Royal Mail Share Discussion Threads

[pre] 22/10/2021 10:25

adjusted operating profit last September was £37m, i'm expected that to be significantly exceeded and it looks like the market has alot of catching up to do as the fundamentals do not justify the low value here, hence the broker upgrades.

[pre] 21/10/2021 10:40

nice rns:-) Looks way undervalued on fundamentals here.

[angersharkz] 20/10/2021 08:29

Thanks bartyb - deutsche bank have also reiterated their buy rating as of 19th Oct. majority of brokers have a buy rating here, there’s only UBS with the sell but I think once 450 is hit they’ll change it to hold to save face! Looks like a very good buy opportunity here at the moment.

[bartyb] 18/10/2021 11:27

CitiGroup recommends Rayal Mail as a buy

[angersharkz] 15/10/2021 10:27

Thanks Bartyb - I think the market may have gotten it’s calculator out and realised how under valued RMG is at the moment!

[bartyb] 15/10/2021 07:41

CEO of Bloom and Wild on Bloomberg commenting on the supply chain.He said they use Royal Mail and are finding them to be reliable so is continuing to use them. The comment was ig general terms about their ability to get deliveries to customers.Positive for Royal Mail if other companies are the same.

[angersharkz] 13/10/2021 13:52

Barclays have reiterated there 550p price target for RMG. They say that the valuation looks compelling and is a significant turnaround opportunity. They also say it has pricing potential. RMG median price target now 659p.

[eaaxs06] 13/10/2021 10:20

Not sure what caused that rise earlier this morning, but (for RMG) to rise 12p in an hour is a bit of a red letter day.

Whatever it was, let's hope to hear more about it.

Good luck everyone, Sid.

[angersharkz] 13/10/2021 07:57

Chancer - what information?

[babbler] 08/10/2021 08:58

Private equity takeover coming. Some are blind to this.

[angersharkz] 08/10/2021 08:39

Yes, I have added another sizeable wedge to my holding this morning, shares extraordinary cheap right now

[j arthur rank] 08/10/2021 06:26

Nice news this morning. Have done very nicely out of RMG this year having sold a fair bit early on but maybe time to addl

[ellie2309] 07/10/2021 11:42

Neither GLS nor Parcelforce are subject to material regulatory oversight by Ofcom and the current regulatory framework that came effect in April 2017 will ONLY remain in place until 2022.

VESA now own over 19%.

[cwa1] 07/10/2021 10:46

Kretinsky adding...

[sig1978] 07/10/2021 06:48

Im back in with Royal Mail. Its looking good value for money at the moment. Fingers crossed!

[angersharkz] 05/10/2021 12:14

Totally agree Sid. The share are extraordinarily cheap at the moment. I think a lot of people can’t see the wood for the trees at the moment. A lot of panic around. I think once a support price is established will we see the buyers coming back in. Best of luck to you.

[eaaxs06] 05/10/2021 09:40

I know the PE ratio is getting a bit outdated nowadays, but a few of us still remember it and use it as one of the main methods of valuing stocks prospects.

Given the recent updates and comments on here, if RMG achieved profits of £850m in the current year, that would put the PE at an exceptionally low 4.6.

Even with the broker’s latest guesstimate of a 2.7% decline for the next 2 years that assumes £800m profit and a prospective PE of 5.1, which (to me) looks incredibly cheap.

Good luck everyone, Sid.

[eaaxs06] 04/10/2021 14:23

Yes Chancer, it did have a market cap of £5.9B, but that was well before the recent price fall.

With 1,000m shares in issue, the current market cap is £4.1B, which leaves it in imminent danger of dropping out of the FTSE100, so certainly won’t help its liquidity.

Good luck everyone, Sid.

[vatteton] 04/10/2021 08:54

i see Kretinsky snapped up another 1% percent
holdings note last Friday, wonder what price ?

[kendonagasaki] 04/10/2021 08:38

Amazon are eating into thier share.They delivering gor third parties too.Can't stop Amazon!

[angersharkz] 03/10/2021 11:44

Chancer - do they have any information as to why they are forecasting a 2.7% decline per year for the next 3 years? And what are the large one off items affecting the results?

If we use RMG’s latest trading update….if we assume they will achieve 400m in H1 and 450m in H2 that will be circa 850m for the full FY. 2.7% decline from that would be around 825m and another 2.7% would bring it to around 805m. That’s still very strong numbers….if there is a decline of 2.7% per FY which I’m not sure how they’ve come to that conclusion?

I would agree that the share price is trading at around 47.5% below fair value which is crazy really.

Inconsistencies in dividend payments….I wouldn’t really like to speculate about futures dividends as things can change but for now it is reinstated and there will be a reasonable interim dividend in November/December I would imagine