The Royal Mail floatation

[davywavy]

The thing which has really struck me about the Royal Mail floatation this morning is the people claiming 'the city' has put a valuation of 700p on Royal Mail shares and this 'proves' the float was 80% undervalued.
What they're referring to is an investors note put out by Cannacord Genuity yesterday which lists a valuation of 700p a share.

To understand why they're wrong, imagine this.
You've just walked onto a garage forecourt. A man you've never met before in a rather nice suit sidles up to you and says "'ere, squire. See this car? A real bargain. Worth seven graand it is, but I can let you 'ave it for four and an 'alf." He taps his nose conspiratorially.
"Special price just for today", he adds. "Be more expensive tomorrow, squire, so you need to buy now." He looks at his watch. "Right now."

At which point a bunch of Guardian readers pop up and start shouting about how this proves the car is undervalued and how that's an outrage.

And the moral of this story is don't take Guardian readers with you if you're buying a car.

Comments

[(Anonymous)]

I get paid quite a lot of money to advise people on procuring things - to be fair mainly IT related, not cars - yet I read the Guardian.

[(Anonymous)]

would that be public sector procurement?

[(Anonymous)]

Not exclusively

[(Anonymous)]

a reply worthy of a politician.

[davywavy.livejournal.com]

Let me guess. You're Vince Cable and he's Chukka Ummuna, right?

[davywavy.livejournal.com]

Got a percentage? I'm curious now as well.

[(Anonymous)]

Virgin keep trying to sell me broadband using this script

H

[davywavy.livejournal.com]

Clearly your broadband is undervalued. Buy! Buy!

[(Anonymous)]

I saw 30% profit and socialist flat earther unions threatening strike action, and took the money. £250 profit on both accounts (thanks HMG) and so long suckers.

[davywavy.livejournal.com]

I'll be interested in what the closing price is today.

[(Anonymous)]

I expect it will be up, but can't be bothered watching when I had such a small allocation. Quick buck, run away, leave explaining to the commie looters where the magic money tree has gone to someone else.

[davywavy.livejournal.com]

Yeah, but up how much is what I'm interested in. The she-David asked me over breakfast what I thought the price would open up this morning and I said thirty percent, at which point the 8 o'clock news came on "Shares in the Royal Mail have opened up thirty percent..."

She just gave me one of her hard stares.

[(Anonymous)]

How much will HSBC be up in the morning now the GOP have folded and told barry he can print as much money as he likes, then lend it himself free to buy more fairness?