Share price reflects how poor the company is at the moment

[par4mrl]

The current share price to me reflects where this business is at the moment. Poorly run from the top right down to the bottom but yet bonuses are paid along with dividends. Yet the poor old postie has to mop up the mess that the top brass keep leaving. Simon seems absolutely clueless and anyone directly associated with him and what will happen……they leave it screwed up and move sideways to do the very same to another company. It’s about time the clowns at the top took accountability for their own actions rather than blaming and finger pointing the ground troops.

[Woody Guthrie]

I think the share price reflects the fact that there is a great deal of short money bet on Royal Mail at the moment and these sharks are not above spreading bad news in order to spike the share price.

The markets are a giant casino and the share price does not reflect a company's intrinsic value, it does not even reflect its long term potential, it only represents its next trading report and possible dividend pay out.

Everybody gets in and gets out, nobody holds for the long term. That's why Royal Mail are desperate to keep providing dividends when it would be far more sensible to re-invest that money in the business.

[clashcityrocker]

The only interesting thing about the share price is trying to guess when Kretinsky is going to step in and mop up the shares needed for a takeover.

[number one]

The only interesting thing about the share price is trying to guess when Kretinsky is going to step in and mop up the shares needed for a takeover.

Simply won’t happen so stop talking nonsense

[clashcityrocker]

Kretinsky has built up a £250 million+ share in the company.
Even when he could have sold and made huge profits he chose to hang on those shares.
Why?
GLS is an attractive profit making company.

Daniel Kretinsky, who owns Sparta Prague football club and who made his fortune in energy, has amassed a £250million stake in the historic FTSE250 company. Analysts believe that after years of poor performance by Royal Mail he could push to spin off its European parcel business GLS.

But I'm sure numberone knows best.

[Woody Guthrie]

The only interesting thing about the share price is trying to guess when Kretinsky is going to step in and mop up the shares needed for a takeover.

I favour the poison pill defence.
Starting with Simon.

[daveyeff]

could well happen. his net worth is 5.2 billion, he owns 94% of central Europe's largest energy group. and as well as sparta prague he is a major shareholder of the 'hammers' (WHU) money talks...... well googled eh?

[noggin1969]

x

[rambo1]

It's market sentiment. You've got a company that's not too well healed, just a quick look at any Royal Mail fleet vehicle will tell you that we aren't investing any money in the things that actually deliver stuff (that goes for us too, where's the new uniforms?). Also an impending conflict on pay. The cost of fuel skyrocketing coupled with the threat of stagflation in the coming months. You gotta ask yourself, why would anyone but our shares? Apart from a decent dividend at this level but for the ressons outlined above, I believe an unsustainable one. It's ok having loads of parcels to deliver, but we've seen before, that doesn't necessarily translate into loads of profit. You can only go so long neglecting your infrastructure and staff, it's going to catch up some day.

[blacov]

It's market sentiment. You've got a company that's not too well healed, just a quick look at any Royal Mail fleet vehicle will tell you that we aren't investing any money in the things that actually deliver stuff (that goes for us too, where's the new uniforms?). Also an impending conflict on pay. The cost of fuel skyrocketing coupled with the threat of stagflation in the coming months. You gotta ask yourself, why would anyone but our shares? Apart from a decent dividend at this level but for the ressons outlined above, I believe an unsustainable one. It's ok having loads of parcels to deliver, but we've seen before, that doesn't necessarily translate into loads of profit. You can only go so long neglecting your infrastructure and staff, it's going to catch up some day.

This is why Simon and Co should have recognized a long time ago. Instead of putting our future in very grey colours. They should have recognised the workforce. Split the 400m between rewarding staff and shareholders. Dividends are quite important to attract people to invest in the company and it translates usually into an opportunity to raise money. For me the biggest sin of Simon is that he's going to crash head on with the union and he does nothing to avert the strike. He ha also painted our future in very dark colours.

I understand that revenue won't be as high as it was during the pandemic but assuming that sickness levels will come down and given the fact that parcels are still way above pre pandemic levels we are going to remain profitable. Given the fact we have just streamlined our management structures as well as launched revisions that I believe both improve efficiency and ultimately save money, well at least on paper If he was willing to look after his people and avoided clash with the union and IA threats in the first place, if his statement was much more positive and in fact it should have been as royal mail after all did remarkably well and as per looming inflation they have put the prices up anyway. Royal Mail would be in much better position but I guess playing it all down helps them at negotiating table. He knows full well even if we get 2-3% payrise with the long term trend of buying more staff online, once we will launch the parcel hubs and expand sunday service, we will still be making hundreds of millions.

He wants more, this is the type of guy who can see just the spreadsheets and doesn't care one bit about his people. If he did most likely RM would be still a FTSE100 company and with workforce willing to go the extra mile. Instead he has nearly hundred thousand posties with rock bottom morale, beaten to the ground. Rather thinking of calling sick than going the extra mile for the company, he has the IA threat and because he invited the big boys to short the stock, we are out of FTSE100 and still falling. He should go.

[mickeymacca]

Some interesting/good posts in this thread.

Reality is Thommo's performance is judged most importantly by the shareholders, despite how low morale is in the DO's a continued divi will keep the long term holders content. Share Prices are still so unstable since the start of the Pandemic that the situation isn't really going to panic LTH. And though I hate to criticise, the toothless approach that the Union has had to the pay rise disputes over the last 10 years or so with protracted settlements negotiated and agreed, and then backdated ,this is indicative of who gets the better of those disputes.

I don't think the SP is a reflection of how poorly run the company is at the moment, it's just coincidental! There are plenty of examples of poor decision making at the top that stretch back years at RM there is nothing exceptional about the current incumbent The SP is just a reflection of confidence atm and lets be honest we all know who the payrise dispute is going to favour don't we? Thats my two pennorth anyhoos

regards

[HTPostman]

I don't think SP is a reflection of how poorly run the company is at the moment, it's just coincidental! There are plenty of examples of poor decision making at the top that stretch back years at RM there is nothing exceptional about the current incumbent

Am I the only one who keeps thinking SP = SpacePhoenix?

Sorry Space. And yes I know dispatch times could become later

[krussel]

It's market sentiment. You've got a company that's not too well healed, just a quick look at any Royal Mail fleet vehicle will tell you that we aren't investing any money in the things that actually deliver stuff (that goes for us too, where's the new uniforms?). Also an impending conflict on pay. The cost of fuel skyrocketing coupled with the threat of stagflation in the coming months. You gotta ask yourself, why would anyone but our shares? Apart from a decent dividend at this level but for the ressons outlined above, I believe an unsustainable one. It's ok having loads of parcels to deliver, but we've seen before, that doesn't necessarily translate into loads of profit. You can only go so long neglecting your infrastructure and staff, it's going to catch up some day.

This is why Simon and Co should have recognized a long time ago. Instead of putting our future in very grey colours. They should have recognised the workforce. Split the 400m between rewarding staff and shareholders. Dividends are quite important to attract people to invest in the company and it translates usually into an opportunity to raise money. For me the biggest sin of Simon is that he's going to crash head on with the union and he does nothing to avert the strike. He ha also painted our future in very dark colours.

I understand that revenue won't be as high as it was during the pandemic but assuming that sickness levels will come down and given the fact that parcels are still way above pre pandemic levels we are going to remain profitable. Given the fact we have just streamlined our management structures as well as launched revisions that I believe both improve efficiency and ultimately save money, well at least on paper If he was willing to look after his people and avoided clash with the union and IA threats in the first place, if his statement was much more positive and in fact it should have been as royal mail after all did remarkably well and as per looming inflation they have put the prices up anyway. Royal Mail would be in much better position but I guess playing it all down helps them at negotiating table. He knows full well even if we get 2-3% payrise with the long term trend of buying more staff online, once we will launch the parcel hubs and expand sunday service, we will still be making hundreds of millions.

He wants more, this is the type of guy who can see just the spreadsheets and doesn't care one bit about his people. If he did most likely RM would be still a FTSE100 company and with workforce willing to go the extra mile. Instead he has nearly hundred thousand posties with rock bottom morale, beaten to the ground. Rather thinking of calling sick than going the extra mile for the company, he has the IA threat and because he invited the big boys to short the stock, we are out of FTSE100 and still falling. He should go.

Very well said

[TopperGas]

Some interesting/good posts in this thread.

Reality is Thommo's performance is judged most importantly by the shareholders, despite how low morale is in the DO's a continued divi will keep the long term holders content. Share Prices are still so unstable since the start of the Pandemic that the situation isn't really going to panic LTH. And though I hate to criticise, the toothless approach that the Union has had to the pay rise disputes over the last 10 years or so with protracted settlements negotiated and agreed, and then backdated ,this is indicative of who gets the better of those disputes.

I don't think the SP is a reflection of how poorly run the company is at the moment, it's just coincidental! There are plenty of examples of poor decision making at the top that stretch back years at RM there is nothing exceptional about the current incumbent The SP is just a reflection of confidence atm and lets be honest we all know who the payrise dispute is going to favour don't we? Thats my two pennorth anyhoos

regards

Surely the share price, relative to other FTSE co's share prices, is a reflection on what shareholders think about the business, given they are selling RM shares and purchasing other co's shares they consider are likely to offer better value/prospects hence the drop in share price.

All this mess could have been avoided if RM offered a decent pay rise, like most other companies seem to have done, and if they wanted to make changes then link them to the new bonus scheme as a carrot. Now, months later, none of use really know what changes RM really want to make, just still vague rumours, the latest attack on Worksplace seems to be sickness pay but still no suggestions how the company really intends changing the sickness pay terms.