Shares to Plummet Tomorrow ?

[RedBagMan]

Notice they're back up over six quid today ... d'you reckon the back-pay to all will cause a sharp fall ??

Or is this just guesswork economics on my part ??

[Judgee]

£100 million in back pay against a company valued at over £5 billion hmmmmm let me think!

[hantsman]

Notice they're back up over six quid today ... d'you reckon the back-pay to all will cause a sharp fall ??

Or is this just guesswork economics on my part ??

You have no idea, hope you bought the full amount on offer?

[wandle]

Notice they're back up over six quid today ... d'you reckon the back-pay to all will cause a sharp fall ??

Or is this just guesswork economics on my part ??

YES.

When the pay deal was still being thrashed out, the Prospectus giving details of the share flotation contained reference to a huge sum of money, set aside for (presumably) our backpay. So the boys in the city will have already known this payout was falling due at some point.

The share price of many companies usually only reacts sharply to unexpected news, whether that be good news or bad news. Sometimes, the behaviour of the share price can actually do the opposite of what you might expect, e.g. TNT announces plans to roll-out more direct deliveries, in direct competition with Royal Mail, and yet RM's share price not only fails to go down... but actually rose 9.5p (about 1.5%) on the day !

[demon]

no because they will have been getting s**t loads of interest on the back pay do you honestly see royal mail not keeping it set aside any way in some high interest account

[mickeymacca]

No, quite the opposite.

Share price fluctuations are largely based on confidence in the said company. A pay rise and lump sum to the work force would suggest a contented work force, therefore a more productive workforce and ultimately a more profitable company, thus improving confidence in investing in that company.

The amount of funds set aside to pay the backdated pay was presented in the last set of company accounts, and so is therefore not new information that serious investors would need to consider.

[RobertT]

They actually finished the day slightly up by 2.5p.

[RedBagMan]

I stand suitably corrected

Now to open my pay slip

[mickeymacca]

No worries dude, you were only asking a question, not making a statement.

[tansorboy]

Notice they're back up over six quid today ... d'you reckon the back-pay to all will cause a sharp fall ??

Or is this just guesswork economics on my part ??

Gone up to 609 this evening.

[anTi]

I think the shares have now found their level. Sold mine today at 6.07. 84% profit!

[Dorset Plodder]

I love the way everyone's suddenly become experts on the shares market We were given the shares, we can't cash them for 3 years, and a lot of us got shafted over their issue, apart from that I'm not sitting there watching the price go up and down for the next 3 years. I'll check them the day before we're allowed to sell them.

[TrueBlueTerrier]

Yesterdays Share Value for me £0

Today's Share Value £0

Mondays Share Value £0

even in 3 or 5 years it still worth £0 unless I cash them in

[mickeymacca]

I love the way everyone's suddenly become experts on the shares market We were given the shares, we can't cash them for 3 years, and a lot of us got shafted over their issue, apart from that I'm not sitting there watching the price go up and down for the next 3 years. I'll check them the day before we're allowed to sell them.

I tend to agree, but could n't resist responding to a thread title that resembled a Daily Express/Mail headline....

[Dorset Plodder]

I tend to agree, but could n't resist responding to a thread title that resembled a Daily Express/Mail headline....

I blame the Illegal immigrants coming over here getting houses. free money and stealing our free shares!