The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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Shorts Increase, now 2.93%
I get all that,but still all parcels need to be delivered,our local dpd drivers are all going electric shortly,I hope Royal Mail speed up the electric process and ditch diesel vans.
Not anytime soon.
But there is an easy short term solution that will help considerably decrease the use of the road fleet. Electric trains!
As always, internal politics (backed up by the CWU's not inconsiderable muscle) has a big bearing on all of this.
The Royal Mail drivers, for the most obvious of reasons, balk at any suggestion of moving more mail onto the rail track...but like it or not...it's coming...and coming very soon. Especially when that Daventry Hub is up and running.
Warrington Hub is the size of four and a half football pitches. Daventry, considerably bigger -- tens times size of a football pitch!! And the new Daventry hub has a direct link to Warrington without needing to use the road networks. How? Because, just like Royal Mail's Warrington Rail Terminal, Daventry, too, has its own separate platform joined to the side of the building. A direct link straight up the Main West Coast rail line from hub to hub. In other words: when both hubs are up and running, that rail line will be transporting mail both ways from between Warrington and Daventry, all pulled by an electric train...Southward mail going South...and Northward mail going North.
Bit by bit, slow but surely...things will start to drop into place. But, as is usual with RMG...it wont be done with the greatest of haste. More the pity.
One thing I would be trying to implement more quickly at this point if I was in charge,is the move over to electric vehicles a lot more quickly….even if it meant not buying back more shares as quickly.
Question. If you buy 1500 shares in any company for £4.00 a share and then the share price drops to £2.75...is anyone going to call you an idiot in 2 years time if the share price is up at £7.75 a share?
Doubt it.
Bought two small tranches over the last several days at £3.70 and 3.57.
Again, do I really give a flying f..k if the share price drops to £2.75? Mostly certainly not. I will just buy more!
And if the s.p totally collapses...I will do what I have done before with this and other stocks. Borrow another £10,000, add to it, and buy a boat load of em!
No one is ever going to convince me, that, with all the land and buildings Royal Mail own (a lot of it in high value locations) this company is ever in danger of going bust or will cease to trade.
As for the pay rise. The CWU always initially goes in high...but will no doubt settle for one more hour off the working week plus a couple of percent.
Value it as you will...but at these prices (and yes...it could fall significantly lower) this company is still an absolute steal.
And you won't convince Daniel Kretinsky any differently either.
Credit Suisse have had a huge downer on RMG from day one... I did hear it's because they weren't selected to be one of the chosen few to be involved in the IPO and have been sulking ever since.
Letter revenue, for 9 months to december 2021 was £2.8 billion compared to £2.566 billion in 2020 over the same period.
Royal mail are increasing the price of 1st class stamps by 10p to 95p, and second class stamps by 2p to 68p. If letter volumes are sustained this will help cushion the impact of labour and fuel costs. The increase of stamp prices takes effect on 4th april 2022.
CS are saying that RMG is over-priced.
The forward PE (based on the consensus broker estimates) is 5.9, while UPS is on 16.4 and FEDEX is 9.9. Shoudl the PE be 2.5?
Credit Suisse are a total joke.
Liberum's comments regarding 'Royal Mail not being able to raise prices due to inflation' are clearly wrong. They have just raised stamp prices by 10%. Most of these brokers are idiots and just adjust their target as a share price moves. I worked in one of those places for 20+ years and it's laughable how they come up with their price targets - a dusty old DCF spreadsheet int which they put guessed values. As Warren Buffett has said, it's less reliable than astrology. You're better reading tea-leaves.
Increased again to 2:32%^:%
concede defeat to Ukraine maybe.
But NATO ??
I am continuing to day trade this at present at least until the 15-20p daily swings stop.
better day for RMG , nice
Anger "I think it’s probably wise to be in as much cash as possible"
Hmmmmm, maybe not the case with the Ruble.
Ruxi "posting on an up day Redceo"
Yes indeed, let's have more.
So according to them the business is now apparently worth virtually half what they valued it at only 9 months ago, despite the fundamentals remaining more or less the same.
Last year the big trading update was March 10th. I suspect they know roughly where the numbers to March year end are already. Don’t forget the LTM or last 12 month run rate of operating profit was … over £1bn (interims + H2 last year). Yes headwinds going forward (that customers will pay for) BUT I think they will let us know this years profitability sooner rather than later. As I have stated before I really hope the union gets a good deal for employees, it should AND the company can afford it whilst still looking after its shareholders. The valuation remains fundamentally totally wrong BUT the cash flows will speak for themselves ultimately !!!
LinkedIn RMG released just now a video re 100 days to go until the new centre opens !! 800,000 parcels a day. I have no idea of the economics of site from a cost reduction perspective but I am guessing significant ! 4.5 football pitches. Looking forward to the next video instalments
Arsenal. Apart from a natural human response to their suffering. My other half is Ukrainian.
Re pricing … I would expect large companies with big market share to have more power on the pricing - a fact that is generally helping the larger players in industry across the piece at the minute
Redceo for once I’m in total agreement with you about Putin I hope your right a horrible dictator , you must of made a fortune with the SP of RMG well done for your loyalty !
Any good company covers there cost to make money,expect big increases in postage charges right across the board…everything and anything will now have an excuse to be put up in price,the end consumer will end up paying the brunt,expect Royal Mail to still do very well:-)
Oops .... unfortunately you're right. However I guess the key figure is the gap between increased wage costs and increased prices passed on to consumer....I suspect this number wouldn't justify a billion in market cap reduction