Jump to content
House Price Crash Forum
Harry Monk

Big Post Office SharesThread

Recommended Posts

Hi, have done a search and can't find this covered, apologies if it has been and mods please merge if so.

Is it worth trying to get hold of some Post Office shares when they are sold, particularly in terms of selling them again in the near future at a profit?

Share this post


Link to post
Share on other sites

Royal Mail have lost a lot of the lucrative package deliver to competitors. As a previous poster commented, letters are likely to be a dwindling trend over the coming years.

A close friend works for Royal Mail, and from his experience after 14 years service, the management are an absolute disgrace. How they avoid constructive dismissal cases being brought against them is beyond me.

Whether these are representative of the Company as a whole, I am unsure.

Where a Company has poor management, poor employee engagement is typically a poor investment IMO.

My view: stay well clear.

Share this post


Link to post
Share on other sites

My dad is a Post Office pensioner - given all the contributions he made over his 35 year service to make it what it is today I am surprised he isn't getting free shares! :D

Probably not a good investment - and Labour opposes the sale which will no doubt depress the price.

Share this post


Link to post
Share on other sites

Hi, have done a search and can't find this covered, apologies if it has been and mods please merge if so.

Is it worth trying to get hold of some Post Office shares when they are sold, particularly in terms of selling them again in the near future at a profit?

If it was a 'free money' privatisation it would have been flogged off years ago.

The fact that the government have held onto it for so long tells you all you need to know about its long term viability

The property assets may be worth something and I suspect that is what might be attracting some investors

Edited by stormymonday_2011

Share this post


Link to post
Share on other sites

The property assets may be worth something and I suspect that is what might be attracting some investors

Looks like about £1.6 Bil in freehold and £900mil ish in leasehold.

D

Share this post


Link to post
Share on other sites

Royal Mail have lost a lot of the lucrative package deliver to competitors. As a previous poster commented, letters are likely to be a dwindling trend over the coming years.

A close friend works for Royal Mail, and from his experience after 14 years service, the management are an absolute disgrace. How they avoid constructive dismissal cases being brought against them is beyond me.

Whether these are representative of the Company as a whole, I am unsure.

Where a Company has poor management, poor employee engagement is typically a poor investment IMO.

My view: stay well clear.

mirrors my experience. there's going to be good and bad, and competent and incompetent workers and managers - tends to be a higher percentage of bad managers though :rolleyes:

yes letters are dwindling but I still get close to about a thousand to deliver most days, plus leaflets, and an evering increasing amount of small packets and slight increase in larger parcels.

would knocking off one day of delivery a week, or even have every other day delivery solve/make it hugely profitable?

Share this post


Link to post
Share on other sites

I think the share offer will be a success. There'll be lots of small private investors moving cash out from under the mattress and the government can't afford to get egg on it's face it will be fully underwritten first week of trading. For that reason I have registered and expect to make a quick £1k or 10% long term not great though.

Share this post


Link to post
Share on other sites

Hi, have done a search and can't find this covered, apologies if it has been and mods please merge if so.

Is it worth trying to get hold of some Post Office shares when they are sold, particularly in terms of selling them again in the near future at a profit?

Most of the replies have not answered your question, because you are considering buying them "in terms of selling them again in the near future at a profit".

Probably they were correct to answer a different question - of whether you would be investing in a profitable business.

The answer to your question is "it depends on the price the shares are offered for". If the shares are offered at a reasonable discount to their true value, you should get a reasonable uptick. If there is considerable institutional demand, we should see an uptick.

If it goes straight into the FTSE100, tracker funds will need to buy it, so wthere ill be plenty of demand initially.

Share this post


Link to post
Share on other sites

No way José.

Letters are dead, parcels are not but Royal Mail has too much competition in that area.

Today, wandered into town and once again a huge queue outside the sorting office. People trying to collect their undelivered parcels. The downside of internet purchases. Buy online to avoid a trip into town and then end up spending more time in town to collect your purchases. Might as well go to Argos.

Probably a business opportunity there somewhere, but damned if I know what it is!

As for whether to buy Royal Mail shares, I'll probably consult the HPC contrary indicator.

Edited by aSecureTenant

Share this post


Link to post
Share on other sites

Today, wandered into town and once again a huge queue outside the sorting office. People trying to collect their undelivered parcels. The downside of internet purchases. Buy online to avoid a trip into town and then end up spending more time in town to collect your purchases. Might as well go to Argos.

Probably a business opportunity there somewhere, but damned if I know what it is!

As for whether to buy Royal Mail shares, I'll probably consult the HPC contrary indicator.

that's the trouble with living in a large built up area with one pick up point, saturday would be a nightmare and i'd try and avoid picking up then at all costs. something that has needed looking at for many years now, cannot be good for customers or staff.

you can arrange to have it re-delivered at a later date, no good though if you want/need it asap.

..can also apply to collection in many cases for someone picking up a parcel from nearest non RM/PO depot, heard about many people having to drive a 50+ mile round trip to pick up something important - and they live 800metres from their RM depot, obviously this can work both ways. might of saved a fiver in postage but spent a hour+ of their time and a fiver+ in fuel.

Share this post


Link to post
Share on other sites

Too late, Collect Plus got there before you!

yes, collect plus a good company.. looking at their prices though haven't they gone up in the last year or so? i'm sure i sent a near 10kg parcel a couple of years ago for about a fiver, now nearer a tenner?

Share this post


Link to post
Share on other sites

Most of the replies have not answered your question, because you are considering buying them "in terms of selling them again in the near future at a profit".

Probably they were correct to answer a different question - of whether you would be investing in a profitable business.

Yes, this is true, I am not looking to own them long-term, just in "flipping" them if the share price rises sharply over the day or two after they are floated, maybe turning £5,000 into £6,000.. And this depends on whether the market thinks they are being offered below true value. So the essential question is "what is the share price likely to do in the first few days?"

Share this post


Link to post
Share on other sites

yes, collect plus a good company.. looking at their prices though haven't they gone up in the last year or so? i'm sure i sent a near 10kg parcel a couple of years ago for about a fiver, now nearer a tenner?

yes, prices of C+ & My Hermes went up approx 20% a few months after Rm price risei Apr. Still a fair bit cheaper than RM

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   223 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.