Royal Mail Share Discussion Threads

[grahamite2] 13/2/2019 21:03

I'm back in. For good or ill!

[mjones727] 13/2/2019 19:29

wipo1

Just as I said big pricing pressure in parcels and RM very expensive.

Most parcels are sent by individuals.

[muffinhead] 13/2/2019 19:03

Bigger businesses can negociate volume discounts

[muffinhead] 13/2/2019 18:44

10kg parcel dropped at post office

[wipo1] 13/2/2019 18:26

Last week I posted a 10kg medium parcel with hermes £6.50, Royal mail cheapest online price £16.62 parcel force 48 more or less the same price, eBay only allowed me to charge a maximum £9.50 postage.Standard second class in post office was £20.25 what a rip off So therefore it was not viable to use Royal mail due to the low value of the item!

[muffinhead] 13/2/2019 17:14

2019 prices for business mail


From 2 January 2019
"We know how challenging it is for many companies in the current economic environment, so we have thought long and hard about our price changes. We are committed to keeping prices as competitive as possible against a backdrop of rising UK inflation and an ongoing structural decline in letter volumes."

last years CWU negociation costs starting to feed through...it is what it is, put the prices up


Our new prices*

Royal Mail Advertising Mail® will increase on average by 3.0%
Royal Mail Business Mail® will increase on average 6.5%
Royal Mail Publishing Mail® will increase on average by 8.9%
Response Services will increase on average by 6.9%

[mjones727] 13/2/2019 15:36

margins on parcels is under severe pressure and will not make up for the 6-8% collapse in letters every year.

[datait] 13/2/2019 15:34

Even if letters have dropped packets are rises sharply and they cost more so I see a great profit to be made.

I worked there for 25yrs letters was always going to fall but the packets keep increasing massively.

[mjones727] 13/2/2019 15:01

I expect a massive divi cut if not cancelled altogether.

Questor have advised RM as a buy at over 600p in the past.

They are turnips.

Given RM's gross inefficiencies in the work place (I speak from very recent mail centre experience) and zero productivy gains nobody will takeover RM.

Also the company is heavily unionised.

[mjones727] 13/2/2019 14:02

Profits this year expected to be £525 million ish.

A couple of years from now I envisage £300 million tops.

[gaffer73] 13/2/2019 13:47

Ha ha, and the end of the world.

[mjones727] 13/2/2019 12:41

yes it could

along with another profit warning

[gaffer73] 13/2/2019 11:04

I don't think a divi cut will cause a 60% drop.

[mjones727] 13/2/2019 10:52

Not all in the City have priced in a divi cut and it depends on its severity.

RM is in terminal decline.

A divi cut has to happen.

[grahamite2] 13/2/2019 10:50

You've just wrecked your own bear case mjones. If the City expects a dividend cut and the shares have slumped on that basis, a cut is priced in and there is no reason to expect further collapse.

[mjones727] 13/2/2019 10:42

The city expects a divi cut.

Shares have slumped on this expectation.

[mjones727] 13/2/2019 09:21

When divi gets cut I expect sub 100p

[andyadvfn1] 13/2/2019 08:33

I took a punt last week, just a small one mindst. Gut feeling there's more likely upside than down from here.

[grahamite2] 13/2/2019 06:15

Broker consensus is still negative but 2 of 10 firms rate it a strong buy (none rate it just a buy).

I think I see where those 2 are coming from. From these in-the-toilet levels even a dead cat bounce could produce a big gain. I'm thinking about a punt.

[sanks] 07/2/2019 13:37

My nob is safe pal, been keeping it financially happy window shopping in Amsterdam..which releases the stress hence a clear mind when trading.

hope this financial shaggers summary helps
sanksalot