ChatterBank3 mins ago
The New Post Office
8 Answers
would it be wise to invest in shares in the new privatised post office ?
Answers
Best Answer
No best answer has yet been selected by Dee Sa. Once a best answer has been selected, it will be shown here.
For more on marking an answer as the "Best Answer", please visit our FAQ.The Post Office and Royal Mail have been completely separate for over a decade. There are no plans (and never have been) to privatise the Post Office; it's Royal Mail which is to be privatised.
A detailed answer to your (intended) question:
http:// www.tel egraph. co.uk/f inance/ persona lfinanc e/inves ting/10 303887/ Royal-M ail-how -when-w hy-and- why-not -to-inv est.htm l
Also well worth reading:
http:// www.the week.co .uk/pro sper/55 126/roy al-mail -shares -should -you-go -minimu m-750
. . . and a cautionary view:
http:// moneywe ek.com/ penny-s leuth-r oyal-ma il-ipo- warning /
A detailed answer to your (intended) question:
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Also well worth reading:
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. . . and a cautionary view:
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"The Post Office and Royal Mail have been completely separate for over a decade."
Post Office Ltd (formerly Post Office Counters Ltd until its 2001 name-change) was a wholly-owned division of Royal Mail Group Ltd (or its alter egos such as Consignia) from 1986 until 1st April 2012. On that date (facilitated by The Postal Services Act 2011) the shares in the Post Office were transferred from Royal Mail Group to Royal Mail Holdings plc and has operated independently since then.
http:// www.pos toffice .co.uk/ annual_ report/ governa nce/cor porate_ governa nce
http:// www.roy almailg roup.co m/about -us/who -we-are -0
Post Office Ltd (formerly Post Office Counters Ltd until its 2001 name-change) was a wholly-owned division of Royal Mail Group Ltd (or its alter egos such as Consignia) from 1986 until 1st April 2012. On that date (facilitated by The Postal Services Act 2011) the shares in the Post Office were transferred from Royal Mail Group to Royal Mail Holdings plc and has operated independently since then.
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Whatever the corporate governance arrangements, the main point here is that it is Royal Mail that it is being privatised, not the Post Office.
When governments sell shares they have to strike a balance between getting a high price to raise as much money as possible whilst making sure the sale is not undersubscribed. They also like to see small shareholders make a small profit as it helps generate a 'feel good factor'.
But if the whole stock market goes down after the sale price is set it is possible the value of the shares will drop.
If you want a quick profit i think there's a good chance, although after fees and buy/sell price differences it may be small.
As a long term investment, who knows.
When governments sell shares they have to strike a balance between getting a high price to raise as much money as possible whilst making sure the sale is not undersubscribed. They also like to see small shareholders make a small profit as it helps generate a 'feel good factor'.
But if the whole stock market goes down after the sale price is set it is possible the value of the shares will drop.
If you want a quick profit i think there's a good chance, although after fees and buy/sell price differences it may be small.
As a long term investment, who knows.
-- answer removed --
Presumably your concern is that the universal delivery obligation may be relaxed or removed in the future and that the remote parts of the Highlands and Islands may either lose a postal service entirely or see it severely restricted. Of course there are parts of England and Wales where this would present an equally serious problem but I believe there is to be a guarantee to preserve the universal obligation written into the legislation (though how watertight this will be I do not know).
Alas Scottish devolved powers do not stretch to allowing the Scottish Assembly to override the will of the Westminster Parliament in these matters and if the scheme goes ahead all the Royal Mail operations in the UK will be effected.
As far as the wisdom of investing in the new company goes most reports I have read suggest it is worth a punt.
Alas Scottish devolved powers do not stretch to allowing the Scottish Assembly to override the will of the Westminster Parliament in these matters and if the scheme goes ahead all the Royal Mail operations in the UK will be effected.
As far as the wisdom of investing in the new company goes most reports I have read suggest it is worth a punt.