Royal mail selloff

[mats]

So, who's buying? Despite disagreeing with the whole idea, it looks like there's some fairly easy profit to be had. 6% dividend and an over subscribed issue - combined with the fact that cash ISAs and savings accounts are making about 2% makes it rather tempting imho.

 

Midnight Tues is the deadline - anybody else thinking about it?

[SteveT]

Minimum of £750!!! .......and I would go beyond "disagreeing" with the sale. Essentially they are offering to sell me shares in a business I already own!!! And once privatised what chance of affordable mail delivered in sparsely inhabited rural areas round here!!! The privatisation of national assets is immoral IMHO and in any other sphere would be illegal!!!

[Gibbo]

Is it a business worth investing in?

 

Aside from the letters market which has long been declining, for parcels they have long been outperformed by private couriers. They need to address the price differences and flexibility between them and their rivals, the convenience of dropping your parcel off at a local convenience store and collecting them from the same place.

 

There's also this recent Ebay - Argos tie in too.

 

Having a parcel delivered to your home is nice, providing the postie actually carries it and not a pre-filled in "sorry you were out" card that he delivers with the utmost of stealth so you can't catch him!

[Theblacksheep]

Essentially they are offering to sell me shares in a business I already own!!!

 

You don't own any of it, the UK government owns it.

 

People should have kicked off in 2011 when the bill went through.

[Chris_in_notts]

Definately worth investing id say if I didnt have a baby on the way in a weeks time id be buying as many as I could afford, afew members of my family are big on shares and they are all buying in!

[TechMonkey]

Well considering that there is/will be an act of parliament stating that they have to deliver to all the UK once a day then there is no worry of rural post being stopped.

 

As for Gibbo's question, I have been hearing that the figures over the past few years have been fudged with various accounting tricks to show worse than they are. One of those tricks is the Government looting the coffers, so in fact Royal Mail is doing very nicely and would have been in profit to quite a tune. Another issue that Royal Mail has had is that they were given a fixed price to deal with other peoples mail, so it may cost 20p a letter to deal with, but RM can only charge 10p (made up figures but that kind of deal). Once privatised I believe they will be able to drop that as they are corporate entity so no longer under government competition clauses. This means they can drop shonky deliveries and make them profitable.

 

Also they have some huge properties that can probably be sold off and moved to better premises, some prime real estate in major town centers, no post offices major sorting offices that they really don't use much.

 

Beyond the possibility of a short term cash in because of the initial under valuation I can see within a few years a rather spectacular turn around appear.

 

Ohh I've come over all city trader!!

[glennda]

Minimum of £750!!! .......and I would go beyond "disagreeing" with the sale. Essentially they are offering to sell me shares in a business I already own!!! And once privatised what chance of affordable mail delivered in sparsely inhabited rural areas round here!!! The privatisation of national assets is immoral IMHO and in any other sphere would be illegal!!!

 

Would you say that if the country still owned Pickfords Removals? and BSM - BP, British Aerospace (Now BAE), Cable and Wireless, Jaguar, BA, BAA.

 

The List continues it is just the next company that we can shift while it is profitable.

[zag]

Well worth investing 5k in or something like that.

 

If you have the money its worth it.

 

BT shares started at 40p when they were privatised in the 80s. Think they are about 300 something now

[ICTDirect_Dave]

Privatisation certainly isn't all doom & gloom it's far better to put companies in the hands of business minds rather than government who really don't know how to run things.

And a potential profit of 6% is really rather good considering todays lame interest rates. I'd definitely buy in if I had the cash

[zag]

Royal mail also have a huge property portfolio, its an incredibly good business to buy into in my opinion as an investor.

[Flatpackhamster]

Privatisation certainly isn't all doom & gloom it's far better to put companies in the hands of business minds rather than government who really don't know how to run things.

 

I would agree with you with one caveat. Monopolies make poor vehicles for privatisation. A system where a single provider has to deliver to everyone every day is a monopoly. The same applies, IMO, to water which was also a poor vehicle for privatisation because it requires sustained investment which, for all their posturing, the companies have not delivered. Did you know that the last reservoir to be built in SE England was built 30 years ago? And that, after nearly 2 decades of private ownership, water loss rates from leaking pipes have barely improved?

 

Those not in the know might be interested to learn that this joyous process was foisted on us by the EU - specifically the Postal Services Directives. The first one dates back to 1997: EUR-Lex - 31997L0067 - EN

[Flatpackhamster]

Royal mail also have a huge property portfolio, its an incredibly good business to buy into in my opinion as an investor.

 

I certainly welcome the opportunity that we will have to enjoy seeing public property sold off to private enterprise at a hefty profit. I believe that there are still a few school playing fields in public ownership if you're looking to make a killing building houses on them.

[Ephelyon]

Monopolies make poor vehicles for privatisation. A system where a single provider has to deliver to everyone every day is a monopoly.

 

^ This. The problem is that business depends on competition; good service both now and in the future is dependent on the need to outperform your rivals such that both you and the customer are better off. Businesses that know they have a monopoly in a particular area tend to provide a less good service because there's less motivation to. Privatisation by means of opening UP the market can be good, but if that's not the case then you're probably better off leaving it in the hands of people who in theory ought to be trained/experience to provide a good service without the added "incentive" of the need to compete.

[Gibbo]

I believe that there are still a few school playing fields in public ownership if you're looking to make a killing building houses on them.

 

Ah, that old chestnut, based on this news report if I'm not mistaken: BBC News - School playing fields: 31 sales approved

 

Totally ignoring the number that Labour sold, a number on the list were closed years ago.

 

For example Gorsthills School at the bottom of that list on the BBC link was closed in 2007 (under Labour), the building has been demolished, and the land is surplus to requirements and has been laid idle for years.

 

Or that the DfE later said that 14 of the fields were at schools that had closed, four were sites that became surplus when existing schools amalgamated and one was surplus marginal grassland on the school site, with the proceeds invested in the school library and better sports changing facilities.

 

The fact they're called "playing fields" is a joke, they're nothing like. And I'd rather see them used for houses than green belt land.

 

Closer to home, my school has some playing fields which are too far from the school to be practically used. They must be at least a quarter of a mile away and are just laid idle. By the time you've got the kids changed and out there, you'd only have ten minutes of play before bringing them back.

[Flatpackhamster]

Ah, that old chestnut, based on this news report if I'm not mistaken: BBC News - School playing fields: 31 sales approved

 

You are mistaken. You have mistaken a party political point (which I was not making) with a general objection to playing fields sales over the last 40+ years (which I was).

 

The fact they're called "playing fields" is a joke, they're nothing like. And I'd rather see them used for houses than green belt land.

 

Neither would be necessary if mass immigration hadn't created a second Baby Boom which will take 50 years to work its way out of our demographics. Still, so long as Guardian readers get their cheap au pairs and ethnic basketwork shops...

 

Closer to home, my school has some playing fields which are too far from the school to be practically used. They must be at least a quarter of a mile away and are just laid idle. By the time you've got the kids changed and out there, you'd only have ten minutes of play before bringing them back.

 

In that case the games session is too short.

[speckytecky]

True but if I'm not mistaken an equally huge pension liability and I can't but help recall several delivery companies that have proved so difficult to manage that their boards have ended up selling them on for peanuts just to get rid of the liability. Rentokill Initial recently sold Citylink for £1 for example. Yet Citylink seemed to have a very nice segment of the market which must surely have been profitable?

 

Royal mail also have a huge property portfolio, its an incredibly good business to buy into in my opinion as an investor.

[zag]

True but if I'm not mistaken an equally huge pension liability and I can't but help recall several delivery companies that have proved so difficult to manage that their boards have ended up selling them on for peanuts just to get rid of the liability. Rentokill Initial recently sold Citylink for £1 for example. Yet Citylink seemed to have a very nice segment of the market which must surely have been profitable?

 

The government took over the Pension Liabilities I think last year.

[mats]

For the record, I applied using some money in an isa which was earning less than inflation - otherwise known as devaluing.

 

The missus will kill me if it all goes pear shaped but I think it's worth a punt.

[Gibbo]

You are mistaken. You have mistaken a party political point (which I was not making) with a general objection to playing fields sales over the last 40+ years (which I was).

 

 

 

Neither would be necessary if mass immigration hadn't created a second Baby Boom which will take 50 years to work its way out of our demographics. Still, so long as Guardian readers get their cheap au pairs and ethnic basketwork shops...

 

 

 

In that case the games session is too short.

 

You seem to be all over the place there with a random rant based on generalisations and no actual facts.

[Flatpackhamster]

You seem to be all over the place there with a random rant based on generalisations and no actual facts.

 

If you don't understand the words I can explain them to you.

 

You were the one that made a massive, wrongheaded assumption. Don't take it out on me.

[CyberNerd]

Anyone manage to sell @£4.50 and make £270 overnight?

[zag]

30% profit, cant complain!!

 

Since the staff also made an instant £500 minimum, I guess they may actually be happy for once, well until they vote to strike....

 

The real question is what would they strike about haha

[SpuffMonkey]

30% profit, cant complain!!

 

Since the staff also made an instant £500 minimum, I guess they may actually be happy for once, well until they vote to strike....

 

The real question is what would they strike about haha

 

Because its stupid, short sighted and wrong...ha ha

[Gibbo]

If you don't understand the words I can explain them to you.

 

You were the one that made a massive, wrongheaded assumption. Don't take it out on me.

 

Condensing now, is your argument really that weak?

[nicholab]

I have to say that the Royal Mail is not what it used to be my Grandfather was a Postman and it was a respectable job. Now they do not care and their customer service is poor.