Monday, October 21, 2013

Royal Mail - the cheque is in the post

I have just placed an order to sell my tiny holding of Royal Mail shares, which are trading just north of the £5 mark. The sudden ramp up in the share price (they floated at £3.30 a week ago) begs the question why companies floating on the stock market don't ask their arrangers to put together an auction instead of flogging the shares at a guesstimated fair value.

Before anybody accuses me of boasting of my acumen, let it be known that I also just lost out on a speculation on outcome of the deficit ceiling debacle in the US. I was short gold on decision day, expecting gold to drop a percentage point or two when the Republicans caved to protect their wealth. The stock market rallied but gold also rallied alongside, no doubt pulled up the denomination effect of a weaker dollar. Nothing and nobody to blame here but me and my incomplete thinking.

Oh well, swings and roundabouts.

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