Royal Mail privatisation... Would you?

grizzly1911

MrRee wrote: »

My concern is that I want to invest big - maybe £75,000 worth - and stag them.

Lightweight.

coastline

With a price tag of £3bn the dividend of £200m annually gives a yield over 6% gross...a share for the income portfolio..
They plan to maintain a healthy dividend in the future...also worth noting....not that many on 6% at the moment.
Think operating profits were around £400m ??...so the P/E ratio won't be too high either..
Like all privatisations there'll be scope for cost savings..like it or not this will happen..
I've heard initially it may not be included in the FT100 due to the market capitalisation..

Glen_Clark

Seems you will be able to buy them direct from the Government, or through a broker.
Anyone looked into the pros and cons of which way to do it?

Masomnia

£3bn would just see it in the FTSE100 at today's close. So it's going to depend on what the situation looks like when it finally floats.

MrRee_2

custardy wrote: »

I have had a squint at the staff booklet on this
seems over £10.5K you get lower priority
as for a minimum of £10K. How would you sell that to Joe Punter?

To be honest, this wouldn't really interest Joe Public if it was limited to £750 each - just not enough profit in it at all.

£10,000 minimum would be of interest as the returns will be worth getting up for.

There will be good returns, good profits for stagging too ...... it's actually a complete no-brainer. Such a shame that it will be limited to just £750 per person - pointless.

BobQ

MrRee wrote: »

Anyone here buying these shares?

I shall be loading up on them, the dividend promise seems very attractive.

There are to be strikes by the employee's against the sell-off .... in this case I hope that these staff forego their free £3,000 worth of shares (or donate every single one to charity)?

In fact, if you are on strike against privatisation you should be barred from receiving anything IMO.

So you plan to buy whatever the cost, amazing!

Seems like a re-run of water privatisation, no benefit to the public, a state monopoly replaced by a private monopoly and prices continue to rise without any improved efficiency or benefit to the former owners.

Still as long as you make money you could not care less. I look forward to your moaning about the price increases and the asset stripping.

Even Thatcher did not approve of selling off the Royal Mail.

MrRee_2

I will buy whatever the cost, yes.

It's going to happen, I could make some money, that's absolutely fine by me ......... the more who don't buy the more for me.

You will not hear me crying about price increases or asset stripping - indeed, the Royal Mail holds some absolute top notch properties ..... I will own a share of those! I can't lose, great Xmas due for me!

chewmylegoff

Buy shares in a failling business whose outlook seems massively negative. What a great opportunity. I would invest but I'm too busy ploughing money into Hibu.

MrRee_2

You may not have noticed, but the Internet has happened while you've been asleep.

This means lots of parcels flying this way and that .... the letter market is dead, but that's of no issue when the parcels are taking off.

Then, as I have said before, the prime property owned by Royal Mail - this portfolio of bricks and mortar - is worth an absolute fortune .... sell that and I get my money back!

Win, win, win, win ......

custardy

MrRee wrote: »

To be honest, this wouldn't really interest Joe Public if it was limited to £750 each - just not enough profit in it at all.

£10,000 minimum would be of interest as the returns will be worth getting up for.

There will be good returns, good profits for stagging too ...... it's actually a complete no-brainer. Such a shame that it will be limited to just £750 per person - pointless.

sorry I didnt put it well
£750 is the minimum (£500 for RM staff)