Hello Share Managers. There’s less than a fortnight to your cool yule. But there’s still time for a Santa rally. Except that there won’t be one this year. I can hardly believe I’m saying this but there isn't a bullish thought in my old body at present. Here’s why.
Where do I start with the recent headlines about shares in the Royal Mail (RMG)? We certainly could start with the observation late yesterday that “Postal strike looms as Royal Mail workers back walkouts in pay and jobs row”. Alternatively, we could look at this morning’s observation about first quarter trading of “revenue down 11.5% year on year…reflecting weakening retail trends, lower test kit volumes and a return to structural decline in letters”. And we could even talk about the observation - also out today - that “Royal Mail threatens split after name change to International Distributions Services”. Or we could just talk again about ANOTHER fall in Royal Mail’s share price!
Back in November last year I wondered if I was going to choose Royal Mail (RMG) as a new buy for 2022. But when it got the end of December the share price had risen from about 430p to approximately 520p and hence I was happy to keep on ignoring it. So why did Royal Mail shares react badly to its numbers last week, meaning their year-to-date fall is now nearly 40%? It is a good job then that I decided to ignore the share late last year…but is it a potential buy now?
Hello Share Pickers. You've probably noticed the number of parcels arriving at yours and your family’s homes have grown considerably. The Royal Mail (RMG) can thank the pandemic for this boom, it’s safer to shop online these days. The parcel craze has saved the Royal Mail because letters are so old hat now. Email has largely taken over.
Hello, Share Ramblers. Royal Mail (RMG) had been a steady disappointment for this family ever since it went public but more recently it’s been in a bull run and the latest numbers show the rally is likely to continue.
A few years ago I did own some shares in Royal Mail (RMG) on the basis that (1) it could be managed better as a private company rather than a state owned one and; (2) its property ownership in places such as the Nine Elms site in south London offered it the scope to even further improve its alright net cash position. Anyhow, I made a bit of money but lost interest in the shares at/around the 600p level in 2018. For many obvious reasons (fewer letters, worker angst and growing competition in the parcel business), the Royal Mail had a shocking couple of years after that, meaning by June last year I noted that its new chair Keith Williams had a big job going forward. And he certainly did but - as shown by the near tripling of the share price since - I doff my hat to him.
Hello, Share Pleasers. It’s hard to see how Royal Mail (RMG) could make a mess of things and not benefit from a boom in parcel sending. This family’s held its Royal Mail shares since privatisation yonks ago and at several stages along the way I’ve been wringing my hands. Not any more. Recovery and beyond has happened over recent years and has been accelerated by the bug.
Hello, Share Stitchers. Royal Mail (RMG) currently has a P/E of about 10. That’s half my usual average and suggests the stock could be a bargain. Remember gang, that this is a company which benefitted hugely from the pandemic. When you can buy few non-food goods any other way, why shouldn't the mail bags swell.
Hello Share Trackers. This family has held Royal Mail (RMG) shares since the privatisation in 2013. And I don't think we have faced better prospects for the stock than we do now. The pandemic has helped with more people buying online, as well as sending parcels to friends and relatives they can no longer visit. But even before the virus, growing numbers were buying stuff over the net.
Hello, Share Collectors. An outfit which has continually disappointed this old punter shows signs of at last bucking up. And given the surge of interest in online selling, that’s not surprising. Royal Mail (RMG) has just reported that revenues rose by a fifth in the third quarter. A record number of parcels were delivered home and abroad...
