Nigel Littlewood and I spent quite a bit of time reading the prospectus ahead of the Royal Mail float. One only conclusion was possible: at the float price of 330p it was absurdly cheap. Even without fully understanding the potential for strikes, transformation costs, future CAPEX requirements and many other issues, it was clear the stock was a dead give-away. A yield of 6% (massive for a UK stock). A normalised PE (by our estimations) of 6-7. Good Balance Sheet. Great brand name. A growing business.
Royal Mail is now 523p.
Would love to have been a shareholder at the float.
Would love to have been one of the underwriters.
Would hate to be the guy who has to explain this to HMG.
Kristian
Disclosure: no position in Royal Mail
Royal Mail is now 523p.
Would love to have been a shareholder at the float.
Would love to have been one of the underwriters.
Would hate to be the guy who has to explain this to HMG.
Kristian
Disclosure: no position in Royal Mail
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