General Shares discussion

dancingqueen · Post by **dancingqueen** » 02 Oct 2018, 20:34

No company is too big to fail.

Awful statement.

Did you not see:

Northern Rock
Polly Peck
Energis
Marconi
Carillion
Toy R Us
Woolworths
Ferranti
MFI
Maxwel Communications
Bradford and Bingley

mickeymacca · Post by **mickeymacca** » 02 Oct 2018, 22:14

dancingqueen wrote:
Hawkey99 wrote:Personally think Royal Mail shares are an absolute bargain. Look at how much GLS are making. In a few years they could easily overtake RMUK in profit terms.

Decent dividend.

What not to like.

Bit concerning about those who are selling in a couple of week !!!

Hawkey99

Royal Mail is now ex growth in a very competitive market. Some brokers are now suggesting fair value as 225p-250p. If the divided is cut which is a real possibility then you will be looking at sub 100p.

Profit warnings normally come in three's so things could get even worse very soon for the shares.

Royal Mail share are not a bargain at all.

Yeh I saw that valuation from Liberum Capital at 250.00 not seen any thing below that. I would be amazed if it went below 100p. And of course the dividend is going to decrease, the CEO has already stated that.
Have you looked at RMs Financial Statements from the last 5 years? What you are stating is unusual given the information provided within them.

From what I understand the profit warning is a readjustment of the forecast for this financial year, and is still expected to reach last years figure or just below, and that is based on the poor performance of letters from the year to date, RMs profits are not driven by letters. I don't really see the need to panic about RMs viability to operate as a business, and not really sure where you are coming from, it does appear you may be a little bit emotionally influenced by some of your posts. Most posters on here predicted a drop around this time (albeit perhaps not quite as dramatic) if they we have a poor xmas, I might well be eating my words!

I think the term is tree shaking....

Post by **wacko74** » 03 Oct 2018, 04:50

Where has the CEO stated that the divi is going to decrease? Can you provide a link to it please.

number one · Post by **number one** » 03 Oct 2018, 08:43

dancingqueen wrote:No company is too big to fail.

Awful statement.

Did you not see:

Northern Rock
Polly Peck
Energis
Marconi
Carillion
Toy R Us
Woolworths
Ferranti
MFI
Maxwel Communications
Bradford and Bingley

The huge difference with all those and Royal Mail is there is actually no competition in the letters market and Royal Mail actually have the lions share of the parcel market. They made £500m profit, have you actually seen the profits of other delivery companies. They are holding on by a shoe string

mickeymacca · Post by **mickeymacca** » 03 Oct 2018, 15:58

wacko74 wrote:Where has the CEO stated that the divi is going to decrease? Can you provide a link to it please.

I meant by the nature of the statement, (which is 2 threads up). I think div announcement date for mid-year results is mid-November.