Jokes1 min ago
Is It Is Good Idea To Buy Royal Mail Shares?
23 Answers
The offer ends tomorrow and I have not had time to study this deal. In the past I did buy and sell electricity shares and made a small amount of money. I am not greedy (just careful to make money when given the opportunity). I live entirely on a Government Pension with no additional private pension, so do live on a tight budget. I would be investing a large part of my savings to do this but want to know if iit is worth it.
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For more on marking an answer as the "Best Answer", please visit our FAQ.Well there's always a risk and nothing is guaranteed . From what I heard on the news the sale will be heavily oversubscribed and the ordinary person will be last on the list for allocation so there's no guarantee you'll get any even if you want to. The general view is they will go up in value shortly after sale, I think the minimum spend is £750.
Based upon previous flotations of publically owned companies and the way their shares rapidly gained in value, and also based upon the sense that the Royal Mail has been both undervalued and the issue heavily oversubscribed, all the indications suggest that the price should rise.
But of course past performance is no guarantee :)
All the indications would suggest that you would be very unlikely to lose money, assuming you are assigned shares - as Prudie says, heavily oversubscribed so getting shares at all is something of a lottery
But of course past performance is no guarantee :)
All the indications would suggest that you would be very unlikely to lose money, assuming you are assigned shares - as Prudie says, heavily oversubscribed so getting shares at all is something of a lottery
We must be looking at different companies, Zac. Its the Royal Mail that is being sold off - a company now profitable, since its bad debts and problem pension plan have now been assumed by the Treasury.
The Post Office side of the mail business is separate from the Royal Mail and does indeed run at a loss.
All the indicators suggest that the share value will rise markedly and fairly rapidly, and that those who buy their shares can start trading in them immediately - no lock in period.
Interesting piece in the Guardian on the IPO:
http:// www.the guardia n.com/u k-news/ 2013/oc t/07/ro yal-mai l-ipo-s hares-f loatati on
The Post Office side of the mail business is separate from the Royal Mail and does indeed run at a loss.
All the indicators suggest that the share value will rise markedly and fairly rapidly, and that those who buy their shares can start trading in them immediately - no lock in period.
Interesting piece in the Guardian on the IPO:
http://
@ Zac - Fair enough ;) As an effective part owner, watching the assets being undervalued and in many cases sold back to people who already own the asset, I await the results of the flotation with some interest and no little cynicism. I shall not be investing, but not because I feel the shares may not perform; More because I oppose the flotation in principle.
How about a small wager? A virtual pint on the share performance? I reckon share price will rise markedly from the notional offer price in the days and weeks following the flotation.
How about a small wager? A virtual pint on the share performance? I reckon share price will rise markedly from the notional offer price in the days and weeks following the flotation.
@Zac - you are right; "markedly" is a bit vague. Not quite sure I would want to commit myself to the notion that the share price would actually double though. IPO share price offering is in the band £2.60- £3.30 and I reckon a rise to around £4.20 or so is do-able within say 6 months, which would represent around a 30-60% gain; An excellent return compared to the performance of the FTSE 100, wouldn't you say? :)
Considered against the yardstick measurement of performance by the FTSE 100, I would say 30% over 6 months is "markedly", but no matter :)
OK, I will go with reaching a price of £.4.90 within the first year, which would represent a return of somewhere between 50 - 80 odd %, depending on the exact offer price.
OK, I will go with reaching a price of £.4.90 within the first year, which would represent a return of somewhere between 50 - 80 odd %, depending on the exact offer price.
You usually find that new issues rise quite quickly as soon as trading starts then drop back to a level that they settle at. You also find that they are so oversubscribed that you end up with only a couple of hundered quid`s worth in the end. Probably worth it if you want a flutter and can spare the cash.
I remember when my flatmate was working for a company that was privatised and the general public could only get a very limited amount of shares. The employees though, could get £30,000 worth. She went home to Ireland and on the flight, she sat next to a man who offered to put up the £30,000 if he could use here entitlement so that`s what they did. They made £11,000 overnight and split the proceeds 50/50.
I remember when my flatmate was working for a company that was privatised and the general public could only get a very limited amount of shares. The employees though, could get £30,000 worth. She went home to Ireland and on the flight, she sat next to a man who offered to put up the £30,000 if he could use here entitlement so that`s what they did. They made £11,000 overnight and split the proceeds 50/50.
Hey, Zacs,
You owe me a (virtual) pint! :)
http:// www.the guardia n.com/u k-news/ 2013/oc t/15/ro yal-mai l-share s-tradi ng-stoc k-excha nge
You owe me a (virtual) pint! :)
http://
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