Shares dropping

[rambo1]

Jeez, I just had mine cashed-in as part of my IHR 2 weeks ago, received £5.20 for each. Timed that right then!

Timed it right, yeah but you'll be getting no more dividends.

[Theghost]

Jeez, I just had mine cashed-in as part of my IHR 2 weeks ago, received £5.20 for each. Timed that right then!

Timed it right, yeah but you'll be getting no more dividends.

Im sure he will survive

[jetblack]

Now is a time, for people who can, to BUY Royal Mail shares, at 486.2p or lower.
The price will recover in the medium term.
With a potential 22.2p in dividends over the next 12 months, where else can you get a 4.566%* return on your savings, and a possibility of capital growth too ?

Agreed.

Also, RMG P/E ratio for financial year end 2016 was 11.5% - compared to an average for the FTSE 100 of 16%.

Has to be said also, that there is a lot of scope in Royal Mail for efficiency savings.

TBT posted a link to a broker that said RMG (on the strength of the Deutsche Post acquisition of UK Mail) could go to £3.20. I'd be sceptical of this personally. You can always find brokers pushing this sort of thing.

They are talking their book, more than likely

Only word of caution about buying more RMG - and if they drop to £4.65 I will seriously be considering it - is that, as employees who already have shares in the company we are already "exposed". That is, if they do slump and not recover any time soon then we are already going to be feeling the pain - without buying into it more.
Its always at your/our own risk.

[aiden01]

Now is a time, for people who can, to BUY Royal Mail shares, at 486.2p or lower.
The price will recover in the medium term.
With a potential 22.2p in dividends over the next 12 months, where else can you get a 4.566%* return on your savings, and a possibility of capital growth too ?

Agreed.

Also, RMG P/E ratio for financial year end 2016 was 11.5% - compared to an average for the FTSE 100 of 16%.

Has to be said also, that there is a lot of scope in Royal Mail for efficiency savings.

TBT posted a link to a broker that said RMG (on the strength of the Deutsche Post acquisition of UK Mail) could go to £3.20. I'd be sceptical of this personally. You can always find brokers pushing this sort of thing.

They are talking their book, more than likely

Only word of caution about buying more RMG - and if they drop to £4.65 I will seriously be considering it - is that, as employees who already have shares in the company we are already "exposed". That is, if they do slump and not recover any time soon then we are already going to be feeling the pain - without buying into it more.
Its always at your/our own risk.

where is all this scope for efficency savings place is falling down around them.

[Postie45]

im interested to know why people on here are interested in buying more RM shares. Granted we have some insight into the company (and to be honest i dont see much "good") and we have had an eye on its share prices as we have been given some shares, but on what basis do people think there is a great buying opportunity at x price ? are you all regular investors in the stock market ? surely theres some better options other than RM which I see as a pretty risky company to invest in when looking forward with the decline in letters and more and more competition in parcels. Also RM is a company with a strong union which makes cost saving profits much harder and with that the threat of strikes. The drop in price recently does coincide with the UK mail news being taken over by Deutsche Post and i see this as much bigger threat to RMs future and can see RM price falling further. Im no expert on this, and if youre not I wouldnt speculate on RMs shares improving.

[RobertT]

The share price has already bounced back a bit from its recent falls. And don’t forget that it’s been below £4.00 in both October 2014 and December 2014 and managed to get back to its current level of around the £5.00 mark. Share prices fluctuate, it’s what they do and is perfectly normal.

When a company gives away shares to its employees, that’s often the first time many people will have held any, and buying more is often made easy via SAYE or a by using preferred broker. And because they know the company they are more confident in doing so.
I’m not saying that’s a good enough reason but it is human nature to a large degree.
At the same time many people wouldn’t entertain buying shares in any other company.

But buying more shares yourself involves more thought. It’s not just a case of hoping the share price goes up, but working out the dividend yield aswell, as that could provide a reasonably healthy income without any growth in share price at all. Based on current price(3/10/16) buying RM shares today would provide a yield of around 4.50% per year. Compare that to the interest you’re getting on your savings account.

Obviously there’s risk involved but that’s the nature of equity investment. Sometimes investing in shares can be a relatively quick exercise if you buy low and sell high. Or you could be in it for the long term to take advantage of a healthy dividend. As long as you’re not using money you can’t afford to lose and you’re going in with your eyes open, then it comes down to personal choice.

[TrueBlueTerrier]

could be a

[rambo1]

A dead cat bounce? I think not. We all see how much work we've got on, can in our office anyway. If we can't make profit with the amount of packets and letters (yes mail is not in decline, as far as I can see). We'll do just fine. We don't buy much in dollars so currency isn't a problem and there's just no lack of parcels coming through. Atb.

[TrueBlueTerrier]

US Dollar - don't forget Royal Mail just this week bought out a Californian Courier company for £71m, so we are exposed at least a little to any £/$ fluctuations.

[wandle]

US Dollar - don't forget Royal Mail just this week bought out a Californian Courier company for £71m, so we are exposed at least a little to any £/$ fluctuations.

Yes, Royal Mail IS now exposed to currency fluctuations now, but this is a good time to be acquiring US subsidiaries, surely?

If the £ was strong, and the exchange rate were currently £1 = $1.6, a US subsidiary making $1.6m profit would translate to £1m profit for Royal Mail.

However, at an exchange rate of £1 = $1.31, that same $1.6m profit would translate to £1.22m profit for Royal Mail.

[NWpostie]

With the pending glut of RM shares being sold on the market, prices are dropping in anticipation, this happened when Gordon Brown sold our gold reserve, he gave too much notice and the market dropped in anticipation, when things are in short supply prices go up, I intend to keep mine and reap the dividends eventually they will add to what I paid for my extra shares effectively paying for itself, including my allocated share from RM, essentially its money from nothing and I would advise keeping hold of it and think long term, if you really need the money by all means sell, you will no longer get any divis, in the long term you lose out.

[fishtank]

With the pending glut of RM shares being sold on the market, prices are dropping in anticipation, this happened when Gordon Brown sold our gold reserve, he gave too much notice and the market dropped in anticipation, when things are in short supply prices go up, I intend to keep mine and reap the dividends eventually they will add to what I paid for my extra shares effectively paying for itself, including my allocated share from RM, essentially its money from nothing and I would advise keeping hold of it and think long term, if you really need the money by all means sell, you will no longer get any divis, in the long term you lose out.

The UK still holds about 300 tons of gold.
I f Cameron had sold it at the height of the market he would have netted around £7.5 billion more than if he sold it today so by not selling our gold Cameron has lost about 3 times as much as Brown did. That's pretty much why it's pointless governments holding such a speculative commodity as gold.

[Surreypostie]

People keep banging on about the dividends we get, sorry but it is hardly a life changing amount of money. 3 or 4 quid a week it works out too, big whoopy doo, it should never have been sold off period. I'm in 2 minds if I should sell or not. I don't need the money but with all the doom and gloom shoved down our throats I certainly wouldn't invest my own money in this company. Sure keep them 2 years to avoid the tax and Ni but they could be worth 2 quid each then. Nobody knows, the dividends are not guaranteed either. All you can be sure of is we will do more and more lapsing to pay for it and more and more people will pay with their jobs.

[NWpostie]

With the pending glut of RM shares being sold on the market, prices are dropping in anticipation, this happened when Gordon Brown sold our gold reserve, he gave too much notice and the market dropped in anticipation, when things are in short supply prices go up, I intend to keep mine and reap the dividends eventually they will add to what I paid for my extra shares effectively paying for itself, including my allocated share from RM, essentially its money from nothing and I would advise keeping hold of it and think long term, if you really need the money by all means sell, you will no longer get any divis, in the long term you lose out.

The UK still holds about 300 tons of gold.
I f Cameron had sold it at the height of the market he would have netted around £7.5 billion more than if he sold it today so by not selling our gold Cameron has lost about 3 times as much as Brown did. That's pretty much why it's pointless governments holding such a speculative commodity as gold.

Bit of a catch 22 really, if Cameron had begun to sell the gold, there is a good chance the market would drop in anticipation of the sale, sometimes I think there is a cartel going on.

That said you never lose on gold, it should be retained as it's a tangible asset.

[bustedflush]

With the pending glut of RM shares being sold on the market, prices are dropping in anticipation, this happened when Gordon Brown sold our gold reserve, he gave too much notice and the market dropped in anticipation, when things are in short supply prices go up, I intend to keep mine and reap the dividends eventually they will add to what I paid for my extra shares effectively paying for itself, including my allocated share from RM, essentially its money from nothing and I would advise keeping hold of it and think long term, if you really need the money by all means sell, you will no longer get any divis, in the long term you lose out.

The UK still holds about 300 tons of gold.
I f Cameron had sold it at the height of the market he would have netted around £7.5 billion more than if he sold it today so by not selling our gold Cameron has lost about 3 times as much as Brown did. That's pretty much why it's pointless governments holding such a speculative commodity as gold.

Bad Logic if I ever saw it. Brown flogged most of it in a slump in price and cost us more than Nick Leeson in a breakdown. How can 'not selling' something 'cost' money?? A bit like me telling you that you cost your family £10k because you didn't sell your home at the peak of the price boom .

A least Cameron kept it instead of flogging it off like that pillock Brown and didn't speculate with it, to pay off some of El Gordo's insane borrowing.

RM shares will plummet when the impending national strike occurs as they try and bully you into one wave and 6-hour walks.