Royal Mail Share Discussion Threads

[thorpematt] 03/3/2022 22:50

isis,
That's quite correct. For anyone who may be a little demoralised by their portfolio "under-performance" (compared to indexes), this last few weeks and months really has seen a disconnect between sectors.

Most private investors err more toward the smaller caps and higher profile mid and large caps. The ftse 100 and consequently the all share index and 350 are heavy on banks and commodities (although not as much as they once were). By comparison the rest has really entered a bear market (-20% off peak by definition).

Of course the flip side of such re-traces is that there are bargains to be had. Obviously different investors have different methodology and investment goals, but generally if you are buying a good company at a discount you will do well in the mid-term.

[isis] 03/3/2022 11:56

M&S also had great figures and have dropped more than 30% - take out Miners and Oilers and we've pretty much had a crash.

[isis] 03/3/2022 11:42

I think there is something wider going on in the markets here both ITV came out with good figures and Dividends and both have fallen double digits.
This is a mini crash, a bit like the reaction when Covid restrictions were first announced. We have the War in the Ukraine and a bad dose of inflation on the horizon.
Most of the inflation is linked to fuel prices which is also linked to the Russian invasion.
Same with the Banks - all good figures all fallen. Looks like virtually any Company coming out with figures will get hammered regardless.

[mo123] 03/3/2022 09:40

Credit Suisse cut Royal Mail to "underperform" from "neutral" and trimmed its price target to 345p.
Despite company commentary indicating otherwise, our analysis suggests Royal Mail has lost share of the UK parcel market, which we do not think is widely appreciated.

Shares could now be in a wait for the figures mode.

[isis] 02/3/2022 17:35

Well according to the above survey virtually no Companies are planning to raise Wages by 7+ percent in fact the majority are looking at below 3 percent.

[isis] 02/3/2022 17:13

Since Hegde Funds, Bots and Shorters (all the same people really) influence the market so much now and I've had to change my strategy and build larger holdings for longer terms, trying to second guess or trade is just too difficult for the most part with these Barstewards.
Level 2 is virtually useless now, I think it all changed after the Dotcom crash.

[medieval blacksmith] 02/3/2022 16:32

isis

If everyone gets a pay rise they can afford to pay more for parcel delivery. RMG aren't just going to sit back and swallow the margin squeeze. Neither will Hermes and the rest of them. This inflation isn't demand led anyway, it is a supply squeeze. Very likely to be temporary IMO over a 1-2 year period. RMG were always going to get this from the unions once the bottom line starts to creep up. Par for the course. Don't understand some of these analysts. I guess they have to prove their worth.

Very healthy dividend payout ratio so the dividend yield should be safe.

The only real question one should be asking is do you believe the structural transition to home delivery is a permanent one? I happen to believe that, for most part, that is true, and hence I'm happy to build-up a holding over the next 12 months or so.

[isis] 02/3/2022 16:19

It seems a bit rich that RMG are being targeted when all Companies face the same headwinds, they could say the same about all the Supermarkets, Banks etc. and any large Employers like BT but they're not.
Very strange?

[medieval blacksmith] 02/3/2022 16:04

OK, so they may have pay pressures. So what? If you sold every share on such nonsense headwinds you wouldn't invest in anything. They are making enough money to get rid of the luddites and recruit new employees more in-tune with modern-day ways of life.

[unastubbs] 02/3/2022 16:01

and it's likely RMG will be demoted to the ftse250. what a day! decision is after markets close today

[cwa1] 02/3/2022 15:40

Divi yield going to be in the region of 6.5-7% at the current price(all other things being equal, etc, etc)

[pojscott] 02/3/2022 15:27

Whats the div % at this price?

[medieval blacksmith] 02/3/2022 14:46

careful

Share price fall works to our advantage in the long run. Buy backs happening at a lower price. Even better buy-backs happening at lower than .8 NAV. Bought a second tranche today.

[careful] 02/3/2022 14:27

Surprised this has fallen so much.
At the time of share purchases also.

Fuel costs will be a headwind, but not fatal.
A dramatic crash since January.

[exotic] 25/2/2022 21:05

Got an email from Royal Mail, they're increasing the fuel surcharge by 50%! in 2 weeks time.

Funny how they didn't drop or abolish the fuel surcharge during lockdown when the price of fuel dropped off a cliff!

[redbaron10] 24/2/2022 13:51

Started a new position here at 371.1p after trading in and out since privatisation.

[clanger66] 23/2/2022 17:25

The selling could purely down to the forthcoming index rebalance. The last published indicative review (data from Friday) had EasyJet going into the Ftse100 while Decha Pharm goes out. However with the recent weakness in Royal Mail the market cap is now only £3.9bn so probably a prime candidate for deletion. The actual review will be conducted using the market data on the 1st March and changes announced after market on the 2nd March I believe. If Royal Mail does get demoted to the Ftse250 it should relieve some of this pressure and that will be the time to buy. Just remember though that there is a lag between the announcement date and the effective date.

[mo123] 23/2/2022 17:21

It could be worse una.

Russian president Vladimir Putin has warned that the country's hypersonic missiles are ready to launch.
In a chilling video, he warned that "weapons without parallel in the world have been put on combat duty."

The guys totally lost the plot.

[disc0dave45] 23/2/2022 17:04

There was a bear cross on Monday which could have triggered some additional selling. Looks like there may be some support around 385 but I'm no TA.For the record I don't hold but could be tempted.

[unastubbs] 23/2/2022 16:38

stop loss = 3.89, so most likely will be out of this tomorrow...GLA

[encarter] 23/2/2022 16:33

Yes but it's easier just to use them up so I won't be paying any postage on my eBay sales for the next few months. Also I worry that scammers will find a way to rip RM off.

[isis] 23/2/2022 16:16

You can swap them over for the new ones pretty soon

[encarter] 23/2/2022 15:58

That's all over now. Perhaps it's the issue with the stamps. I personally have 500 quids worth to use up.