Royal Mail Share Discussion Threads

[death by donut] 13/1/2017 17:58

Well , bought back in here for the yield , nowhere else to put me cash tbh.

DbD

[philanderer] 06/1/2017 12:40

3 income stocks I’d buy in January


Royal returns

You aren’t paying over the odds for the income stream from Royal Mail (LSE: RMG) either, with the company trading at 11.05 earnings. Its share price is down 6% in the past three months, which gives you a squeak of a buying opportunity. This could be a little risky as we haven’t yet heard how the group did over the crucial festive period, but income machines like this one aren’t just for Christmas.

I don’t foresee much share price growth as Royal Mail may struggle to make headway in the key UK parcels market, while Brexit could threaten growth plans in continental Europe, where it recently posted double-digit growth. However, it’s one of the most solid dividend payers on the FTSE 100, currently yielding 4.83%, covered 1.9 times. Royal Mail’s UK dominance – where it boasts more than 50% of the market – healthy balance sheet and lucrative London property portfolio should ensure the income deliveries get through

[wipo1] 14/12/2016 10:01

Phew glad I sold at 494.5p, on the day I sold I remember the dealers had shut off trade for 20 minutes and I could only route to dealer, I waited though and sold normally. I think Xmas will be poor if my eBay sales are anything to go by.Looking to rebuy 420p.

[arnu gutierrez] 10/12/2016 02:33

Potential reaction of Royal Mail (RMG) to analysts' perspective on its stock

[deadly] 08/12/2016 11:20

Drop today due to 7.4p XD, so recovering well.

[philanderer] 02/12/2016 18:19

Questor: Buy Royal Mail (the market's got it wrong)

[gswredland] 23/11/2016 18:06

Me too! On my watchlist

[mbmiah] 23/11/2016 10:05

I'd buy in at 420

[tonio] 21/11/2016 14:43

Yes ,gilt yields presently are a problem, they have to hold them - the need for a company to provide a pension pot large enough to cope with it's bankruptcy is another problem , particularly if providing it does indeed bankrupt the company - catch 22!
The only way forward for a company is to reduce pensions to employees.

This all seems a bit odd when present employee/company annual contributions easily pay for present pensions - and allow a substantial contribution to the pension pot.

You'd think sense would prevail and some changes to the rules would be forthcoming - you'd think - but what's the chance of that?

All IMHO.

[oiht] 18/11/2016 17:55

However, there is a cunning plan:

Royal Mail is facing a battle with its 140,000 workers after unions threatened a campaign of action against plans to slash pension benefits.

Royal Mail’s plan to switch 90,000 workers out of their current pension arrangements into a new scheme that will pay out lower benefits emerged on Wednesday. If the cuts are similar to plans at the Post Office’s near-identical pension scheme, it could see some workers lose up to half their projected pension.

The Communication Workers Union (CWU), which represents most of Royal Mail’s workforce, said it overwhelmingly rejected the pension changes.

Terry Pullinger, CWU deputy general secretary, said: “It is unfortunate that Royal Mail’s actions have resulted in this issue being in the public domain prior to any formal consultation.

“The CWU do not accept that closure of the Royal Mail Pension Plan is inevitable and will explore every avenue to defend it. We will challenge any convenient leap by the employer to close the scheme and move the entire onus on to our members.”

Royal Mail said the cost of its pension scheme will balloon from £400m to £900m a year unless it cuts the scheme. It wants to prevent workers from building up any future entitlement to the current career average-based pension scheme, and switch them to a pension where the outcome is entirely dependent on stockmarket movements.

Pullinger added: “It is very concerning that the recent press articles, which have prompted this statement, give an impression of fait accompli. Royal Mail will need to bring far more imagination into these ongoing discussions and should be in no doubt that the CWU will use every means at our disposal to encourage the company to think again and secure an agreement that defends our members’ incomes and dignity in retirement.”

Royal Mail said an existing agreement runs out in March 2018 and it welcomed talks. In a statement it said: “We are committed to constructive, ongoing talks with our unions about the future of the plan after March 2018.”

The CWU is already engaged in a battle with the Post Office, which split from Royal Mail on privatisation in 2012, over changes to its pension scheme. It called a strike ballot over changes to the Post Office pension, and other working arrangements at crown post offices, and said it expects a resounding vote in favour of action.

...But it's not unique to RM's pension scheme:

Severe cracks are appearing in many final salary-style pension schemes because what appear to be esoteric movements in gilt yields – interest paid on government bonds – are having a dramatic impact on the financial viability of pensions.

Since the EU referendum result, gilt yields have plummeted to historic lows, with interest rates on some government bonds turning negative.

This hits pension funds, as gilt yields are a major component in valuing the future liabilities of a scheme. Each time yields fall, the gap between assets and liabilities grows, throwing many schemes into deficit.

Figures earlier this week from the Pension Protection Fund revealed that the total deficit at nearly 6,000 of the UK’s biggest company pension schemes had widened by more than £24bn in a month to reach a new high of £408bn.

...My former company's pension scheme was closed to new members a few years ago and has even more recently, closed altogether and members moved into a new, inferior money purchase scheme. Tough, but that's the way it is.

[joe say] 17/11/2016 14:47

Royal Mail Pension Plan (RMPP)

The triennial valuation of RMPP at 31 March 2015 is still in progress. However, based on a set of assumptions which we believe are likely to form the basis for the March 2015 valuation, the RMPP actuarial surplus at 30 September 2016 was estimated to be £1,575 million,comprising of assets of £9,583 million and liabilities of £8,008 million (31 March 2016 £1,765 million).

Based on this set of assumptions,the cost of the benefits being accrued each year, based on market conditions at the end of September 2016, would currently be around £1.4 billion. This is significantly greater than the total annual contributions of around £500 million that the Company and employees make.

Accordingly, we expect that the actuarial funding surplus will be exhausted during 2018.

After this time, the annual cost would be more than double the current contributions, which, as we pointed out to Plan members in a letter we sent in June 2016, is unaffordable for the Company.

[mbmiah] 17/11/2016 13:27

Read the online news boys - pension is a problem. These could see low 400 IMO

[careful] 17/11/2016 12:40

not mentioned in half year results.
should be.
with gilt yields on the rise maybe these deficits will reduce from now on.

[joe say] 17/11/2016 12:33

Not all of it - take a read of the results and it will highlight the potential massive increase in RM contributions

[careful] 17/11/2016 09:59

What is the pension issue?
I thought that was off loaded to HMG before privatisation.

[careful] 17/11/2016 09:29

quiet here today.
int divi up almost 6%, earnings ahead.

not delved deeper into this although the market reaction is very negative for a company trading on a pe of 11 and a yield of about 5%.
Maybe competition fears, we all have to see if the opposition can do any better .

[careful] 17/11/2016 08:03

results look steady.
eps up.
int divi up from 7 to 7.4p.

[freddie ferret] 12/10/2016 17:28

UK Mail takeover is holding this back.

[2acorn] 05/10/2016 07:20

Agree Space

[spacecake] 04/10/2016 19:41

I still see this as a good buy oppo, even more so after today's announcement that it will purchase GSO.

[exotic] 04/10/2016 11:51

Royal Mail acquires debt-free GSO, which makes more than a million deliveries each month throughout California, Arizona, Nevada and New Mexico. GSO generated revenue of approximately $114 million last year. The transaction will have paid for itself by 2019-20.

[wipo1] 29/9/2016 16:36

I think you've better waiting to see if 470p holds and wait for positive trading statement before buying.