The latest Investing Matters Podcast episode with London Stock Exchange Group's Chris Mayo has just been released. Listen here.
Couple of reason why 239 is not achievable
1. Barclays is a very naughty bank , it's not too far from its next fine
2.the UK shares are always undervalued
3. Bank shares are always even more undervalued
4. Barclays like to rewards it's bankers more than than shareholders....
If it was in USA , then £3 all the way..
Barc has held up even while the market has gone down
Let's hope the good mood continues, and we can see 1.65 plus by the end of the week...
Broch, could this just be to get the YES vote out
If the union has agreed 60/90 minutes, then the business can implement that when there is a business need
At the moment, volumes tend to be low this time of the year, so no need...
60/90 minutes you would expect to be implemented around sept / Oct.
£1 million sounds a lot, but for a company the size of royal in terms of revenue and staff pay costs , I would be surprised if they cannot turn that to positive this quarter or next quarter, even with the pay rise....
If they cannot , the board should say bye bye to the CEO and a few others finance director incl
The 1 million a day, that's 365 million
1.6 would be 584 mill
No strikes would be 484 (200 mill savings)
Stamp price increase (I'm sure someone on this board said would be extra 300 mill)
Leaves 184 mill
On top of that cost of whole sale gas , electric and fuel has come down significantly...so more savings
Plus people leaving , and hiring freeze...should reduce the pay bill
If costs are running high, you would expect RM to increase the prices of all its services across the board, in line with inflation...
So it's possible to bring RM back to profit
It's a bloated company, there is so much scope to cut costs and grow the business.....
Anger , I've asked a few posties where they think the money should come from to pay the 10% pay rise...
They go back in past, and mention the £700 million given to shareholders
It's so hard to explain to them, that's the past, that money has gone , it's no longer there .....
I think Dave's going to have a right problem explaining to the postie's.
It's a crap offer, 10% over 3 years, inflation over 10% and food inflation over 19%
In response to this
The company doesn't have to match a pay rise to the current inflation, there's nothing in law or postie's contracts to that effect
The company can pay what it likes , and if your not happy you can leave
If your employer is responsible they would try their best to get close to cost of living
RM have gone beyond that, they are giving posties an increase while making a loss....
That's a responsible employer....
Just had a chance to meet some union members and a rep yesterday
They seem to be very happy that a deal had been reached (even though details haven't been released) and not at all worried, about lack of Comms from the union......
From what they were saying , it would seem the union will be able to carry a lot of members with it...
Mind you these members will be unaffected by the later starts....
These members that I spoke to were more effected if the allowances had been taken away...now that has been agreed, allowances will stay...they will vote with the union...
It's Friday, maybe we will get a more detailed Comms from the CWU....
I reckon as well.
I believe the losses this quarter will be less than what the markets expect
The pay rise is well below inflation
The union power at local level will be curtailed...
RM prices for its good and services will be well above inflation
Costs will be cut
And RM will start dialing in the profits.....
This agreement will give RM flexibility with its staff, at the same time put a bad chapter behind it....
And if Simon goes , and they can get someone of significantly higher calibre ....then it all boades well for the company....
Unlike other companies RM is badly run, and there is sooooo much RM can do internally to improve its situation....it's just needs a better management team starting with a new CEO
Not sure why cwu is taking sooo long to put out a statement, or what's on offer....
You would have the Dave and Andy would have kept the executive on board during the talks.
Unless they have kept the members and fellow board members in the dark, and now they are explaining what they have achieved.
Most of the young people are the ones who do online shopping....
And with most people working shift and variable hours , lockers are more convenient....
Lockers , delivery to shops etc surprised rm haven't jumped on the bandwagon yet.
Most of the young people are the ones who do online shopping....
And with most people working shift and variable hours , lockers are more convenient....
Lockers , delivery to shops etc surprised rm haven't jumped on the bandwagon yet.
Last few months the SP has been hovering around the 230p mark....
It's not crashed because of Mr K , many small shareholders may not be aware (and have been selling shares), but large institutional shareholders are aware of possibility of takeover , so they having been holding onto their stock. The price has not gone up because of Mr DW... Now that DW has faded away for the foreseeable future, let's hope the sp can rise above £3 soon....esp as the macroeconomic outlook improves.....
At the moment I don't think special administration or uso will be utmost in the mind of the board...
Now that the dispute is nearing its conclusion, I think implementing changes to turn around RM will be the primary focus......
The special administration was borne out of the dispute as a leverage to pressure the cwu (and it worked). If there was more strikes then special administration would have been the right of course of action for the board....
Nevertheless the main issue with special administration, is the untangling of the letters from parcels....
If the board wishes to go down the path of special administration, now is the time I think for them to start planning for it...ie deciding which parts of the business they would like , and then ring fencing that business...
If memory serves me well , it took Barclays 3 years and 1.4 billion to ring fence their UK / deposit operations from their risky investment banks side. And for RM parcels and letters is even more intertwined....
If the home work can be done correctly and early, then it will be risk free for IDS and shareholders....if it was forced on due to a no vote , and lack of prep , then there will be direct and collateral damage to the whole business....it's not as straight forward, and that's why maybe Mr k hasn't gone on for the kill yet....
If the board is serious about special administration, then maybe parcelforce and the super and min hubs could should be moved over to GLS within next couple of months.....
If nothing changes next few months , then special administration is just a after thought for the board....