"Weaker than expected parcel growth sent shares diving nearly 25% last year, a 22% underperformance of the FTSE 100". If indeed there is a lot of slack then once we get momentum upwards tracker funds working on a weighted basis will be buying RMG pushing up the price further. Perhaps contrarian investors will buy RMG shares and push up the price for the first three months of the year. "According to Brenda Kelly, chief market strategist at IG Group, a strategy of buying the ten ‘dogs of the FTSE 350’ at the beginning of the year and holding them for the first quarter has returned an average of 11.4pc since 2005". All my share holdings come under the category of 'dogs' so perhaps I can look forward to a prosperous three months, but I am not holding my breath!!!
RE: £13 ???
So no one officially (sic) gave a share prediction for RMG? 5555 as we say in Thailand. And, nope, I don't think that RMG has a beta of 1 either.
RE: £13 ???
That was Richard talking about £13. Based on wrong assumptions of rise of sp to £6. All wrong of course, hence I said that no one officially predicted such a price. If you go to QPP, WRN, you will see dreamers talking of £20-50 per share, but these are just dreams. Yes, RMG struggles to keep above £4 something. It follows FTSE mostly, so it is understandable that it dropped today. Not becasuse of the Chairman - it didn't seem to bother the market in the slightest.
Well there have been at least three events with possible material effects on the sp in the last week. The putative tie-up with Post -NL, the trading update with more parcels but no real revenue increase and today's announcement of the Chairman standing down later on in the year. So nothing mysterious about recent sp movements IMHO. The overall quantitative effect of it remaining in 30% public ownership is of course a known unknown.
RE: £13 ???
Apologies everyone the figure was indeed 1354p (and not 1351). The original projection was for January 2015 but later this was moved to the year 2022. Of more immediate concern to me is the fact that the price has not been able to keep above 440p. I can't understand why it dropped suddenly from 450p+ and on a rising trend last Monday. Can it all be due to leaks that the Chairman wanted to leave?
Indeed Spottie there was one who ranted a lot who did predict £13 for January. I love Thai food however even with my profits when I suggested to the wife I could go to Thailand her words should not be repeated as quite frankly I was shocked !
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