Royal Mail Shares

Glen_Clark

Don't apply by post as you might be too late

Rollinghome

Doshwaster wrote: »

otherwise keep for at least long enough to get the promised dividend.

Any particular reason for doing that, bearing in mind that the share price will adjust downwards immediately they go ex-divi to compensate for the loss of the dividend?

chucknorris

Rollinghome wrote: »

No government, nor the underwriters, would want the issue to be a flop or to be accused of "luring in small investors" and causing them an immediate loss. Nor will they want to be accused of "lining the pockets of the rich" by giving away national assets. So the intention will be to price them to sell but not at too glaring a discount.

If you're thinking of stagging the issue then the best time to sell depends on a lot of factors. If a lot of punters have the same intention, including those who got a bigger allocation than they expected and are consequently short of readies, and try to sell immediately then that could initially hold the price down and you could find you get a better price a couple of months down the line - or not. If the institutions find themselves short of stock then selling immediately could be the best short-term option.

What you can count on is that all buyers will try to time their buys to pay as little as possible and all sellers will try to time their sales to get as much as possible.

I was thinking of applying for 5k in my name to possibly hold and 5k in my wife's name to sell.

gadgetmind

Rollinghome wrote: »

Any particular reason for doing that, bearing in mind that the share price will adjust downwards immediately they go ex-divi to compensate for the loss of the dividend?

I sometimes do it to reduce my wife's capital gains and instead take dividend income but that's because she usually pays CGT but isn't a HR tax payer.

mystic_trev

chucknorris wrote: »

I was thinking of applying for 5k in my name to possibly hold and 5k in my wife's name to sell.

I've applied for 5k. Whether I'll get the whole amount, who knows? The Public allocation may be well oversubscribed. If the shares are priced towards the higher end, they'll be eligible for the FTSE 100 review in December. Institutions will be forced to buy more to top up Tracker funds, this will probably push the price even higher, in the near term.

gadgetmind

I've gone for a few £k each for my wife and myself. I don't see this as a LTBH so have done it in our ISAs rather than my wife's unwrapped dividend portfolio.

My biggest worry isn't the RM's business model (parcels delivery is replacing falling letter deliveries) but their oppressive unions, which are a real drag on performance.

egor110

gadgetmind wrote: »

I've gone for a few £k each for my wife and myself. I don't see this as a LTBH so have done it in our ISAs rather than my wife's unwrapped dividend portfolio.

My biggest worry isn't the RM's business model (parcels delivery is replacing falling letter deliveries) but their oppressive unions, which are a real drag on performance.

How so?

Royal mail can only machine sort letters possibly a4 sized items in the future after that the only savings are made by slashing staff numbers.

However when you have to deliver everywhere 6 days a week how do you cut staff ? unless of course the government scrap the 6 day a week delivery and move to less.

melbury

I've decided against because they have such a strong trade union and will probably start striking at every tiff and turn.

egor110

You do know strikes don't just happen at the drop of a hat?

Members get a vote , votes are counted as to if staff are prepared to strike then a date is announced, or not if members vote not to strike.

Posties don't just get the hump and walk out.

chucknorris

mystic_trev wrote: »

I've applied for 5k. Whether I'll get the whole amount, who knows? The Public allocation may be well oversubscribed. If the shares are priced towards the higher end, they'll be eligible for the FTSE 100 review in December. Institutions will be forced to buy more to top up Tracker funds, this will probably push the price even higher, in the near term.

Unfortunately my wife has now became interested in buying some for herself but I think I'll stick to 5k anyway, ather than attempt to buy 10k for myself, but I haven't really made my mind up yet. It's interesting what you said about the ftse 100.