The covid test time bomb

[*horcrux*]

Conpany shareholders will just to have make do with smaller dividends then

Or they can decide to invest elsewhere.

What difference would that make to RM if people did invest elsewhere?

RM shares would be worth next to nothing and the company would grind to a halt?

No this is not true.
The company doesn't get any money when someone sells shares to someone else.
The companies finances are still the same whether the share price is £1 or £10. None of the companies income cones from having a big share price.
The only exception being if they were to issue more shares for a fund raise but that's hardly likely since they just gave 400 million away (or whatever it was) in the form of a special dividend.

[clashcityrocker]

The companies finances are still the same whether the share price is £1 or £10.

Your naivety would be worrying if it actually wasn't so funny.

[Murdoch]

The companies finances are still the same whether the share price is £1 or £10.

Your naivety would be worrying if it actually wasn't so funny.

Perhaps instead of calling him naive, contest his point.

It's fair to say, that company finances, or lets say revenue or performance isn't always related to share price.

The financial markets ultimately are run by humans, and they tend to overeact or panic at times. I don't think anybody could say the financial markets get the valuation of all companies correct, all of the time. It's a big money making game, more akin to gambling than anything else.

So he's correct to make the distinction between share price and finances. Because lets face it, revenue is key here.

[*horcrux*]

The companies finances are still the same whether the share price is £1 or £10.

Your naivety would be worrying if it actually wasn't so funny.

Good rebuttal there.
Don't get me wrong I know a higher share price "looks good" and could reflect a company doing better but in the end RM makes money from selling stamps/delivery products not from shares being traded on the LSE. That's the point I was trying to get across.

[clashcityrocker]

If the share price doesn't matter why are RM engaged in buying back as many shares as possible?
They know the share price reflects business confidence.
The £1 drop in the share price has wiped approx 20% off the value of the company.
That effects confidence in the company and also its ability to borrow. It might also worry its creditors.

And then of course there is Kretinsky (or another like him) How many shares does he own now?
A lower share price may persuade him to launch a hostile takeover bid.
After all, mopping up the £3 billion property portfolio might look attractive to an investor.

So shares at £10 - high business confidence.
Shares at £1 - probably the end of RM as we know it.

And we haven't even begun on those shorting the stock.

[MrSort]

26,340,000 that were covid kits at £8 - it’s £210.3m in income

Err we wouldn't be charging 8 squid to 'deliver' a test kit.

I can't see the big deal in this, yes it's lost work but there's kinda other work out there.
Do we all usually panic when a 'temporary' contract finishes?

Apparently it is £8 per kit.
That price includes processing and delivering it, then collecting from designated covid pillar box once used, scanning it and then processing it and handing it over to the courier / lab

[POSTMAN]

26,340,000 that were covid kits at £8 - it’s £210.3m in income

Err we wouldn't be charging 8 squid to 'deliver' a test kit.

I can't see the big deal in this, yes it's lost work but there's kinda other work out there.
Do we all usually panic when a 'temporary' contract finishes?

Apparently it is £8 per kit.
That price includes processing and delivering it, then collecting from designated covid pillar box once used, scanning it and then processing it and handing it over to the courier / lab

Any links or docs, not doubting you but would just like to see.
EDIT: To be fair various articles say this...
The contract value is for £550 million but that could swell to £1 billion.

Farrrrkinell!

[Clappedoutpostie]

Any links or docs, not doubting you but would just like to see.
EDIT: To be fair various articles say this...
The contract value is for £550 million but that could swell to £1 billion.

Farrrrkinell!

£550 million for 12 months delivering up to 900000 a day, that’s the maths of it.

[MrSort]

26,340,000 that were covid kits at £8 - it’s £210.3m in income

Err we wouldn't be charging 8 squid to 'deliver' a test kit.

I can't see the big deal in this, yes it's lost work but there's kinda other work out there.
Do we all usually panic when a 'temporary' contract finishes?

Apparently it is £8 per kit.
That price includes processing and delivering it, then collecting from designated covid pillar box once used, scanning it and then processing it and handing it over to the courier / lab

Any links or docs, not doubting you but would just like to see.
EDIT: To be fair various articles say this...
The contract value is for £550 million but that could swell to £1 billion.

Farrrrkinell!

Sorry, nothing to actually back it up apart from hearing how much we were getting on original deal and how many items. Bearing in mind that was also originally exclusive pillarboxes for tests and stand alone collections.

Apologies if original reply misled.

[Kenfandango]

Simon agreed to the "3 million a week" hyperbole a good few weeks after the mass back pat ceremony where they lined some rich people's pockets to the tune of £400mil, and I think the £8 each was the first batch when only one company was supplying them.