Partnership share matching scheme December?

[RobertT]

Minus £264 over 11 months.

I haven't offset this figure by taking into account the free shares or dividends as I believe they are a bonus for my investment,my hard earned cash.

That's equity investments for you. They go down as well as up.

Have you included the tax breaks, and the fact that each £1 worth of shares you buy only actually costs you £0.68?

[james]

Maybe someone smarter than me could sit down and work it out.
All I see is a share price that should be I think minimum £4-£5.

[RobertT]

Maybe someone smarter than me could sit down and work it out.

You get tax relief and PSE on your P&M contributions, so each £1 payment on your payslip means your income tax is 20p lower and your NIC's are 12p lower – the government pay that 32p!
Your pension payments are the same as are some things you might be buying via My Bundle.

All I see is a share price that should be I think minimum £4-£5.

What you think the share price should be is irrelevant, it's what it actually is that matters.

But as long as you think it will increase in the future, then you're currently buying in the sales. So when or if it does go back up, then you'll be sitting pretty.

If you're buying at £2 per share at the moment and they go up to £4 next year for example, you'll have doubled your money.
But factoring in the tax breaks, each £2 share is only really costing you £1.36. Meaning your money would actually nearly triple!

So in practice the share price can go down and you can still make a profit!

[paul2011]

If you buy £23.07 of shares each month your dividend payment is £222 not bad

[wacko74]

Maybe someone smarter than me could sit down and work it out.
All I see is a share price that should be I think minimum £4-£5.

As for the SP being considerably below where all metrics suggest it should be at... read up on shorting and that will make you understand why it is where it currently is.

A thoroughly corrupt and devious practice which is actually illegal in many other countries stock markets.

[james]

Maybe someone smarter than me could sit down and work it out.
All I see is a share price that should be I think minimum £4-£5.

As for the SP being considerably below where all metrics suggest it should be at... read up on shorting and that will make you understand why it is where it currently is.

A thoroughly corrupt and devious practice which is actually illegal in many other countries stock markets.

Wacko,
Can the shares be shorted week after week,month after month to explain the steady decline from October last year?

[wacko74]

Maybe someone smarter than me could sit down and work it out.
All I see is a share price that should be I think minimum £4-£5.

As for the SP being considerably below where all metrics suggest it should be at... read up on shorting and that will make you understand why it is where it currently is.

A thoroughly corrupt and devious practice which is actually illegal in many other countries stock markets.

Wacko,
Can the shares be shorted week after week,month after month to explain the steady decline from October last year?

Yes pretty much so. Once a group of ''investment'' institutions decide to collude and act in unison to target and short a particular stock there's no end of dubious practices they can do to drive the price of that stock down, from fake websites putting out false negative information, to buying each other out of their short positions in off the books trades to keep the price low despite large volume buys taking place.

[james]

Maybe someone smarter than me could sit down and work it out.

You get tax relief and PSE on your P&M contributions, so each £1 payment on your payslip means your income tax is 20p lower and your NIC's are 12p lower – the government pay that 32p!
Your pension payments are the same as are some things you might be buying via My Bundle.

All I see is a share price that should be I think minimum £4-£5.

What you think the share price should be is irrelevant, it's what it actually is that matters.

But as long as you think it will increase in the future, then you're currently buying in the sales. So when or if it does go back up, then you'll be sitting pretty.

If you're buying at £2 per share at the moment and they go up to £4 next year for example, you'll have doubled your money.
But factoring in the tax breaks, each £2 share is only really costing you £1.36. Meaning your money would actually nearly triple!

So in practice the share price can go down and you can still make a profit!

OK,re-worked the figures taking into account that each £100/month is actually £68 net/month.

So £68 a month for 11 months = £748.
£748 divided by 425 shares gives an average of £1.76.
Again Fridays share price of £1.92 x 425 shares is £816.
Our average of £1.76 x 425 shares = £748.
So at Fridays share price of £1.92 we have a profit of £68.

Anyone else getting these figures?
And I deliberately left out the 2 free shares per month.

Wacko,Thanks for your reply regarding shorting.

[james]

Again,using the £68 net/monthly contribution,a breakdown month by month;

Oct.18 27 shares @ £2.51

Nov.18. 28 shares @ £2.42

Dec.18. 38 shares @ £1.78

Jan.19. 34 shares @ £2.00

Feb.19. 33 shares @ £2.06

Mar.19. 35 shares @ £1.94

Apr.19. 43 shares @ £1.58

May19. 40 shares @ £1.70

Jun.19 56 shares @ £1.21

Jul.19. 43 shares @ £1.58

Aug.19. 48 shares @ £1.41

425 shares @ £748 net = £1.76 per share average over the first 11 months of this Partnership & Matching Scheme with a £100 gross/£68 net contribution.

I've not accounted for the 2 free shares per month but they'll dilute the above figures a little more.
Don't forget the 5 year conditional holding period.

If my figures are wrong I apologise in advance but I think they are correct.
I'll try and delete my previous wrong figures.

[UglyDef]

my share purchase a month looks a little different to yours dont know why, I also did a £100 month

From what I see we are running at a loss at today SP not accounting for the tax relief

430 + 22 * 1.89 = 854.28 plus 76.84 dividend = 931.12

but we paid in 1100 therefore a loss of £170

but if you include the tax relief, something I never thought about till I see this thread 11 * 68 = 748 so a gain of £180

i ve included the free shares and dividends we are getting in a couple of weeks time

(Not added the dividends in january which I think was about £7.92 based on the 93 shares I had in December plus 6 matching shares)

[james]

[quote="UglyDef"]my share purchase a month looks a little different to yours dont know why, I also did a £100 month

but we paid in 1100 therefore a loss of £170

but if you include the tax relief, something I never thought about till I see this thread 11 * 68 = 748 so a gain of £180

i ve included the free shares and dividends we are getting in a couple of weeks

I initially thought the exact same myself.
Yes,we paid in £1100 gross but a poster reminded me of the tax/N.I. relief so it is £748 net if you hold them for 5 years.
£68 net x 11 months = £748.

I didn't include the dividends or the free shares in my figures as I see them as a bonus for my investment.

I really just want my figures to show clearly whether this company share plan is worth investing in and at this moment in time,being in profit,I believe it is and will continue with my weekly deductions.

[james]

This is why I did not include the dividends/ matching shares in my figures.

I just flicked through the original Partnership Matching booklet and I quote:

"The company does not have to pay dividends."

"Royal Mail reserves the right to vary or withdraw the matching ratio applied at any time."

"There is no formal timeline for the plan."

I hope this makes things clearer.

[Celgar]

Minus £264 over 11 months.

I haven't offset this figure by taking into account the free shares or dividends as I believe they are a bonus for my investment,my hard earned cash.

That's equity investments for you. They go down as well as up.

Have you included the tax breaks, and the fact that each £1 worth of shares you buy only actually costs you £0.68?

Think about the posties who took part in previous scheme that lasted three years then used the funds saved to purchase RM shares at the supposedly cheap price of 360p. Now those same shares are worth about 200p.

[james]

51 shares purchased + 2 free for September @ £2.26 bringing the total for the first year to exactly 500 for those that invested £100/ monthly.

[james]

15/10/2019 Share purchased / 43 @ 213.8974p= £91.97 + 2 free.

Still building up nicely and in profit.