Royal Mail Shares

Rheumatoid

Snorth wrote: »

Thanks for all the help / advise folks - really appreciate - i sold at £4.5286 giving me a net of £266....well chuffed cos ive been tied up all day and missed this morning completely!

Right - What stock do i buy next?!!:)

(ive never bought indiv shares before - always leaving that to the experts in pensions / isa etc - didnt realise how easy it was - easy to make the transaction i mean)

cheers

As others have said be careful. Individual stocks are a risky business and I got out of them when the risks to my retirement pot were too high. RMG was worth a punt but I shall be putting any gains back in funds which spread the risk.

Freecall

Snorth wrote: »

Thanks for all the help / advise folks - really appreciate - i sold at £4.5286 giving me a net of £266....well chuffed cos ive been tied up all day and missed this morning completely!

Right - What stock do i buy next?!!:)

(ive never bought indiv shares before - always leaving that to the experts in pensions / isa etc - didnt realise how easy it was - easy to make the transaction i mean)

cheers

I really don't want to dampen your enthusiasm Snorth but the other respondents are correct, today was not 'normal'.

All investing is full of ups and downs, you have to ensure that the ups are either bigger or more frequent than the downs but more importantly you have to accept that sometimes a lot of downs come in a run.

Why not try investing in some funds first?

Good luck whatever you decide.

sabretoothtigger

IPO can be nice or it can be vastly overblown and hyped to the hilt prior to sale, like FB or a few others.
Generally the gov wants a clean quick sale, hence its often nicely favoured to small investors - in theory we owned RM anyway so of course we should get some

If people dont get why super large wealth funds and pension companies get to cherry pick then you dont get the stockmarket.
Its always like that, if you are rich enough to buy 10% of a company you can write them a letter demanding they give you a job on the board and get paid to read the company minutes

lvader

Freecall wrote: »

I really don't want to dampen your enthusiasm Snorth but the other respondents are correct, today was not 'normal'.

It was fairly average for an IPO.

Ologhai

lvader wrote: »

It was fairly average for an IPO.

It was fairly normal for a three-legged albino giraffe, but they don't come along so often, and if you want to fill a zoo, you need to start considering more typical animals.

aktivemac

SavingFish wrote: »

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).

I've seen a few people talking about reduced dividend being a reason to sell. Yes, if you bought today at £4.50 - your dividend yield would be lower.... but, no matter what the current share price is each private investor who was allocated 227 shares at £3.30 each through the IPO will still have a dividend yield equal to 6% on the amount invested, not the current price. So sell if you want to for the capital gain, but don't sell because dividend yield is lower!

Ologhai

aktivemac wrote: »

I've seen a few people talking about reduced dividend being a reason to sell. Yes, if you bought today at £4.50 - your dividend yield would be lower.... but, no matter what the current share price is each private investor who was allocated 227 shares at £3.30 each through the IPO will still have a dividend yield equal to 6% on the amount invested, not the current price. So sell if you want to for the capital gain, but don't sell because dividend yield is lower!

There's a sort of logic there, however: all else being equal, if you could find something better to do with your £4.50 per share than 4%, wouldn't you sell the RM share and do that other thing with the money instead? In that sense, the 4% is the thing to consider, not the 6%, wouldn't you say?

2010

Wouldn`t be surprised if it settled around the 400p mark by end of next week.
The next push will be for the Ftse100 in Dec.

Freecall

lvader wrote: »

It was fairly average for an IPO.

Well if Snorth is going to stick to IPO's then I guess so but it will rather limit the options don't you think.

:huh:

.

aktivemac

Ologhai wrote: »

There's a sort of logic there, however: all else being equal, if you could find something better to do with your £4.50 per share than 4%, wouldn't you sell the RM share and do that other thing with the money instead? In that sense, the 4% is the thing to consider, not the 6%, wouldn't you say?

Fair point - I hadn't thought through the full trade dynamics and yes you are right, all things being equal you could wrap your capital gains into the equation and re-invest at a lower yield for the same outcome.

The dividend yield on the original IPO shares is still 6% though...