Shares

Ringer21 · Post by **Ringer21** » 12 Jan 2017, 17:43

Shares seem to be going down everyday what are people's thoughts cash in or stick with them

shepherdess · Post by **shepherdess** » 12 Jan 2017, 19:37

Shares go up and down the price today I'd more than the same time on the previous two years ,but at the end of the day the choice is yours HSBC gave shares of Royal Mail a price target of 513 indicating a potential increase of 15.07% from Royal Mail’s current price of 445.8.

borgpicard · Post by **borgpicard** » 12 Jan 2017, 20:51

Ringer21 wrote:Shares seem to be going down everyday what are people's thoughts cash in or stick with them

If you check the last 3 years, they have been going down every winter, then start rising.

Decky Boy · Post by **Decky Boy** » 13 Jan 2017, 21:09

Historically the RM Shares have tended to peak in May... and there is a saying “Sell in May and go away, don’t come back till St Leger’s Day”

The above is (absolutely) not financial advice but a google of the rhyme (above) makes for interesting reading. I have no plans to sell my holding in Royal Mail PLC... as I know how hard we all work ... and mail will always need to be delivered

Post by **holly123** » 15 Jan 2017, 17:19

How many share do a full timer with 20 yr in have and if finish on Ill health would royal mail buy them back or would Ihave a choice who bought them cheers

Post by **TrueBlueTerrier** » 15 Jan 2017, 17:32

holly123 wrote:How many share do a full timer with 20 yr in have and if finish on Ill health would royal mail buy them back or would Ihave a choice who bought them cheers

The dividend statement you got this week will show how many shares you have.

No Royal Mail don't buy them back, they are offered on the open market and sold to anyone who thinks the price offered is acceptable. In fact they probably won't be sold as an individual lot, but as a batch with others that the particular trader is authorised to sell.

But if you mean by choice, that you are thinking of signing them over to someone, then you can do that once the shares are transferred from SIP to you. What they pay you and the legal issues concerned would be up to you to investigate.

Post by **holly123** » 15 Jan 2017, 22:34

Ok thanks

wandle · Post by **wandle** » 20 Jan 2017, 23:58

I find it odd that last year, when the share price rose from around today's levels (~414p) in February 2016, to around 543p in mid-June (before the Brexit vote crashed the price of lots of shares), nobody was asking 'why is the share price rising almost every day? and is this a good time to sell?' Yet the share price had risen more than 31% in under 5 months !!

Successful investing is not just about knowing when to sell, it's about recognising when a share price represents good value, and knowing when to buy.

At these levels, the price represents excellent long-term value. Buying now would give you a dividend yield of 5.39%, compared to 4.16% if bought when the share price was 543p. The question you should be asking is: is this an excellent buying opportunity, even on a one-year view? The pension issue WILL get resolved, because ultimately, the company does not need our consent to make the changes; the best the union can achieve is to secure some guarantees on job security and perhaps a decent pay increase in exchange. (People who joined in recent years are already on an inferior scheme. People already drawing their pension, or due to draw it before March 2018 are - in my humble opinion - also unlikely to have an appetite to strike on this issue, despite the strong feelings of those like myself who WILL lose money under a Defined Contribution scheme).

If RM reduces the amount it has to set aside for pensions, it will increase the likelihood of higher dividends in the future. We might find that unpalatable, but it doesn't make it any less likely.

So, a potential rebound in the share price, and a 5.39% dividend yield ? If I could, I'd be BUYING now, not selling.......

datasaint · Post by **datasaint** » 21 Jan 2017, 13:23

The letters market is declining year on year. They have a massive expenditure on staff over 50% of revenue, it's also heavily unionised and resistant to change. And all the time there is massive competition in the marketplace with couriers able to undercut RM's operating costs by a fair margin.

I think something significant like the USO changing or a lot more automation coming in will be needed to revive the share price.

wandle · Post by **wandle** » 21 Jan 2017, 23:23

norm wrote:The letters market is declining year on year. They have a massive expenditure on staff over 50% of revenue, it's also heavily unionised and resistant to change. And all the time there is massive competition in the marketplace with couriers able to undercut RM's operating costs by a fair margin.

I think something significant like the USO changing or a lot more automation coming in will be needed to revive the share price.

You are looking solely at the domestic picture. Royal Mail Group is, increasingly, an international business. Growth in the GLS (parcels) division is healthy, and RM acquired a large Californian-based parcels business in 2016. This is where the growth in future earnings will come from...

datasaint · Post by **datasaint** » 22 Jan 2017, 09:53

wandle wrote:
norm wrote:The letters market is declining year on year. They have a massive expenditure on staff over 50% of revenue, it's also heavily unionised and resistant to change. And all the time there is massive competition in the marketplace with couriers able to undercut RM's operating costs by a fair margin.

I think something significant like the USO changing or a lot more automation coming in will be needed to revive the share price.
You are looking solely at the domestic picture. Royal Mail Group is, increasingly, an international business. Growth in the GLS (parcels) division is healthy, and RM acquired a large Californian-based parcels business in 2016. This is where the growth in future earnings will come from...

So what staff in the UK are an irrelevance?

Is there anything stopping a rival firm buying the UK postal business if RM wanted to sell it, as unlikely as that may sound.

Post by **TrueBlueTerrier** » 22 Jan 2017, 10:53

No, Royal Mail doesn't even have to want to sell, it could be subjected to a Hostile takeover and then split up. There are rules both sides have to follow but if the company initiating the take over thinks the expense and time is worth it, there isn't much the board could ultimately do.

Although a competitor trying to takes us over could be looked at by The Monopoly commission.

wandle · Post by **wandle** » 23 Jan 2017, 22:46

We, as employees, own 12% of the shares of Royal Mail. Any potential takeover by a rival can only succeed if they have already purchased, or received unequivocal undertakings in respect of, more than 90% of the company's shares. The remaining shareholders, us, can only be forced - as 'minority' shareholders - to sell to the bidder if we hold less than 10%.

So it could be that those who have sold their free shares since October 2013 have not only paid tax unnecessarily, they may well have taken the total shares held by employees below the critical 10% level ...

Q. When can minority shareholders be squeezed out?

A. Once 90% by value of the shares subject to an offer and associated voting rights are acquired.

(from http://uk.practicallaw.com/1-518-5074#" onclick="window.open(this.href);return false;)

k979aaa · Post by **k979aaa** » 25 Jan 2017, 20:59

wandle wrote:We, as employees, own 12% of the shares of Royal Mail. Any potential takeover by a rival can only succeed if they have already purchased, or received unequivocal undertakings in respect of, more than 90% of the company's shares. The remaining shareholders, us, can only be forced - as 'minority' shareholders - to sell to the bidder if we hold less than 10%.

So it could be that those who have sold their free shares since October 2013 have not only paid tax unnecessarily, they may well have taken the total shares held by employees below the critical 10% level ...

Q. When can minority shareholders be squeezed out?

A. Once 90% by value of the shares subject to an offer and associated voting rights are acquired.

(from http://uk.practicallaw.com/1-518-5074#" onclick="window.open(this.href);return false;)

One you don't have 10% or even 12% as we all employees don't have a unified voice or structure to do so no group holding of shares. But we do still have a voice in how we work in this company and if they at the top of this business think we are under performing they should look at the shower of shite they have up top. I could make 10% by cutting out the top brass who do nothing every single day except twiddle their thumb!

toomuchcoke · Post by **toomuchcoke** » 26 Jan 2017, 16:30

k979aaa wrote:One you don't have 10% or even 12% as we all employees don't have a unified voice or structure to do so no group holding of shares. But we do still have a voice in how we work in this company and if they at the top of this business think we are under performing they should look at the shower of shite they have up top. I could make 10% by cutting out the top brass who do nothing every single day except twiddle their thumb!

It doesn't matter that there's no unified voice or structure ... It's not that there has to be ≥10% of shares in a single group that refuse to sell, it just has to be the case that there are 1 or more shareholders whose holdings in total amount to ≥10% who refuse to sell. A firm which bought over 75% of the Royal Mail could have them de-listed from the stock market, but you have to own more than 90% to be able to buy-out the remaining shareholder(s) if they don't want to sell.