Royal Mail Share Discussion Threads

[encarter] 19/11/2018 16:51

Still sinking. Now at an all time low. £2.49 will be the bottom imho.

[gaffer73] 19/11/2018 16:25

I don't think progressive dividend policy means stopping it.

[porsche1945] 19/11/2018 12:56

Unions are too strong in RMG, any time they need to push it they will threaten xmas strikes, pension liabilities, declning outdated labour intensive business model, political football, this must be in Woodfords portfolio, ticks every negative capital destructive box. These are not worth the risk for a soon to be vanidhing dividend.

[muffinhead] 19/11/2018 10:43

Rico started GLS from nothing and now turns over £1400 million

[muffinhead] 19/11/2018 10:38

I like Rico. He is a cool guy. He started GLS a long time ago before RMG took the company over. Cool guy!

[muffinhead] 19/11/2018 10:35

Rico did say at H1 webcast that efficiency gains were not enough. £100 million is expected this financial year but rising costs mean 9% price rises for business customers starting from Jan 2019. This necessary to address "living wage" and other costs like fuel.

Divi of 8p in two weeks

[careful] 19/11/2018 10:27

despite everything topped up today.

A £10bn turnover, someone will have to sort this out.
Strong balance sheet, good cash flow, little debt.

..longer term, my view is that Corbyn will never happen, RMG must change to survive.

I will hold these long term now.
go down with the ship etc.

[meijiman] 19/11/2018 09:17

Yes timing is all....she got a damehood? and big dosh ..in reality she was pretty useless. Left all the problems for the new guy. He doesn't tick any pc correctness boxes so will not be down for a knighthood.

[careful] 19/11/2018 09:09

The universal service agreement demands that RMG delivers to every door in the UK.
That includes remote hill farms and quiet villages.
A huge obligation that costs.
Also the Unions are so strong that the business cannot rightsize itself to survive.
Turnover is still above £10bn but this is not enough to cover their bloated overheads.

A potentially strong business that requires drastic surgery.
An amazing collapse from £6.30 to just over £3 over the last few months.

Moya Green deceived us all with her final update, she has left a total mess, conceding everything the unions wanted and more beside to keep the peace, then quitting.

[stevenrevell] 19/11/2018 07:48

Divi cut cumin

[muffinhead] 19/11/2018 01:53

lefrene
Sorry to hear about your personal issues
If you feel that way, find another job to suit your talents


doberman
nationalisation is not that easy and I am not sure why government would want exposure to an annual declining 4 to 6% in letters. Labour politicians do use smartphones to communicate! However Labour may want to beef up Ofcom to ensure aunty Nora gets her birthday card. But the stamp will be £1 or £2 or maybe £3 when aunty Nora is pushing up flowers. It might be cheaper for Mr Corbyn to just buy a smartphone for aunty Nora

nationalisation would cost taxpayers bigtime!!



Why would any politician want Royal Mail back in government ownership? There is no political or social need. My town of 300k people is having it's main post office moved into WHSmith soon. In 20 years time, a stamp will disappear due to technology, just like the CD disc or yellow pages. All that politicians can do is slow down change. Time to move on!

The future is parcels and with the decline of the high street, couriers are the new distribtion infrastruture to replace the high street in the internet age. Internet shopping CANNOT happen without couriers and at present Royal Mail has 47% of the UK parcels market

[lefrene] 18/11/2018 13:40

RM suffers from a civil service culture, it does not have a focused commercial culture that rewards initiative. There's more greasy pole mileage in back stabbing colleagues for infringements of petty rules, than in observing, measuring, and changing the wastage that can be seen in the transport operations.

[muffinhead] 17/11/2018 16:03

FTSE250 index is more Uk company focused. It has outperformed the FTSE100 by a country mile for years.

Capital markets day is also a positive. It is an event tailored for investors to provide a full review of the company's strategy, operations and financial targets. All useful stuff for potential new investors.

Current market capitalisation of only £3.16 billion with £10 billion annual turnover, No balance sheet debt to speak of and equity of about £4.20 per share. No other company could create from scratch what Royal Mail has and the company is organically evolving with it's market. A capital market day may be just what the doctor ordered and if the typically short sighted city does not bite, expect a takeover approach

[muffinhead] 17/11/2018 15:30

Parcels now makes up 61% of group turnover

RMG has 47% Uk market parcel share


Black Friday sales have started early.....

Clicks poised to outshine bricks as spending climbs to a new record



Interesting to review the Q&A from the H1 webcast... specifically the Q&A at 34 to 38mins about 9% price increase for business to recover costs, an issue affecting the whole sector in uk/euro/america. The increase will take effect from Jan 2019.

[encarter] 17/11/2018 15:19

They are hosting a capital markets day in March which could be the start of a fund raise. That's the point of listing on the stock market, free money.

[gaffer73] 16/11/2018 22:31

Action over the last few days would suggest they have already done it!

[bartram] 16/11/2018 21:45

Don't forget RM will be dropping out of FTSE100 in December (currently ranked about 125th). Fund managers with FTSE tracking portfolios will offload.

[gaffer73] 16/11/2018 19:58

Where does it mention a fund raise? I would doubt they need to with £550m profit. £50m fine is possible but unlikely considering the facts. Increase in dividend and busy period approaching should see a rise from these levels imo.

[encarter] 16/11/2018 18:10

Postie's working week going down from 39 to 35 hours and a pay rise. Possible fund raise in March. £50m fine from ofcom and an election looming which could let Corbin in to renationalise them. RMGs future is looking black.

[gaffer73] 16/11/2018 16:05

That's why he's dressed in red ;)

[ccraig69] 16/11/2018 14:55

I would pay more if I did not have to be in to receive a parcel.