Royal Mail Shares - Buying is fine, but how to sell?

Troubled2012

I've never bought a share in my life but the buzz over the upcoming Royal Mail sell-off has me interested.

I've found dozens of articles on whether you should buy RM shares - but not one mentions how you sell them and what the fees (if any) would be involved in doing so.

Pie-in-the-sky scenario:

If I buy say, a £1000 worth, and they rocket to £2000 in the next week then I would want out.

Can I do that?
How much would it cost me to bail?

Thanks in advance!

Lokolo

You can buy shares in certificate form (most likely how the IPO works) or electronic form.

When you sell, if they are in electronic form, then you log in to your stockbroker and set an order to sell. (£6-15 depending on broker)

If you have in certificate form, you can usually sell them at a bank for a high price. Or you can deposit them into a stockbroker (usually free), and sell them through that.

But I highlight doubt they will rocket 100% in a week.

Buzby

Indeed - I wouldn't touch them with the proverbial pole. RM staff are not stupid, and the promise of shares in a company WE have already had a financial interest in is nonsensical. It's another case of bring Ackerman to pay for what's ours.

And you expect to make a profit?

Troubled2012

Thanks Buzby, must admit I didnt understand your Ackerman reference though.

Do you really think they will not hold their value (or improve slightly) over a few years? I'm just looking for something solid to perform better than bank savings rates.

Cheers

Lokolo

Troubled2012 wrote: »

Thanks Buzby, must admit I didnt understand your Ackerman reference though.

Do you really think they will not hold their value (or improve slightly) over a few years? I'm just looking for something solid to perform better than bank savings rates.

Cheers

Then just shouldn't be investing in single shares. Single equity investments are pretty high risk.

A pretty basic diagram showing risk vs. reward.

BarrBru

They won't rocket to £2,000, believe me.

You sell them in seconds by telephone (expensive), or on the internet via a stockbroker platform like Alliance Trust Savings, Hargreaves Lansdown and and hundred other companies.

But don'y even think of buying them if the price isn't right!

I am very interested in buying them too, it's a good business and should be able to pay a nice steady dividend. Plus when out of the public sector there should be alot of efficiencies like selling property, improving systems etc.

I won't and can't decide if I'm gonna purchase till I see the price though.

Good luck pal!

racing_blue

1. A business model based on sending stuff round the country, written on paper. In the 21st century.
2. often burning fossil fuels to do it
3. tied to using labour from one of the most expensive markets in the world

Three reasons why I am out

so out

I have never shorted a share before but this may be the 1st

Freecall

I image that there are lots of people on these boards that are interested in RM but until we know how much they want for it we can't possibly take a view on whether or not it is good value.

A market worth of around £2.9 billion seems to be the consensus but we will have to wait and see.

My own view is that the Government can't possibly allow it to go wrong so will tend to price it on the cheap side. Maybe £2.7 billion?

With £440 million of profit last year and a strong cash flow this is going to be one for dividend investors.

As I say, we will have to wait and see.

2010

The most important thing seems to have been overlooked here.
You do not know the price of each share or how many you will get until AFTER they have grabbed your money.

Would you go into a shop and give them £1k for goods and they tell you afterwards how much the goods are and how many you`ll get

---

NO.

sabretoothtigger

That is standard for an IPO. You are a tiny buyer who doesnt get to pick and choose, its more like a blind auction. Shoppers can wait till its in the store, after ipo

Lakeuk

Hype is what an IPO wants, I'm not sure about RM, while I see alot of scope for stream lining the business, the work force could be a nail in the coffin for progress on RM.

They are currently too expensive on the end to end standard mail processes, it can be a lot cheaper for companies with large mail drops to buy their own large sorting machines, employ personnel to man the sorters, have private delivery companies take the mail to RM main distribution centres for RM to do the finally delivery - it's shocking that RM has costed it's self out of the market :eek:

If the management team can get RM into the 21st century then it's maybe a good punt but they'll need to clear to staff that they become part of the success or go elsewhere