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Royal Mail Shares

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  • Ologhai
    Ologhai Posts: 239 Forumite
    Part of the Furniture 100 Posts
    Cotta wrote: »
    Is it now too late to buy Royal Mail shares?

    No: they'll be available to buy (and sell) from next Tuesday! :D

    (Non-flippant reply: the application for RM shares closed at midnight on the 8th.)
  • BarleyGB
    BarleyGB Posts: 248 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    edited 9 October 2013 at 10:31AM
    BarleyGB wrote: »
    If many people have £750, £1000 allocated is it really worth it to sell in the early days for a 10-20% return less dealing charges?


    UNQUOTE


    This has to be the silliest quote this year. Of course its worth selling for a 10-20 percent return compared with what the money would earn held in a savings account.

    :rotfl:


    I made no mention of relative return compared to a savings account.

    I was thinking along the lines of whether its worth the effort to chance making £50 considering the risk involved. Is the average safety conscious joe public who holds money in savings accounts prepared to take the risk of buying during the IPO for a potential 10-20% return on day one given it could equally be a 10-20% loss?

    If youre going to take the risk it makes more sense to be in for the longer terms whereby equities nearly always beat savings accounts. The RM divi alone will beat a savings account.
  • latecomer
    latecomer Posts: 4,331 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    BarleyGB wrote: »
    The RM divi alone will beat a savings account.

    True but if the shares drop significantly then the dividend isnt going to make a difference to Joe Public who wants to make money short term and doesn't understand the principles of investing in shares.
  • silvercar
    silvercar Posts: 49,587 Ambassador
    Part of the Furniture 10,000 Posts Academoney Grad Name Dropper


    I made no mention of relative return compared to a savings account.

    I was thinking along the lines of whether its worth the effort to chance making £50 considering the risk involved. Is the average safety conscious joe public who holds money in savings accounts prepared to take the risk of buying during the IPO for a potential 10-20% return on day one given it could equally be a 10-20% loss?

    General advice is never to risk money you can't afford to lose.

    If youre going to take the risk it makes more sense to be in for the longer terms whereby equities nearly always beat savings accounts. The RM divi alone will beat a savings account.

    It isn't a decision you have to make instantly, you can see what the share price is doing then decide.
    I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
  • tuk
    tuk Posts: 113 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    .....take the risk of buying during the IPO for a potential 10-20% return on day one given it could equally be a 10-20% loss?
    Surely the probability either way is not 50/50? ...do we have any examples of a government backed flotation making a loss on the first day?
  • MyOpinion
    MyOpinion Posts: 35 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    Just noticed that this morning that my x-o account is showing " ROYAL MAIL APPLICATION" in my statement details, I was a bit worried that I didn't get any acknowledgement.
  • Perelandra
    Perelandra Posts: 1,060 Forumite
    MyOpinion wrote: »
    Just noticed that this morning that my x-o account is showing " ROYAL MAIL APPLICATION" in my statement details, I was a bit worried that I didn't get any acknowledgement.

    Thanks for pointing that out!
  • Cotta wrote: »
    Is it now too late to buy Royal Mail shares?


    I noticed Galvan is now trying to raise business by selling 'virtual' shares in RM or a CFD. The grey market is open for trading and they are prepared to sell an interest to retail investors.

    This is highly risky activity more so then shares, most people should just wait and probably the strike rumours will bring the price of real shares down even if you missed the IPO I dont think that will be the last chance
  • 2010
    2010 Posts: 5,467 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    What are they striking for?

    The RM being sold off
    well it has been.
    The free shares
    well they took them.
    The £300 lump sum if they don`t strike
    well keep working.
    The 8% pay rise over three years
    most people will be lucky to get 1%.
    Their now guaranteed public sector pensions
    talk about turkeys voting for Christmas.
  • 2010 wrote: »
    What are they striking for?

    The RM being sold off
    well it has been.
    The free shares
    well they took them.
    The £300 lump sum if they don`t strike
    well keep working.
    The 8% pay rise over three years
    most people will be lucky to get 1%.
    Their now guaranteed public sector pensions
    talk about turkeys voting for Christmas.

    It just looks like petulance from the union. Everyone else has to accept pay freezes.
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