Royal Mail Shares

Klambo

BBC One O' Clock news report that there are 8 buyers to every seller, so demand is high, likely due to those who lost out in the initial allocation.

Still not sure whether to sell or get the 6% dividends.

SavingFish

Klambo wrote: »

Still not sure whether to sell or get the 6% dividends.

Well, the 6% dividend is based on a share price of 330p.
Assuming my maths is correct, at 450p it's more like 4.5%.

Hence I'm selling and sticking the money in an equity income index tracker instead (which also has a yield around 4.5%, but spread across a lot more companies).

I am not a professional though (aka: I may be making a stupid mistake, don't invest based in my advice).

cashvoid121

I applied for shares using the nominee scheme on the government website (it was last minute). Assuming I now have £750 quid's worth, at the original price, how can I sell them right away?

Would it be wise to do so?

2010

I`m still undecided, hold or sell.

I still think they`re worth holding because of the divi and there entrance into the FTSE 100 in Dec.
The other thing that may happen eventually, and I`ve not seen it mentioned on any of the threads on these boards,RM must be an ideal candidate for a takeover bid.

cashvoid121

To answer my own question for anybody else wondering the same thing:

"Trading started on Friday and some private investors have already sold their shares. However, some will be unable to do so until Tuesday 15 October.


If you applied at gov.uk/royalmailshares you cannot deal in the shares until you have received your formal "share account statement".
If you bought through the paper application forms made available at the Post Office, the government's intention is that you will hear by 21 October. Again, you cannot trade the shares until you have been notified of the allocation.


So what happens then? The shares bought through the gov.uk site will be held in the Royal Mail Nominee Share Service, and the government has appointed Equiniti to offer a dealing service.


Longer-term investors can hold their shares with Equiniti, and receive dividends into their account that way. If they wish to sell, the current standard dealing charges are 1% of the value of the transaction, subject to a minimum charge of £17.50 (if dealing online), or £25 (if dealing by telephone, at 0845 268 0282).


But the cheapest way to sell for most small shareholders with just the minimum allocation will be through a temporary telephone and postal dealing services, again run by Equiniti, where the charge will be 0.75% of the value of the transaction, subject to a minimum charge of £7.50. Full details of these services will be sent to successful applicants after the offer. It is understood that this temporary low-cost dealing option will remain open until early November."

Quoted from The Guardian newspaper.

cashvoid121

Although that does leave open the issue of how and when I will receive my "Share account statement"

StevieJ

Klambo wrote: »

BBC One O' Clock news report that their are 8 buyers to every seller, so demand is high, likely due to those who lost out in the initial allocation.
Still not sure whether to sell or get the 6% dividends.

But dividends are only 4.5% at the current price. although the 'expert' on the BBC just now didn't seem to realise that.

MABLE

Nath4n wrote: »

I know hindsight is a wonderful thing, but wishing I'd used an online broker to order instead of the gov website. I would have liked to have traded out conditionally at least a few of my 227 first thing this morning, waiting until Tuesday (and watching the price slowly slide down) is slightly torturous

I sold out this morning at £4.51 with my online broker Barclays. However I think it is very unfair that some people could sell now and others like yourself have to wait until Tuesday. Hardly a level playing field.

Klambo

Dangerous_Dave2k wrote: »

I applied for shares using the nominee scheme on the government website (it was last minute). Assuming I now have £750 quid's worth, at the original price, how can I sell them right away?

You can't sell them until Tuesday Oct 15 when they officially float on the stock market.

If you bought via a broker like Hargreaves Lansdown then you can trade today.

AndyBSG

For those who bought their shares through the stnadard https://www.gov.uk/royalmailshares link who are wondering how they sell them, i've just phoned the helpline.

The operator confirmed that sometime Monday night I will receive an E-mail with details of how many shares I got and how much I paid(although I think everyone knows they got 277s share at £749.10).

It will also contain details on how to sell the shares so that you can sell them at your leisure once trading opens.

She also confirmed that any money you are owed, if you applied for more than £750 of shares, will be refunded on Monday.

Let's just hope that Equiniti are better equipped to deal with the avalanche of sellers than Hargreaves Landsowne have been...