The latest Investing Matters Podcast episode with London Stock Exchange Group's Chris Mayo has just been released. Listen here.
It's good to see some positive sentiment around this stock
I think for the foreseeable future it will stay in the 2.50 to 2.90 range until the macroeconomic situation gets better and the company starts to make a profit and starts to return excess cash back to shareholders
Barclays raises International Distributions Services target to 265 (250) pence 'equal weight'
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JPMorgan raises International Distributions Services target to 300 (220) pence - 'neutral'
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UBS raises International Distributions Services target to 296 (240) pence - 'neutral'
Https://www.hl.co.uk/shares/shares-search-results/o/ocado-group-plc-ordinary-2p/share-news
Ocado is up nicely, let's hope for the best on Thursday
£4 will depend on 3 factors
1. What progress has been made at RM
2. What guidance they give
3. When they will restart the dividend, and at what level... I think it was 7p intern , then 13 p total 20p...plus 20p special divi
Https://www.theguardian.com/business/2023/jul/10/royal-mail-cuts-hours-at-half-its-customer-service-points
Looks like there is a real effort now from management to cut costs
Hopefully these efforts will lead to improved profits
Https://www.thetimes.co.uk/article/the-czech-sphinx-speaks-daniel-kretinsky-on-the-future-of-royal-mail-and-sainsburys-hm2l32sm3
Of course he would say he has not plans to take over royal mail....
Kretinsky makes clear he has no intention of bidding for Royal Mail, where his Vesa Equity vehicle owns more than 25 per cent, or Sainsbury’s, where it has 10 per cent. “We are interested to see whether a company has the capability to generate sufficient free cashflows, which means you create economic value,” he says. “There may be companies where you can be a happy 10 per cent shareholder for 20 years.”................
On Royal Mail, he is explicit about the benefits of a stock market quote. “For multiple reasons — the heritage, the spirit of the company — it’s good if every British citizen can invest in the shares,” Kretinsky says. And he doesn’t believe that splitting the profitable GLS from the troubled core business would be a good idea. “The money that Royal Mail would lose if it doesn’t adapt itself to the new reality is much greater than anything GLS can ever earn,” he says. “It’s very simple: both Royal Mail and GLS have to be successful companies.”
Royal Mail is edging towards a deal on pay and conditions with the Communication Workers Union (CWU) after a series of damaging strikes that pushed International Distributions Services, its parent company, to a £748 million loss last year.
Letter volumes have declined by two-thirds since their peak in 2004-5. Kretinsky says it seems the CWU understands the need to modernise. He hopes that, in time, Royal Mail will be able to offer more targeted time slots for parcel deliveries, and pick up e-commerce returns on the doorstep. “The network brings very strong competitive advantages, but the company has to reflect that fundamental change,” he says.
Https://www.investorschronicle.co.uk/news/2023/05/22/will-royal-mail-ever-make-a-profit/