpayer with a black hole pension fund) the Royal Mail is ready to be privatised.

Is it a ā€œbuy and holdā€, ā€œbuy and sellā€ or leave well alone? :grimacing:

I personally wouldnā€™t invest, too many employees, being paid more than the average parcel/delivery employee makes it inefficiant.

Donā€™t know why I put insufficiant lol

If you mean should you buy RM shares thatā€™s up to you, but with the sell off being massively over subscribed, the price of the shares will no doubt hit the top level price of Ā£3.30.
Which means that they`ll be of interest to large corporate investors & pension funds, and when the FTSE100 gets shuffled in December shaking out the names that have become stagnant, its highly likely that with a share price of Ā£3.30 the RM shares will be listed in the FTSE100 from December making them even more desirable to hedge fund & pension fund investors.

Would I invest ā€¦ yes.
Parts of the RM are like the council, in need a shake up, I know too many RM guys who are doing job share, 2-3 days per week etc and drawing a full wage, IMO the business can`t support that kind of work ethics to remain profitable

Talk is at the moment of a quid premium for first day of tradingā€¦ Dunno quite how theyā€™ve worked this out though, unless of course it has been engineered via selling it off a way-too-low a price - which I wouldnā€™t put past this craphouse of a government for a minute! :imp: :imp:

Now, I like trading in shares, Iā€™ve stagged previous privatization issues, and Iā€™ve never voted Labour.

BUTā€¦ I am personally not touching this RM float with a bargepole, because to me, an ex-royal mail bod, the entire notion of fooling around in the market with these shares is like being asked to cross my own workmates picket line whilst at agencyā€¦

ā€œNot gonna happen with meā€ is what Iā€™m saying here. :angry:

RM should have given the entire company up to itā€™s staff at the issue offer price, with the public & institutions only getting whatā€™s left over at first dayā€™s trading price (ie a lot higher!) - a bit like John Lewis, or even Natioal Freight Consortium perhapsā€¦ a measly 2 grand just doesnā€™t make up for being short-changed on pay and conditions for the rest of oneā€™s working life though, and that more than anything is what the actual workforce have got against this float. :wink:

Its about selling what was paid for and built buy all of us to just a few [zb]
The Royal Mail is a massive system that spans the whole of the UK.You think that some jumped up parcel delivery companies like TNT or UK mail are going to want to deliver your letter door to door to Thurso,Stornaway or even Penzance for 60p.And why do you have to buy a minimum of 750 quids worth of shares?
This is a [zb] outrage.A dying capitalist system in its death throes.These scum are selling our childrens future to keep their corrupt system alive.And all the greedy SOBs will be in the shares queue with their 750 quid in their grubby greedy little fists.

Like all previous nationalised industries which are now privatised they where all once owned by every uk citizen and then the government expect the public to pay to own something they already do. Could not make it up but something that many people have fallen for.

Looking back everything that as been privatised we the public havenā€™t got anything to show for it(correction a few spivs city traders stock brokers have)

The latest news on this is: Any person who paid the minimum Ā£750 will get the shares, any company that has said it will pay tens of thousands etc will not

I applied for Ā£5,000ā€™s worth, so Iā€™ll get the Ā£750 minimum allocation, obviously not as much as I would have wanted but Iā€™ll still expect to make Ā£200 or so for five minutes work.

The higher the initial price, the less it will seem worth hanging on to them for the dividend.
330p upto a high of 430p on first day, but where from there? - Eurotunnel did well in itā€™s initial float if memory serves, and then went downhill all the wayā€¦ That was another float with ā– ā– ā– ā– -poor dividend prospects, hence why I make that comparison.

Thereā€™s better places for our limited funds in these 'ard times.
Iā€™ve applied for none, and rest comfortably in the knowledge that Iā€™ll receive it in abundance. :grimacing:

Well, I took a punt.
Well see if its any good. Im hoping for a quick sale by Friday tea time if not before lunch!
I dont reckon its a long term investment, this workforce has a terrible reputation. I just hope the price goes straight up to a decent return when trading starts, then Im out.

cheekymonkey:
Well, I took a punt.
Well see if its any good. Im hoping for a quick sale by Friday tea time if not before lunch!
I dont reckon its a long term investment, this workforce has a terrible reputation. I just hope the price goes straight up to a decent return when trading starts, then Im out.

+1

Well I took a punt too. So we will see. :laughing:

Talk about loyalty, its reported on the radio that of the thousands of PO employees, only 350+ haven`t opted to apply for their ā€œfreeā€ shares, those employees who applied for shares via the Employee Priority Offer will have their applications met up to Ā£10,000 so the employees will make a bigger profit when they sell than the money grabbing institutionsā€¦ rats leaving the sinking ship?

As for those of you ā€œtaking a puntā€ ā€¦ I doubt for those electing to buy the minimum Ā£750 worth, that there will be enough profit to pay for a free weekends beers, then again its free beer :confused:
You really need to have some experience of the stock market, and invest a little more than Ā£750 to make a viable profit, if there is a profit. I estimate that for the min Ā£750 investment, IF you get all your entitlement, but youll only get 227 shares at 3.30 per share, those opting to buy Ā£1K + will only get Ā£750 worth of the shares theyd hope for. Dont forget broker fees to sell are roughly Ā£15 per trade, more Ā£s if you trade less than 12 times a year, again eating into the ā€œprofitā€
Depending IF your prepared to wait Itā€™s obvious to anyone that Royal Mail has been flogged off at least Ā£1b lower than its value.
So the wise ones will hold shares for about a year by which time the froth will have settled and the 6% Dividend paid out. Which based on the minimum allocation of Ā£750 per person, and the indicative full-year dividend of 20p, investors would receive Ā£45 a year in dividend income if they retained their stake. Then sell the shares at a tidy profit before the wheels fall off the wagon.
But I think most will sell their shares asap, taking an estimated Ā£150 profit if the price hits 400p+
But remember, just like gambling on the horses, dont invest money that you are not willing to loose. Its all about percentages, not Ā£s & beating the bank, so keep an eye on the fluctuations on %
The biggest winners are the brokers, who are charging a min of 0.75% of any monies you opt to invest

peirre:
Talk about loyalty, its reported on the radio that of the thousands of PO employees, only 350+ haven`t opted to apply for their ā€œfreeā€ shares, those employees who applied for shares via the Employee Priority Offer will have their applications met up to Ā£10,000 so the employees will make a bigger profit when they sell than the money grabbing institutionsā€¦ rats leaving the sinking ship?

As for those of you ā€œtaking a puntā€ ā€¦ I doubt for those electing to buy the minimum Ā£750 worth, that there will be enough profit to pay for a free weekends beers, then again its free beer :confused:
You really need to have some experience of the stock market, and invest a little more than Ā£750 to make a viable profit, if there is a profit. I estimate that for the min Ā£750 investment, IF you get all your entitlement, but youll only get 227 shares at 3.30 per share, those opting to buy Ā£1K + will only get Ā£750 worth of the shares theyd hope for. Dont forget broker fees to sell are roughly Ā£15 per trade, more Ā£s if you trade less than 12 times a year, again eating into the ā€œprofitā€
Depending IF your prepared to wait Itā€™s obvious to anyone that Royal Mail has been flogged off at least Ā£1b lower than its value.
So the wise ones will hold shares for about a year by which time the froth will have settled and the 6% Dividend paid out. Which based on the minimum allocation of Ā£750 per person, and the indicative full-year dividend of 20p, investors would receive Ā£45 a year in dividend income if they retained their stake. Then sell the shares at a tidy profit before the wheels fall off the wagon.
But I think most will sell their shares asap, taking an estimated Ā£150 profit if the price hits 400p+
But remember, just like gambling on the horses, dont invest money that you are not willing to loose. Its all about percentages, not Ā£s & beating the bank, so keep an eye on the fluctuations on %
The biggest winners are the brokers, who are charging a min of 0.75% of any monies you opt to invest

Well, its about Ā£200 profit. :smiley:

"But I think most will sell their shares asap, taking an estimated Ā£150 profit if the price hits 400p+ " if on your own figures Pierre, theres a Ā£15 trade fee that would still leave Ā£135. That would keep me in beer for a whole year...I dont drink much! But youre right to be cautious in trading stocks. Ive been burned before and said I`d never trade stocks again, but this really was a no brainer.

Shares closed up 38% at 455p, meaning around a Ā£275 gain on a Ā£750 allocation.

Full trading starts on Tuesday and the price might drop then as the masses offload their shares, but should then climb again, Iā€™ll stick my neck out and predict 500p by Christmas.

I wish Iā€™d been granted a larger allocation but at the end of the day, Ā£275 isnā€™t bad considering that buying them took about as long as buying a book from Amazon.

Andy Kershaw said why should we buy something that we already own? He does have a point. :wink:

Wheel Nut:
Andy Kershaw said why should we buy something that we already own? He does have a point. :wink:

You listen to financial advice from Andy Kershaw?

Chas:

Wheel Nut:
Andy Kershaw said why should we buy something that we already own? He does have a point. :wink:

You listen to financial advice from Andy Kershaw?

No I listen to music. I was reading Twitter at the time :laughing:

Harry Monk:
Full trading starts on Tuesday and the price might drop then as the masses offload their shares, but should then climb again.

Some of the masses couldnt trade them yesterday & bet the wish they couldve. They have to wait until Tuesday.
It didnt surprise me that they opened at 459p, but the price took a plunge around 08:30 (the time I got my emails from my brokers) to 420p when the emails went out confirming peoples allocations and higher volumes of share where dumped on the market & then rose 10 mins later to 440p+. It mustve been all those royal mail employees dumping their free shares on the market at once that caused the drop in price :laughing: :laughing: :laughing:
I understand that around 500 RM employees opted to take their full employee allowance of around Ā£10k, they where the only ones who could have 10k, so a nice tidy profit for them if they sold them

Harry Monk:
Iā€™ll stick my neck out and predict 500p by Christmas.

I think your right, I recon theyll hit 510p so theres more profit to be made, but by Christmas theyll also be listed in the FSTE100, and be of interest to pension fund managers, theyre already in the FSTE 250. My gut feeling is that like BT theyll have a honeymoon period of 12-18 months before it starts going downhill, as its such a small allocation, Ill hang onto my allocation(s) and hope there`s more money to be made

Harry Monk:
I wish Iā€™d been granted a larger allocation.

Me too, a couple of grands worth wouldve been better, which is why I opted to buy more that I actually wanted knowing that full allocation wouldn`t be given, but IMO giving everyone Ā£750 was a joke as its obvious that with such a small allocation everyone was going to dump them leaving the big institutions with the bulk, its tempting to watch the price over the next week & see if its worthwhile buying a few more to top up my portfolio to a workable level.

peirre:
It must`ve been all those royal mail employees dumping their free shares on the market at once that caused the drop in price :laughing: :laughing: :laughing:
I understand that around 500 RM employees opted to take their full employee allowance of around Ā£10k, they where the only ones who could have 10k, so a nice tidy profit for them if they sold them

As I understand it (perhaps a RM employee can confirm this ), RM employees donā€™t get allocated their shares until next Tuesday, and donā€™t even know how many shares they will be getting yet as that will be decided by the closing price on Tuesday, also they canā€™t sell them for three years.