presneill31
27 Dec 2017
Re: Perfect Storm and Royal Mail Benefit Amazon signed a 3 year deal with Royal Mail before xmas.Many couriers only get around 75P per item if delivered. So no delivery , equals no money. It is hardly surprising that some will just zap item and leave it it if no one is in,or worse still, cannot find the address.I work for Royal Mail and expect a cracking update on trading in a few weeks. Do think shares will hit £6 ,no I don't. £5 definitely possible.On the CWU, pensions and strike related stuff. Pretty sure now an agreement will be announced shortly. The CWU and RM both know a to generous a pension agreement would end up just as unsustainable as the present one has.Our costs are already there and we make good profits. A change in employment law for these smaller couriers and many will go under because of the added sick pay , holiday pay and pension costs, worth remembering.
Akis1999
27 Dec 2017
Re: Perfect Storm and Royal Mail Benefit Amazon is a retailer who uses their own warehousing and distribution (Amazon Prime). Amazon use "random" drivers, a la Uber, or even worse, as I have seen DOZENS of different drivers in unmarked cars and vans, many times old and beaten up, delivering Amazon parcels over the years.RMG is a distribution company, they cannot generate end product sales and do not own the warehouses, and they are using a huge workforce with salaries, pensions and benefits, AND STRIKES, and offices and fleet of well maintained vans, all of which weigh heavily down on the BS.RMG also have stiff competition from dozens of more efficient firms whereas Amazon face none in their distribution business, because , well, they own it!
deshulme
24 Dec 2017
Re: Perfect Storm and Royal Mail Benefit Read what I wrote carefully. ?Happy Xmas!!
WhoSparticus
23 Dec 2017
Re: Perfect Storm and Royal Mail Benefit Sorry des but this doesn't make sense.You say Amazon can't handle their own success but RMG can cope with it all because they have to pay more staff?You say your customers have to leave their porches open or leave notes for all to see. With Amazon you do it online and passers by can't just read the notes. I use Amazon and they leave it where I ask them , nobody else knows where. RMG , in your opinion, will succumb to pressure from CWU because CWU is right and they are wrong?AND the share price will hit £6 inJanuary. Well , Happy Christmas Des. Santa's on his way , followed by the men in white coats. Speaking as a Prime user Amazon deliver on the following day, on time , every time, if it is a prime item. They leave it in my safe place if I am not at home, every time. They keep me up to date with tracking info. On the other hand RMG leave a card say I have to collect it from a nearby depot at their convenience. If I'm lucky they complete the name on the parcel. I have had a case where they haven't done this so I go to get it and get told can't have it because I am not the addressee. It was my wife and if they had put her name on the card I would have got her to collect it.
deshulme
21 Dec 2017
Perfect Storm and Royal Mail Benefit Amazon incredible growth hits problems as they are not coping with the massive increase with online Sales. Now Mobile phone Ordering are increasing faster than PC sales increasing the pressure on delivers. Amazon and UKmail are diverting more and more Parcels through the national network. Royal Mail are overwhelmed by the amount they are receiving but with more feet on the ground they can cope more with large increases than the other Parcel firms. 2D barcodes and 24hr and 48hr tracking no signature doorstepping deliveries are really increasing profits. As a Postman have noticed a massive increase in people leaving their porches open or leaving notes where to deliver their items. First time deliveries increase efficiency and reduces Complaints.The Royal Mail Bosses under pressure from such a large vote and a massive turnout for a yes Vote for Strike action will be more agreeing with CWU as they can see some leverage from turnover increase.Already Large Sales of Land in London and many places through the UK, headline Profits will hit next year top line.Any way I predicting by time Royal Mail announce their results in January we could be touching £5 and next year if a Agenda for Growth is agreed then £6 is achievable.
deshulme
12 Dec 2017
National Postal Workers' Day All you Corbyn Fans [link]
presneill31
12 Dec 2017
Re: out for the time being I would rather not think about what Corbyn would do Trader jack !!.
trader jack
12 Dec 2017
Re: out for the time being "I truly wonder if Labour do get into power their priorities will not be spending £4.5BN (present value) to re-nationalise Royal Mail , when the NHS and education ,police and every other major service is crying out for money, along with fixing the roads etc. Add the proposed £40BN ongoing from Brexit and all of a sudden its bottom of the list. "Good afternoon Presneill31,As I understand it its's not just RMG that Corbyn & co dream of nationalising if they ever manage to get their mitts on the levers of power. You have to add the likes of CNA, SSE, NG., UU the railway franchises and many other companies to their hairbrained schemes. Then you have to wonder where the cash will come from to finance and run the plans of Corbyn & co and how long it will take the international bond and treasury markets to realise that these plans could never be adequately financed but will only result in sending the U.K. into early bankruptcy.These things must be the stuff of nightmares to the man on the Clapham omnibus and us private investors who could quickly become destitute if these things happened.Sweet dreamsTJ
presneill31
12 Dec 2017
Re: out for the time being I truly wonder if Labour do get into power their priorities will not be spending £4.5BN (present value) to re-nationalise Royal Mail , when the NHS and education ,police and every other major service is crying out for money, along with fixing the roads etc. Add the proposed £40BN ongoing from Brexit and all of a sudden its bottom of the list. Would Labour want to take on the RM pension again too, I ask?
shovelier
11 Dec 2017
Re: out for the time being Sadly letter writing is in decline.There's nothing like a letter or a real birthday or Christmas card.It's a bit like reading a real book instead of a kindle.Parcel business is up though and I really don't agree with the business of allowing other companies to cherry pick the parcel and letter business that they choose and leave the difficult or low profit stuff to RMG; that's not fair competition.
idontwanttolose
11 Dec 2017
Re: out for the time being I too am out for the time being but probably for good for letter reasons as much as the strike! I cannot remember the last time I bought postage stamps and if I use a courier for a parcel it is not Parcel Force!!Our local postman is however brilliant but only delivers circulars and bank statements, folk don't write letters anymore (only official ones) they write emails!! why cos they cost near nothing and get there within seconds and you can send the same email to hundreds of folk and for the same price as one email, no stamps, no envelopes or paper.SO NO PROFIT FOR RMGAs always DYOR
Radaking
11 Dec 2017
out for the time being Its had a good run in the past few weeks and will be collecting the div (final and interim),but for me I will be out until we see the £4 sp again.The unions are only away for a while and nothing has been finalised.If labour get in (which looks likely,they will devour stocks like this...............Goood luck to long term holders
II Editor
07 Dec 2017
NEW ARTICLE: Royal Mail breakthrough with unions improves investment case "Having seen off the "spivs and speculators", LSE:RMG:Royal Mail shares are back close to where they started their controversial stockmarket journey in 2013.It's been particularly painful progress this year for a multitude of reasons, mainly due ..."[link]
II Editor
01 Dec 2017
NEW ARTICLE: The week ahead: An 8% yielder, Royal Mail, Next, Ferguson, Carillion "The pace of corporate reporting is beginning to slow, but there is still plenty to interest investors and some big dividends to be had.Monday 4 DecemberTrading StatementsRhythmOne, Character Group, MXC CapitalAGM/EGMMysale Group, Taptica ..."[link]
trader jack
01 Dec 2017
Fall in SP Just when things looked to be improving........Royal Mail Group PLC (LON:RMG) was among the top laggards on Footsie Friday as a heavyweight broker downgraded the shares to 'sell' from 'hold' and cut the target price.Despite Moya Green, the chief executive, doing a fine job, operational challenges will become even more challenging over the next 12 months, reckons analyst Andy Chu.READ: Royal Mail says industrial dispute could hit full year earnings as it reports lower first half profitsHe thinks it will become trickier to modernise and take costs out of an already complex business in an environment where GDP growth is weak, and there is low visibility on business confidence post Brexit.Also in the mix are generally higher wage bill pressures and an on-going mediation process with the unions over pay and pensions.Falling profits year-on-year ...?Chu reckons that given cost avoidance measures will be hard to execute over the next 12 months, he thinks that profits for the full year to March 2019 could fall year-on-year."We reduce our FY March 17/18 and FY March 18/19 EBIT post transformation costs by 0.5% and 5.1% respectively to £498.7m and £485m," he says."RMG is still in the early phases of transformation, and we think that shareholders are not at the top of the stakeholder list as the primary focus is on restructuring, employee wages and pensions and M&A."Deutsche cut the target price to 359p from 450p.Jefferies cuts target too ...US house broker Jefferies, which rates the shares 'underperform', takes a similar view, saying an inflection point is approaching, as the labour dispute between the firm and the Communication Workers Union (CWU) comes back to the fore as mediation talks close.It envisages an improved pension offer, costing £450mln per year, with wage rises at 3% per annum.This results in a 15% cut to the broker's EPS (earnings per share) estimates, and a cut to the target price for the shares of 10% to 300p (from 330p previously).German bank Berenberg goes the other way though, hiking its target to 415p from 375p, after the now private postal firm's good performance in the first half."The company did a much better job at driving volume growth in UK parcels and controlling costs than the market had expected," it said, but noted that the pay and pensions dispute, was as yet, unresolved.In London, Royal Mail shares lagged 4.14% to 423.60p.
