Royal Mail Shares

2010

Royal Mail PLC
LON: RMG - Oct 25 3:53 PM GMT
550.80+21.80 (4.12%)

Can`t understand all the rush to sell when they keep going higher. :cool:

AMILLIONDOLLARS

2010 wrote: »

Royal Mail PLC
LON: RMG - Oct 25 3:53 PM GMT
550.80+21.80 (4.12%)

Can`t understand all the rush to sell when they keep going higher. :cool:

There are less 227 allotments for sale, so institutions are trying to mop up the reminder, I think this is pushing up the prices a bit. Will be interested to see if they get to £6 per share and stay there!!

AMD

Reaper

2010 wrote: »

Royal Mail PLC
LON: RMG - Oct 25 3:53 PM GMT
550.80+21.80 (4.12%)

Can`t understand all the rush to sell when they keep going higher. :cool:

I had planned to hold them for a year but am very tempted to sell now. The prospective yield looks less attractive now the price has risen so much.

Reaper

AMILLIONDOLLARS wrote: »

There are less 227 allotments for sale, so institutions are trying to mop up the reminder, I think this is pushing up the prices a bit. Will be interested to see if they get to £6 per share and stay there!!

No idea about the price but I notice the Singapore Sovereign wealth fund has been buying up and now owns 4.1% of the shares. I am guessing the news gave a boost to the share price today.
http://www.stockmarketwire.com/article/4693809/Singapore-Government-stake-building-in-Royal-Mail-shares.html

sabretoothtigger

Lovely, they all love the royal bit I think. Bullish till it makes the ftse apparently and I thought 5.99 was broker spam guess not.

computer says it must lose 530 to become negative now

doughnutmachine

Lol, you got to love all those trackers that will be forced to buy RM when it joins the ftse 100 :T

brasso

Reaper wrote: »

I had planned to hold them for a year but am very tempted to sell now. The prospective yield looks less attractive now the price has risen so much.

Am I right in saying it depends when you bought? If you bought at 330p, won't the yield still be as good as it was to begin with? If you're buying at 550p then the dividend per share will be a much lower percentage.

Or have I misunderstood how yield is calculated?

sabretoothtigger

Literally yes but no because he is saying I can just sell these and hold something else, the obvious thing being cash itself gains interest.

doughnutmachine wrote: »

Lol, you got to love all those trackers that will be forced to buy RM when it joins the ftse 100 :T

They will be buying now, any time the company value is over 3bn or so the trackers will have reserved some shares in anticipation. I believe almost all of them buy ahead not literally on the day they are forced to

verntern

Intriguing to see the professionals in action. One trade noted today on the Hargreaves Lansdown site:

16:35 - 25/10 Sell 422422 at 555.00p £2,344,442.10

I guess it depends what the seller bought them at.

Ologhai

brasso wrote: »

Am I right in saying it depends when you bought? If you bought at 330p, won't the yield still be as good as it was to begin with? If you're buying at 550p then the dividend per share will be a much lower percentage.

Or have I misunderstood how yield is calculated?

I don't think you've misunderstood, but... there's a 'but'...

If you originally had £750 in your hot hand, a prospective 6% yield (or whatever it was) was pretty attractive.

However, now you've (kind of) got £1,200 in your hot hand with a yield of... something lower. If that yield drops below the yield of some other investment that a person could put their (now) £1,200 into, moving over to that could very well be a rational course.

Make sense?