Royal Mail Share Discussion Threads

[fuji99] 01/6/2022 11:39

With a market Cap of just 3 Billion for a turnover of 12.6 Billion and a PE ratio of less than 5, with an excellent dividend yield, is too cheap to miss. Buying loads today.

[lefrene] 01/6/2022 10:36

I should think the fortunes of the parcel carriers are closely linked to internet retail purchases, and of course general business to business levels. RMG gets drained by it's inefficient letter business, where huge amounts of empty mileage are run so that they can keep to their timetables. At least the parcel side is efficient with far less wasted empty mileage, and self employed van drivers. If you know general business and retail levels are declining, then the carriers too will see their business decline, while their overheads remain fixed, or indeed as with fuel, they climb. Is the economy going to improve over the next 12 months, or is it going to decline as essentials take up more of peoples income. It looks like the shorters expect the wider economy to decline.

[coxsmn] 31/5/2022 16:25

BR, CA and MW are behind the fall.https://www.shorttracker.co.uk/company/GB00BDVZYZ77/

[tuftymatt] 31/5/2022 16:18

Yeah really frustrating in the short term to see this happening but long term it will come good by min 20% or so from these crazy levels. Hold and top up 👍🏻

[brut winky] 31/5/2022 15:48

I am with a forward pe of 10, will buy some in the market downturn that looks about to start again.

[careful] 31/5/2022 15:29

market cap £3.14bn.
to £12.6bn.

Momentum investing works both ways.
Insanity on the way up, Tesla, Bitcoin, Netflix etc.
Insanity on the way down, RMG.

Anyone with spare cash to invest must be tempted here.
A ridiculous price.

[tuftymatt] 25/5/2022 10:45

Good one Dave and let's hope more out there start thinking like them too 👍🏻

[davebowler] 25/5/2022 09:53

He added that cyclicals – including their holdings in Marks & Spencer (MKS), Royal Mail (RMG), ITV (ITV) and Kingfisher (KGF) – were ‘hit quite hard’ and fell to levels where they were ‘irrationally priced’.

‘We see this time and again; we go into economic slowdown and the cyclicals are priced as if they will never recover again. There is no ability to look across the valley and think we will come out of this, earnings will improve and the share price will rise.’

Lance said the pair have taken advantage of this by adding to M&S, ITV and Royal Mail.

[isis] 24/5/2022 14:53

llol - nothing new there though - all Companies are facing similar headwinds.

[lord loads of lolly] 24/5/2022 14:25

isis - I'd ignore any analyst upgrades/downgrades if I were you. They're all completely clueless. The fact JPM has reduced its target from 702p & Peel Hunt from 550p when the share price is barely over 320p tells you all you need to know. I no longer own any RM shares (having sold above 500p back in 2018). But I do think the backdrop looks bleak: 1) Latest operating profit below market consensus 2) Recent cost savings short of target 3) Parcel volumes tapering off lockdown highs 4) CWU spoiling for (yet another) fight with management. The latter increases the risk either of strikes (leading to service deterioration & customer migration) or increased costs if management bows to union pressure. 5) Management's only answer to cost pressures is repeated price increases (oh, and a fuel surcharge), thereby losing the company even more customers. But good luck to all holders. I fear you may need it over the coming year or two.

[cwa1] 24/5/2022 09:07

Royal Mail slid 6.5% after Peel Hunt downgraded the stock to "sell" from "buy", saying it now assumes no dividends or buybacks citing a weakening consumer environment and inflationary pressures.

[isis] 23/5/2022 23:14

I know people who work for EVRI - a pound a delivery on average. They have to work like nutters on a Grand Prix Circuit to earn a living, often doing 12 hour shifts.

[isis] 23/5/2022 23:13

JPMorgan cuts Royal Mail price target to 632 (702) pence - 'overweight'

[lord loads of lolly] 23/5/2022 12:33

glavey - Evri's business price increase this April was less than 1.5%. Royal Mail's was 7.5% (including a fuel surcharge). Go figure. Evri was significantly cheaper even before this - so the price gap just keeps getting bigger. Evri also offers full tracking even on their most basic service & actually pays up (and at retail rather than cost) if they lose/damage a parcel. They're not perfect by any stretch. But then neither was Royal Mail, especially last Christmas. We use both in our business, but switched to Evri some time ago for all except the Channel Isles, Scottish Highlands etc. RM only remains competitive now for the most remote locations, due to their USO. Their share of the pie will almost certainly continue to decline as long as they insist on pricing themselves out of the market, instead of just making their systems more efficient. I was a Royal Mail shareholder at privatisation by the way, but sold out back in 2018 when the price went above £5. I can't see it getting back there any time soon, but good luck to all current holders.

[justiceforthemany] 20/5/2022 14:20

Royal Mail is trading at: -
BELOW NAV/book price
6x forward earnings

Should be 500p minimum and would be if listed in the USA
FTSE is controlled and manipulated by short sellers

[tuftymatt] 20/5/2022 13:17

Yeah it was an opportunity for sure and well done those that got in or topped up.

We need to get back over 350 though and build support from there. I think releasing results at the moment isn't great for anyone as it draws too much attention in a difficult market meaning most get whacked. Far better to drift away from the headlines and build up slowly which I have seen happen in some cases over the past couple of months.

[brucie5] 20/5/2022 10:26

Good to see £3 support. Could bounce quite a bit from here, given, imo, that results were not that bad? Yesterday was surely overreaction.
I hold.

[careful] 20/5/2022 08:47

it seems the moody market likes us today.
better to look away and ignore.

[tuftymatt] 20/5/2022 08:23

All carriers are raising prices at the moment so they are no different it's just made more public.

[glavey] 20/5/2022 07:47

Some of their competitors offer rather low prices. I'm not sure if they are making money now but, with significantly increasing (increased) costs, it's difficult to see how they will be able to continue without raising prices.

[unastubbs] 20/5/2022 06:56

Royal Mail may struggle to deliver

Tempus (The Times)

[isis] 19/5/2022 20:05

I think nearly all stocks are out of favour now. Inflation this high is a hard Beast to tame.

[unastubbs] 19/5/2022 18:09

I guess we'll have to get ready for a series of broker notes reducing expectations and share price targets. some turbulence ahead I reckon. you'd think that a 13% fall on the day would cover these going forward...but anyone who's followed these type of out of favour stocks in the past knows the playbook by now!