Neil Woodford beefs up Royal Mail stake

[TrueBlueTerrier]

http://www.iii.co.uk/articles/248326/ne ... mail-stake" onclick="window.open(this.href);return false;

It's just emerged that on 11 June, superstar fund manager Neil Woodford snapped up over 2 million Royal Mail shares for his Woodford Equity Income fund. That takes his stake in the resurgent postal delivery firm to 51.6 million shares, or 5.2% of the company.

Royal Mail shares go ex-dividend on 2 July, which means a cheque for £7.4 million will be making its way to Woodford HQ at the end of next month.

Woodford began building his stake last year and snapped up shares during the summer at a time when the shares had traded well below 400p. They floated at 330p in 2013 and traded north of 600p before falling out of favour. They traded as high as 508p Friday.

In his Mansion House speech this week, Chancellor George Osborne said the government's final interest in Royal Mail is in the process of being sold – it has just received £750 million for half its remaining 30% stake.

Earlier Friday, we reported how analysts at JP Morgan had upgraded their view on Royal Mail shares from 'neutral' to 'overweight' and hiked the price target from 515p to 605p. The decision comes a month after Post NL abandoned its UK direct delivery ambitions through subsidiary, Whistl - formerly TNT Post.

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

[nataddick]

This guy is a top fund manager and has an excellent track record. He has increased his stake which suggests that he has faith in the future of Royal Mail for reasons best known to him and his team!

[RobertT]

I have a bit of money invested in the Woodford Equity Income fund and at the time of writing, it's increased by around 17% since it's launch in June 2014. Hopefully the RM shares will help it to continue that growth rate.

[nataddick]

Robert - I also have money in the CF Woodford Equity Fund in my ISA and some Woodford Patient in my SIPP.Followed him for years on and off !

[RobertT]

I’ve been investing in equities for some time – around 15 years or so and have various funds in my ISA and pensions. I’m new to Neil Woodford in terms of investing, I put some money in when he launched his fund last year. But like you have followed him to some extent over the years. Seems to know what he’s doing.

[deshulme]

Neil Woodford: The man who can't stop making money

http://www.bbc.co.uk/news/business-33113081" onclick="window.open(this.href);return false;