Member Info for RoyAlMail

Usually an update mid July so hopefully a mini rally before and then some good figures. Within expectations would be ok for now.

No problem OilGarch, if my memory serves me well someone from UK brought a court case in the European court a few years back and won. CWU raised the issue then with Royal Mail and it has been ongoing. There's been a couple of more recent cases in UK and that's what's got the ball rolling. I don't know what Royal Mail and CWU have agreed regarding back pay but I heard that when the last pay deal was being negotiated an under the table agreement was made that CWU wouldn't be too tough with it. Obviously your union can make an agreement on your behalf so even though you may be entitled to 10 years back pay it wouldn't be in anyone's interest to insist upon it.

Annual leave average pay is UK law, everyone who works and does overtime should get it.

Divi at least 92p over next 5 years 2 months. Probably slot more with bonus divis and return of the progressive policy.

They would have to buy back at the issue price of £3.30 imho. But even if your right that would still give a nice profit at today's price because of the substantial dividend.

Free warrants.

They don't have to lower the nominal value to raise money unless they are raising it below the current nominal value, which the announcement indicates. The only question is how much below the nominal value? It seems obvious to me but I'm not always right. I have no skin in the game now so good luck.

Then the article is misleading as it says "expected to increase to 5%".

Also postal price increases more than offset the pay rise and hour off.
https://www.royalmail.com/prices2019

The Jefferies note is dated June but the pay rise was in April so they are not still expected to increase by 5% as the note implies. Even including the pay rise it's still only 4.6% so perhaps we can all go back to school together.

They had negative productivity first half but Rico managed to turn it around to +2% second half which I expect to continue. One hour off of 38 hours is 2.7% not 5%. Back to school for Jefferies.

You are wrong. Short term it looks great . 32p divi for a start. Revenue's are growing and productivity is much better than first half last year. Also they had one off costs of £233m in the half year results which won't be there next time. Short term, when half year results come out they will show a massive improvement.

In my opinion you do have to worry. The nominal value is the lowest price that the company can issue shares at. They will be reducing that value to a thousandth of what it is now. The usual reason for doing this is to issue a large amount of stock at a much lower share price, possiblity a thousandth of the price meaning that every thousand pounds that you have invested would be worth just £1.

Also saving on holiday pay, sick pay and any shift allowance.

It's very likely that they can make some improvements and the SP will be multiples of todays price but if after 5 years the SP is still the same and they only pay the minimum 15p a year divi, that's still a 44% return on your investment. Where else can you get that?

Usually a trading update the week before ex divi so I would be a buyer before then if I hadn't already bought my fill.

Rico is pilling in.

There isn't an extra 20m.

Buying at this price is a no lose situation. worst case scenario is the SP drops to 180p for a 14 months and you get your 32p divi and sell up. That still gives a 6% return on your investment. Or the price hovers around 200p and you sell up, that's a 16% return. But with good news the SP doubles and you get a 116% return.

It's unlikely to finish above 137p with it becoming ex divi.