Royal Mail Share Discussion Threads

[careful] 30/9/2021 15:14

A panic was created causing a run of fuel.
It could happen any time, a bit like a run on Banks.
Some conspiracy types were saying it was caused deliberately by BP. who wanted visas for EU. drivers. They succeeded.

[angersharkz] 30/9/2021 15:02

There is no shortage of fuel. There is plenty of fuel just a shortage of HGV drivers at present, hard to tell how much of an impact that will have on RMG. Parcel demand has increased in relation to pre pandemic levels as RMG stated in the trading update.

You can continue to read between the lines and I’ll read the factual information, if RMG is causing too much fear for you, move onto something else, it’s a simple solution.

[angersharkz] 30/9/2021 14:16

Chancer - I think RMG went north because the lockdown meant there was an unprecedented demand on parcel delivery service which in turn made them a load of profit.

Coming out of the pandemic there is evidence that demand is rebasing higher than pre pandemic levels and RMG are looking to make in the region of 400m in H1, more than that in H2.

The reason it’s heading south is anyone’s guess? Hysteria and panic probably. I’ll continue to apply logic with the information I have available, the share price is extremely cheap right now

[angersharkz] 30/9/2021 12:17

Yes, it’s pretty crazy really. Ive just bought another load at 428p so I’m pretty pleased with that. Not sure if this will move lower but seemed to find some support at around the 420p mark

[careful] 30/9/2021 12:05

A 27% fall in 3 months is a significant crash by any standards.
No concrete reason that I can see,

[bartyb] 30/9/2021 11:42

Anger Thanks for that.

[angersharkz] 30/9/2021 10:20

Bartyb - HSBC have raised their target price to 730p, so that’s 300p more the UBS! That RNS came out today

[bartyb] 30/9/2021 09:50

UBS is all suppositions of what might happen, nothing concrete.Mind you all the other ratings are some time ago.Could do with some up to date ratings.

[angersharkz] 30/9/2021 09:13

Yes the American markets are crazy at the minute, so many grossly over valued companies. That’s why some are predicting that a possible collapse is around the corner….I̵7;ve been freeing up some cash in my ISA and moving it into my spreadbet account in case I need to go short.

I’m hoping some of the short term noise around RMG will dissipate over the coming weeks and people will start to buy in as the markets start to pick up over the winter. Half year results in November so maybe they’ll give some cash back to shareholders with a tasty interim divi

[careful] 30/9/2021 09:01

There may be increased costs, we expect that.

But last year many senior managers took early retirements on generous packages.
This was expensive and absorbed in last years numbers.
I still expect a solid profit number for this year.
Very cheap at these levels.

What UBS are up to is hard to imagine.
The old mantra of increased costs and increased competition seems feeble.
All baked into todays price.

Some American shares on PE's in the 100's, RMG at below 10.
Crazy not to buy these at todays price.

[angersharkz] 30/9/2021 08:40

Shows how fragile some people’s mentality is, one broker re rates to sell and everyone sells hysterically, 10 others have them as a strong buy and no one bats and eyelid!

[charlie9038] 30/9/2021 08:05

UBS wants to buy, HSBC want to sell!

[angersharkz] 30/9/2021 07:33

HSBC has raised the price target for RMG from 720 to 730…..massive difference to the UBS downgrade.

Analyst ratings are worth noting but doesn’t tell the whole story

[isis] 29/9/2021 16:16

lol

UBS downgrades Royal Mail to 'sell', shares tumble
Wed, 29th Sep 2021 16:08
Royal Mail shares tumbled on Wednesday as UBS downgraded them to 'sell' from 'buy' and cut the price target to 440p from 590p.
The bank said risks to opex were increasing, with potential pricing pressure in UK Parcel. UBS cut its FY22/23 EBIT estimates by 8%/15%, mainly driven by higher costs in the UK business. It now stands 14% below adjusted EBIT FY23 consensus.

"We expect increasing opex costs are coming at a time when the pricing power within the industry is likely to decline as more parcel sortation capacity is added in 2022.

"We expect peak uncertainty around UK parcel volumes in Q4; and wage inflation ahead of the negotiations with CWU," it said, noting that the current agreement ends in March. "In this context, we believe the stock could underperform."

[irenekent] 29/9/2021 16:15

It'll be all the children bailing out.

[careful] 29/9/2021 15:10

quite a fall.
Must be coordinated shorting plus sell note.

They may be corrupt, but they have to eat.

[bartyb] 29/9/2021 13:44

Going down further first

[angersharkz] 29/9/2021 11:36

Yes would not surprise me, I think there will be a lot of people hoovering up the shares sold by people that have been spooked this morning. I’m just annoyed that I bought in yesterday rather than today but you can never know where the bottom will be

[charlie9038] 29/9/2021 11:08

Wouldn't surprise me if UBS add to their holdings!

[bartyb] 29/9/2021 09:50

AngerSharkz Absolutely

[angersharkz] 29/9/2021 09:10

Most analysts still have RMG as a buy with a price target around 650, some like JP Morgan as high as 800.

Always worth noting city ratings but fundamentals are always more important

[bartyb] 29/9/2021 08:19

Broker ratings I think are well out most of the time.That is only on there web site not published at the moment