we are bolshie work shy tossers

[windermeredave]

So flaming sad when so called journalists shoot from the hip without the slightest bit of research

Royal Mail shares will go up after IPO so maybe stag but don’t invest
By Tom Winnifrith
October 4th, 2013
We will soon hear the exact pricing of the Royal Mail IPO and I expect it to be towards the upper end of the 260p-330p indicated range as there has been very strong institutional and private investor demand – I guess we are in a bull market. And spreadbetters reckon the stock will go to 340p on days one. So there is a case to stag the issue. But..

If you want to take a quick turn by stagging it go ahead. But you would not wish to buy for the long term. Why?

1. This company employs a large workforce of bolshie workshy tossers. The 115,000 members of the Communication Workers Union (posties to you and me) are balloting on strike action and for this company the threat of walk-outs is always there. It will be hard to force through changes that the Royal Mail still needs to make in a changing workplace. Never invest in heavily unionised industries.

2. There is, I sense, a bit of a time-bomb with the company’s pension fund. The new-look Royal Mail Pension Plan was created in April last year with £2.2bn of assets and a zero deficit. It is closed to new joiners but has 112,000 current staff as members. The government took on £38bn of Royal Mail's historical liabilities in order to prepare the way for the postal operator's privatisation. It was believed no private investors would take on a firm with a pension deficit so large.

However, in the year since, a projected actuarial deficit of £162 million has developed in the new plan, according to its latest set of financial results for the year ended March 31. Royal Mail Group described this in the results as an "estimated rolled forward basis" for the deficit calculation. Royal Mail has admitted that the full valuation, , could lead to its payments into the fund rising to £700 million a year from the current £400 million, suggesting a new £300 million-a-year pensions bill for the company. And this will get worse. Clearly Royal mail staff numbers will fall steadily as it adapts to the new ways we communicate so it will be left with an ever greater number of retired staff supported by ever fewer workers and the company will have to pick up that tab.

3. Common sense suggests that this is a business in terminal decline. It has relatively high fixed costs operating its business. But as each year goes by fewer letters will be sent. My dad communicates with me my post twice a week. I reply by phone. My daughter uses email or annoying texts. The grim reaper and demographics are not on this company’s side. Now I accept that while my Dad buys his clothes in a shop, my daughter buys hers on line and the internet driven parcels delivery side will grow but this is a competitive market so I do not expect long term margins there to head any way but down. And newer parcels only operators do not have the Royal Mail’s fixed costs.

4. As things stand from 2015 the Royal Mail will be able to desist some loss making social activities – delivering a copy of Sheep Shaggers monthly magazine to isolated sheep shagging crofters in Scotland – but that may change as a result of political pressure. Labour has already committed itself to that should it win the next election. That is an uncertainty.

5. Some punters are attracted by the yield. Okay if the IPO comes in at 330p the yield is 6.1% which is good. It is attractive but would I really be chasing this stock at a yield of sub 6% given the issues noted above which may restrict the ability of the company to increase the payout? I would refer you to this seminal piece by my colleague Robert Sutherland Smith on SSE (SSE) where the 2014 yield is just over 6%. This is a company where the earnings visibility is far greater, where there is no potential pensions timebomb, where the political and regulatory framework will not, potentially, be altered in 2015 and where the company will clearly deliver a progressive dividend policy.

As an income seeker I would rather own SSE at 1551p than the Royal Mail at 340p. It is simple.

And so what to do? There is a case for stagging the IPO. You will get stock at 300-330p and can hope to flog it at 340p in the early days after the float. You make a shabby 10% which even on the minimum £750 subscription more than covers your dealing costs and you are happy. But at 340p you should sell and either spend the profits on wild living or reinvest in a better income play such as SSE.

[UnhappyGremlin]

I'm not a tosser (I'm a postie, not a 'manager').
I'm not workshy, there is no chance of that these days. Well, unless I go into management.

But, the journo's got me on bolshie. Though, I'd phrase more willing to stand up for myself, and refusing to be bullied.

[meweavy]

Does this journalist write for the sport?

[blackadder]

no, he writes the r.m propaganda being spilled out by moya and chums

[k979aaa]

I can push a pen all day bet this guy cannot get his head out of his ass as for bolshie? I am a communist and I don't care as for tossers I should think he look in the mirror not the paper just at himself which I suspect he does regularly no doubt tossing and turning (mirror above bed type) not a day 's work in the guy could type and flame them all day but I have to work for a living.

[Surreypostie]

Twat needs to get himself a proofreader before he prints his bullshit and makes himself look dumb. Spot his error in the post below.

My dad communicates with me my post twice a week.

[S6 Stroller]

The irony of being called a work shy tosser by someone who makes money speculating on markets...

[k979aaa]

The irony of being called a work shy tosser by someone who makes money speculating on markets...

And 115,000 workers who would all put him to shame for his own work shyness every day of the week including Saturdays.

[S6 Stroller]

Imagine my surprise that all my preconceptions of this tool came true...

http://www.youtube.com/watch?feature=pl ... hVqvL5JHAE" onclick="window.open(this.href);return false;

[Shambles]

I'm not a tosser (I'm a postie, not a 'manager').
I'm not workshy, there is no chance of that these days. Well, unless I go into management.

But, the journo's got me on bolshie. Though, I'd phrase more willing to stand up for myself, and refusing to be bullied.

nice one Grem, well said mate

[POSTMAN]

Royal Mail shares will go up after IPO so maybe stag but don’t invest

If you google the title it takes you to 2 sites,don't want to put his link on here as he'll only come on and wind us up.

[XCHpostie]

I wonder if he would be so lippy to the average posties face? Let's go after this c*nt.

[redandblue]

He has got a face you would want to slap, thats for sure.

[Shambles]

He has got a face you would want to slap, thats for sure.

He's got a face, only a mother could love

[The_Wax_Man]

Royal Mail shares will go up after IPO so maybe stag but don’t invest

If you google the title it takes you to 2 sites,don't want to put his link on here as he'll only come on and wind us up.

I say Let him..

I would very much like to see him get up at 4.30am, get into work, prep a frame and go out with 8 bags plus packets and be back for 2pm without cutting off.

Hell no - he'll be sitting in his conservatory, sipping his morning coffee typing on his laptop spouting such crap.... whilst waiting for his postie to deliver his latest Amazon order.

Twit.