RE: Useful Read12 Nov 2019 18:12
The writers conclusion is similar to comments made here. Although he uses better language and doesn't appear to be a to$$er unlike some here :-))
I made the point recently that the imminent half-year results to September will move the SP good or bad. He is saying the same. He also does not recommend sell but avoid. Interesting that.
His points :-
Half year will confirm whether or not Royal Mail has financial substance to offset a disruptive Christmas. Otherwise, there's a real risk to the turnaround plan and underlying value should industrial conflict fester.
But it puts the stock in focus for alert traders given "steady eddy" numbers plus the prospect of any strike resolution prompting short sellers closing positions. Alternatively, if the situation gets increasingly bitter, then it's not too late to open a fresh short. On an investment view, I do not capitulate to outright 'sell' unless you are risk-averse, but overall currently I rate the shares: Avoid.