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Thx Mr Oligarch, I hope you are right, when RMG was 140p the world was ending, RMG was without leadership and no one had a clue whether it would make a profit or a loss and back then it had real debt … - until everyone realised RMG was a strategic asset and we got guidance that actually if run well (and that includes having a good union relationship) it could be a seriously good business and seriously profitable. With one year of £700m ish operating profit net debt (ex leases) has moved to net cash in a major way. Importantly on the hand, private equity were only looking at one thing last year at 140p price time , which was saving their own portfolio businesses and for most refinancing almost every one. New basket case acquisitions for PE … were not on the menu !! IF IF you believe that RMG and GLS can even CONSiSTENTLY generate £700m + profits and even more (I think £1bn +) and assuming the cash is really there, then value will be what it will be BUT £10bn not crazy (the comparables are worth more) - IF you believe that PE or trade will buy it has massive upside. It is even more fragile a situation as if the biggest holder of 20% decides to sell his stake - then someone is 40% down the road to control (51%). If you don’t believe the long term profitability then don’t worry Re PE.
I checked this am - RMG has something like a 30% or 35% share of uk parcels. Amazon 15%. Other big names (FedEx, UPS and DPD) all less than 10%. (Top 5 are 75% of the UK market). If I were those business (ex Amazon) I would be after a stake or to buy RMG on the cheap. Look at BT (Deutsche Telekom has c 25% and now the new Frenchman Drahi has 20% on top !!). Don’t think that can’t happen more to RMG. I repeat my question for a multi £bn company - show me value especially in structural growth anywhere close to RMG. Sorry for waffling.
I understand this world of finance I know nothing about the Royal Mail really runs. I enjoy learning on this chat board about those who know about how the Royal Mail works. Let’s help each other.
Commonsense, if PE (or Vesa) wanted to buy RM then why didn't they do this when the SP was in the £1.40 range last year? They could have picked up RMG for a song and hived off GLS as a separate entity leaving RM to flounder?
No, I believe that PE is very wary of RM because of the built in mandatory obligations and the unionised workforce.
Ponty. My pleasure.
Thankyou Redceo, explanation from yourself most welcome.
Ponty. Important to understand the ramifications of a deal going against the belief of a reducing share price sufficient to create a profit after expenses. However it may result in the exact opposite. Therefore not wise to consider unless you fully understand the system pros and cons.
Investors that want to try and profit from an expected decline in a share price may do so by taking a short position. However, there is no way to predict share prices with certainty and short selling could result in investment losses if the share price rises after it is sold short. Shorting stock or another security is a more advanced trading strategy. Before taking on a short position, beginner investors should do their research and ensure they’re in the right financial position.
Key Takeaways
A short position is created when an investor sells borrowed shares in an effort to make a profit if the share price drops.
The investor must later repurchase the shares to return them to the brokerage they were borrowed from.
The investor profits if the share price falls, but loses if the share price rises.
The investor must have a margin account in order to short sell and could face a margin call if the share price increases. Further info available online if your interested.
Thanks for explaining it to myself, and yes my workload was just about manageable today, I will also say though, that we are getting very busy, I personally believe Christmas has started.
Yet another busy day out on delivery for me today,
Would someone be kind enough and explain to myself what shorts, or a reduction in shorting means, I would much appreciate all information.
shorts closing now - very nice they will soon be scrambling to close as we fast approach results
Marshall Wace
0.59% -0.01%
19 Oct 2021
Total 1.11%