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can falling share price trigger a RM takeover?

20 Dec 2018, 17:52

the driver from the mail centre dropped this one this morning. he says an ''in the know'' rep (to use his words) said that if the share price dropped below 2.50 it could trigger a takeover of RM. by who?....the government? ...any thoughts from anyone ''in the know''?

can falling share price trigger a RM takeover?

20 Dec 2018, 18:10

Yes, because the cheaper the shares get the less it will cost an individual to buy up enough shares to take control of a company.

Will it happen, possibly, but not probably in my opinion. Any company wanting to take on RM will have to fulfil the USO, be under the direction of rules laid down by ofcom, allow headroom access to continue, take on any pension deficits and liabilities, and abide by the legislation as the Government passes it. I think the price will have to be a lot lower for any company to be interested.

Plus there would be political considerations as I doubt even the Tories would allow RM to broken up into different parts which is what can happen after a hostile takeover.

can falling share price trigger a RM takeover?

20 Dec 2018, 18:14

so who ''actually'' owns the company now. yes we are RM, but who owns us?

can falling share price trigger a RM takeover?

20 Dec 2018, 18:33

daveyeff wrote:so who ''actually'' owns the company now. yes we are RM, but who owns us?


The shareholders do, but the Board run it. It a company takes over they can let the Board carry on, or replace them, once they have a majority holding they basically own and run it and can do with it what they want within reason. At the moment there is no majority shareholder.

Around August the shares were generally:

The general public held a substantial 24.80% stake
Private companies held a stake of 0.62%
Roughly 66% was owned by institutional shareholders (There are generally six types of institutional investors: endowment funds, commercial banks, mutual funds, hedge funds, pension funds and insurance companies.)

can falling share price trigger a RM takeover?

20 Dec 2018, 20:53

daveyeff wrote:so who ''actually'' owns the company now. yes we are RM, but who owns us?


The Morningstar financial website gives some detail on the funds & institutions who own RMG shares (strangely the US website
provides more detail than the UK website):

https://www.morningstar.com/stocks/xlon/rmg/quote.html and click on 'Ownership' and then 'Funds' or 'Institutions'

can falling share price trigger a RM takeover?

21 Dec 2018, 19:49

I delivered two special deliveries to the same house which were £26.52 EACH! Based on just that, we are making a record profit and the share price is going up :D

It's a crazy time for the share price. I am almost going full Rico and blowing it all on RMG shares.

Chuck 20 grand in a stocks and shares ISA full of RMG and that's you sorted for a tax free dividend lump sum every year. It really is a bargain for a long term investor.

I'll see what the share price goes early January and make my decision then, but I find it hard to believe Rico didn't have access to how well we are doing this Christmas when he spent around a mill on shares.

can falling share price trigger a RM takeover?

23 Dec 2018, 13:26

Tomolo208 wrote:I delivered two special deliveries to the same house which were £26.52 EACH! Based on just that, we are making a record profit and the share price is going up :D

It's a crazy time for the share price. I am almost going full Rico and blowing it all on RMG shares.

Chuck 20 grand in a stocks and shares ISA full of RMG and that's you sorted for a tax free dividend lump sum every year. It really is a bargain for a long term investor.

I'll see what the share price goes early January and make my decision then, but I find it hard to believe Rico didn't have access to how well we are doing this Christmas when he spent around a mill on shares.


YES, until the stock market crashes, when the dividends stop/reduce to below the % return on your money, which you could get in a isa/ long term savings account which could happen with RM shares sooner rather than later. As they tell you, the value of stocks/shares/investments can fall and rise at anytime. Just ask a lot of small time investors what happened to their portfolios in 2008.

can falling share price trigger a RM takeover?

23 Dec 2018, 14:31

Navalron wrote:YES, until the stock market crashes, when the dividends stop/reduce to below the % return on your money, which you could get in a isa/ long term savings account which could happen with RM shares sooner rather than later. As they tell you, the value of stocks/shares/investments can fall and rise at anytime. Just ask a lot of small time investors what happened to their portfolios in 2008.

And while you're at it, ask them how much their portfolios have increased since 2008.

can falling share price trigger a RM takeover?

23 Dec 2018, 15:48

RobertT wrote:
Navalron wrote:YES, until the stock market crashes, when the dividends stop/reduce to below the % return on your money, which you could get in a isa/ long term savings account which could happen with RM shares sooner rather than later. As they tell you, the value of stocks/shares/investments can fall and rise at anytime. Just ask a lot of small time investors what happened to their portfolios in 2008.

And while you're at it, ask them how much their portfolios have increased since 2008.


Good point RobertT, but I would imagine that it's the big buck investors or those investors
with a long term investing horizon who have managed to reap the rewards of QE. Small time investors as Navalron
was referring to often have only small amounts invested and don't diversify enough, take a big hit, see a falling
market and don't want to lose any more, so will sell at a loss. Then they lose out on the next recovery phase.

can falling share price trigger a RM takeover?

23 Dec 2018, 17:27

yellowbelly wrote:Good point RobertT, but I would imagine that it's the big buck investors or those investors
with a long term investing horizon who have managed to reap the rewards of QE. Small time investors as Navalron
was referring to often have only small amounts invested and don't diversify enough, take a big hit, see a falling
market and don't want to lose any more, so will sell at a loss. Then they lose out on the next recovery phase.

I consider myself a small time investor, to mainly fund my own retirement, but have made good money over the last 10 years.

In my opinion, the people you describe are those that haven't done their homework properly and don't seem to understand how stock markets work. Hence why they make poor decisions.

If they'd kept investing, their money would still have grown by a similar percentage to the big boys. It's all relative!

can falling share price trigger a RM takeover?

24 Dec 2018, 14:41

RobertT wrote:
yellowbelly wrote:Good point RobertT, but I would imagine that it's the big buck investors or those investors
with a long term investing horizon who have managed to reap the rewards of QE. Small time investors as Navalron
was referring to often have only small amounts invested and don't diversify enough, take a big hit, see a falling
market and don't want to lose any more, so will sell at a loss. Then they lose out on the next recovery phase.

I consider myself a small time investor, to mainly fund my own retirement, but have made good money over the last 10 years.

In my opinion, the people you describe are those that haven't done their homework properly and don't seem to understand how stock markets work. Hence why they make poor decisions.

If they'd kept investing, their money would still have grown by a similar percentage to the big boys. It's all relative!


RobertT - agree with you 100%, you may consider yourself a small time investor but your financial knowledge is outstanding and no doubt
you've helped many people on these boards. Look forward to your posts for the forthcoming year - it's going to be an interesting one!

can falling share price trigger a RM takeover?

24 Dec 2018, 19:46

yellowbelly wrote:
RobertT wrote:
Navalron wrote:YES, until the stock market crashes, when the dividends stop/reduce to below the % return on your money, which you could get in a isa/ long term savings account which could happen with RM shares sooner rather than later. As they tell you, the value of stocks/shares/investments can fall and rise at anytime. Just ask a lot of small time investors what happened to their portfolios in 2008.

And while you're at it, ask them how much their portfolios have increased since 2008.


Good point RobertT, but I would imagine that it's the big buck investors or those investors
with a long term investing horizon who have managed to reap the rewards of QE. Small time investors as Navalron
was referring to often have only small amounts invested and don't diversify enough, take a big hit, see a falling
market and don't want to lose any more, so will sell at a loss. Then they lose out on the next recovery phase.


My worse hit was my free Halifax shares which were worth over £10000 before 2008 but eventually plunged to £500! I made the mistake on that occasion of not selling and turning a paper loss into a real one. But of course the Halifax (which became Lloyds) never recovered. In hindsight I wish I had sold some of the shares years earlier and invested elsewhere. But at the time also had a S&S ISA as well as Tessa and AVC so decided to keep the banks shares thinking any loss might be short term!
Lesson learnt...

can falling share price trigger a RM takeover?

24 Dec 2018, 19:59

Navalron wrote:
Tomolo208 wrote:I delivered two special deliveries to the same house which were £26.52 EACH! Based on just that, we are making a record profit and the share price is going up :D

It's a crazy time for the share price. I am almost going full Rico and blowing it all on RMG shares.

Chuck 20 grand in a stocks and shares ISA full of RMG and that's you sorted for a tax free dividend lump sum every year. It really is a bargain for a long term investor.

I'll see what the share price goes early January and make my decision then, but I find it hard to believe Rico didn't have access to how well we are doing this Christmas when he spent around a mill on shares.


YES, until the stock market crashes, when the dividends stop/reduce to below the % return on your money, which you could get in a isa/ long term savings account which could happen with RM shares sooner rather than later. As they tell you, the value of stocks/shares/investments can fall and rise at anytime. Just ask a lot of small time investors what happened to their portfolios in 2008.

The value of their portfolios would have been reduced. If their portfolio was full of good quality companies paying reliable dividends rdsb (shell) never cut theirs even in 2008, they would have done ok though if they'd sat on their hands and held for another 10 yrs till about march this yr. Alot of Investors do panic sell though.

can falling share price trigger a RM takeover?

26 Dec 2018, 07:59

yellowbelly wrote:RobertT - agree with you 100%, you may consider yourself a small time investor but your financial knowledge is outstanding and no doubt
you've helped many people on these boards. Look forward to your posts for the forthcoming year - it's going to be an interesting one!

Thanks for that! :thumbup

With the worlds stock markets already taking a tumble and Brexit on the horizon, it certainly is going to be interesting. :hmmmm

can falling share price trigger a RM takeover?

28 Dec 2018, 01:28

daveyeff wrote:so who ''actually'' owns the company now. yes we are RM, but who owns us?

No one owns RM as of yet although supposedly German interests have a substantial stake in RM shares. Anything of worth in the UK is being bought up by other countries and this trend isn't showing down. Today French interests gained a controlling stake in Gatwick, the UKs second largest airport. In most other countries the government's would step in and prevent the sale of any vital infrastructure and business interests. Our government is letting everything go.

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