Guest 756- Registered: 6 Jun 2012
- Posts: 727
Money, money, money it's a rich mans world.....
Guest 710- Registered: 28 Feb 2011
- Posts: 6,950
Ah yes Lesley, but should we now turn 'Paloma Blanca' or make this more 'Waterloo'?
Ignorance is bliss, bliss is happiness, I am happy...to draw your attention to the possible connectivity in the foregoing.
Keith Sansum1
- Location: london
- Registered: 25 Aug 2010
- Posts: 23,942
yes Lesley
whilst those of us at the bottom of the pile struggle on
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Brian Dixon
- Location: Dover
- Registered: 23 Sep 2008
- Posts: 23,940
Brian Dixon- Location: Dover
- Registered: 23 Sep 2008
- Posts: 23,940
howard mcsweeney1- Location: Dover
- Registered: 12 Mar 2008
- Posts: 62,352
not sure it is a good thing to privatise fiona phillips brian, unlikely to shut her up for long.
Brian Dixon- Location: Dover
- Registered: 23 Sep 2008
- Posts: 23,940
the royal mail howard not her.
Keith Sansum1- Location: london
- Registered: 25 Aug 2010
- Posts: 23,942
Royal mail used to be an industry to be proud of
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howard mcsweeney1- Location: Dover
- Registered: 12 Mar 2008
- Posts: 62,352
until fiona phillips stuck her oar in.
Keith Sansum1- Location: london
- Registered: 25 Aug 2010
- Posts: 23,942
Lots of mismanagement
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howard mcsweeney1- Location: Dover
- Registered: 12 Mar 2008
- Posts: 62,352
Guest 655- Registered: 13 Mar 2008
- Posts: 10,247
Actually Howard - because of the demand the shares will be priced at the top of the range worked out by the market makers, the correct response to the demand.
http://www.bbc.co.uk/news/business-24462388
Pricing a company is always a balance and one not easy to achieve. It is not unusual for new flotation share prices to shoot right up in response to initial demand. In fact it is quite common and is not something specific to privatisations.
Incidentally - you should be pleased if the price shoots up because the remaining government owned stock will rise in value alongside it. Further sales of the government holdings will reflect the actual price.
Guest 655- Registered: 13 Mar 2008
- Posts: 10,247
Lesley Ives wrote:Money, money, money it's a rich mans world.....
Why?
You do not have to have a lot of money to invest in shares, anyone can do it either directly or via mutual funds. Even £50 per month into a decent equity mutual fund in a shares ISA will build up into a lot of money over time.
Guest 710- Registered: 28 Feb 2011
- Posts: 6,950
So, Barry. There is a Money Tree.
Ignorance is bliss, bliss is happiness, I am happy...to draw your attention to the possible connectivity in the foregoing.
Guest 756- Registered: 6 Jun 2012
- Posts: 727
I agree Barry but it has been reported that very few of the shares will reach the man in the street due to the demand from the bigger companies.
Guest 655- Registered: 13 Mar 2008
- Posts: 10,247
Those 'big companies' will be mutual fund investment companies and will benefit the stocks and shares ISAs and pensions of their largely small investors. In my view, for small investors, it is better to invest via such funds and gain a spread of investment rather than a concentrated holding. Consequently the 'man in the street' will benefit from these institutional holdings.
Guest 698- Registered: 28 May 2010
- Posts: 8,664
Only complain about them not reaching the man in the street if firstly, you have applied for shares and secondly, you don't get all you subscribed for.
I was not going to bother but when I saw all these Labour people jumping up and down saying how it's being sold off so cheap, I went in for £3000.
I'm an optimist. But I'm an optimist who takes my raincoat - Harold Wilson
Guest 710- Registered: 28 Feb 2011
- Posts: 6,950
I'm afraid that I know nought about the left-wing credentials of the city analyst mentioned here...
Royal Mail worth 82% more than government's valuation, analyst claims
Shares in the privatised postal service could be worth 599p - a hefty premium on the likely 330p flotation price
"Royal Mail could be worth as much as £6bn, almost double the government's maximum valuation, according to a City analyst.
The valuation by stockbroker Canaccord Genuity was the second to say the government had seriously undervalued Royal Mail, potentially shortchanging taxpayers by more than £1bn. It came as ministers held an emergency meeting to decide how to share out Royal Mail's shares following overwhelming demand from the public, City investors and pension funds. It is understood David Cameron will make a final decision on Thursday afternoon.
Canaccord said it believed the government could have sold Royal Mail shares at 599p, 269p more than the shares will be sold at when the company floats on the stock market on Friday morning..."
http://www.theguardian.com/uk-news/2013/oct/10/royal-mail-privatisation-government-valuation-analystIgnorance is bliss, bliss is happiness, I am happy...to draw your attention to the possible connectivity in the foregoing.
Guest 655- Registered: 13 Mar 2008
- Posts: 10,247
Tom valuations at company flotations is not a science. At the end of the day they will be worth what people want to pay for the shares and estimates of value will vary before the launch.
I certainly hope that this particular broker is right for the simple reason there will be a nice gain to be had with the remaining 48% the government will still hold.
In fact they are pitching the sale about right in terms of the proportion they are retaining (for now) in order to gain maximum advantage for the taxpayer. If fewer than 50% were sold then that would depress the price so a sale of 52% is about right.
Guest 710- Registered: 28 Feb 2011
- Posts: 6,950
There is more on that Barry, later in the article. Not so good for Peter though.
Ignorance is bliss, bliss is happiness, I am happy...to draw your attention to the possible connectivity in the foregoing.