Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.

Don’t Let Your Bursting Christmas Post Fool You - Royal Mail May Not Deliver a Rosy New Year.

By Malcolm Stacey

11 December 2015 21:07

More:

Hello Share Sprinters. I trust you made a packet out of Royal Mail (RMG) when it was privatised. I sold my shares fairly quickly, and did very nicely. My wife held onto hers and is still in profit.

Already a member? Sign in

• All premium articles

• Tom Winnifrith’s Bearcast

• Access to all the entire nearly 13 year archive

• ShareProphets Daily Newsletter

Cancel any time

This area of the ShareProphets.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ShareProphets.com. ShareProphets.com does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ShareProphets.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ShareProphets.com and is not intended to be relied upon by users in making (or refraining from making) any investment decisions.

Comments

Phil

12 December 2015, 04:37

I agree

Dumping half your work force on the dole, trashing your service levels and doubling your prices, dumping the existing debts on the tax payers and your great big pensions black whole on the taxpayer as well does not constitute a company recovery, just a wealth transfer from the many to the few.

As I have said so, it must show somewhere and it did. It showed in the list of preferred shareholders. Qatar, cos like it needed the money and JP Morgan, even the Americans sued the guts out of JP Morgan it is so corrupt.

The public were carpet bagged Vince(the face)Cable picked up the tab and gave us all the moment of the year, his face when he was kicked of his perch was a picture.

Royal Mail isn’t a bargepole stock, but it will need a better board and in my view a better recovery specialist than Moya Greene. I’ll give her credit for getting it this far, but there doesn’t seem a coherent vision for the future.

There is a hopeless underdone of its assets or expansion. It is tied up with even more regulation, a useless and mind bumming price structure, the queue is out the door, posting is more expensive than it used to be, and using the RM can be a very unpleasant shopping experience. The instance of delivery failure is through the roof, loss compensations have been slashed, Profit increases to Great Britain plc is more than matched by SME losses, as what was one of the best world wide postal services. Now 3rd world service levels, 1st world prices. Not good.

Nonetheless it needed to be privatized, Canada Post chose to stay in the pubic domain, the consequence to Canada ended up worse.

History shows to shareholders that pretty much all privatised companies have an initial gain, but go through a time of fails and inertia as the politico appointees are fessed off by shareholders, and are replaced by shareholder choice who are a better judge of good business players. Royal Mail will have it’s day, but the limitations of Moya Greene and her board will have to be played, then it will be a good investment.

All my own opinion of course
DUCK AND DIVE

12 December 2015, 05:36

I used to think the same until I realised that nobody loved me.