Coming back into our office now. Obviously can't cope delivering their own with their fleet of self employed white van men, some of them leaving parcels on doorsteps in full view in the rain sometimes. Back to quality now.
I don't think investors will be so apologetic next time around. Shareholders reacted positively on rather poor results this time, but if the next time RM says they are sustaining current levels of profitability and dividends only through cost cutting measures rather than through growth then I think you will find the share price will go down rapidly towards near the flotation price.
I see too many players in the parcels market that any one player can't have a really big market
You used to see so many RM vans delivering, these days you rarely see them. You mostly see DPD and other vans
I see letters business going down fast because it was for an era when we didn't have internet
RM could face prospect of another big retailer dropping them for another courier (on a whim) if prices are not favourable
So as you can tell, RM faces extreme challenges ahead, with upside limited, but downside potential cannot be underestimated
I would suggest with some degree of professional and inside experience that a trained individual would not find it difficult to scrape the fat off Royal Mail walls with a shovel before embarking on a detailed study.
Long-term potential at Royal Mail after cost savings The medium-term cost saving targets at Royal Mail (RMG) are no surprise for Investec and there is still long-term potential to be had.
Investec analyst Alex Paterson reiterated his ‘buy’ recommendation and target price of 580p on the shares, which rose 1.6% to 489.4p yesterday.
‘For those familiar with the history of privatisation in the UK, the latest £500 million medium-term cost reduction targets will come as no surprise and will, we believe, be exceeded by the long-term potential,’ he said.
‘We are also confident the rate of capacity growth in the parcels market will slow over the next two years, resulting in better prices.’
Paterson said Royal Mail had made ‘significant progress on efficiency over the last five years, with volume and revenue growth considerably exceeding the growth in costs’ and expected ‘cost savings will continue to be found for long periods of time’.
In one week between 17th and 24th November broker ratings swung between £4.00 and £6.10, this by so called professionals. Do your own research, go with your guts and remember what ever is said on these boards will not affect the share price one iota. The most important point, for brokers read bull****ters
I've given up with him now, he does make some valid points about the future of the business although they're nothing but conjecture and speculation as nobody can predict what will happen regarding the competition, the regulator or the home delivery business as a whole. But his obsession with the ''letters are down'' mantra is quite baffling.
He's clearly got some agenda to go on such a one man crusade to talk the SP down, I'm guessing he's holding a short position or else he's just invested his life savings in one of our competitors!
Why ARE you posting on here anyway. Best ask your postie (if you ever get anything delivered, you seem to send allot of emails!) how busy we are. Unless it's a doddle of a walk you'll get a truer picture. Atb.
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