Royal Mail float

[kevpuk]

That's where mine will live, if I get them as applied for.

[mudskipper]

OK - for any other noobs, this is how it worked for me.

It was fairly painless - I went with H&L.

Clicked on their 'royal mail' logo, and told it to set me up a new ISA account.

Filled in the form and transferred money in using my debit card.

Note - I transferred in the full ISA allowance - didn't realise you can only buy the RM shares in fixed amounts, so I've got £760 left that I've got to work out what I can do with... (so if you're doing this, check the amounts first).

All went through OK. Can't log onto my account yet - that can take up to a day.

No charge for buying the shares because it's an IPO. Management charge of 0.5% pa - max of £45 per year.

[SimonMac]

OK - for any other noobs, this is how it worked for me.

It was fairly painless - I went with H&L.

Clicked on their 'royal mail' logo, and told it to set me up a new ISA account.

Filled in the form and transferred money in using my debit card.

Note - I transferred in the full ISA allowance - didn't realise you can only buy the RM shares in fixed amounts, so I've got £760 left that I've got to work out what I can do with... (so if you're doing this, check the amounts first).

All went through OK. Can't log onto my account yet - that can take up to a day.

No charge for buying the shares because it's an IPO. Management charge of 0.5% pa - max of £45 per year.

Damn if I knew you were going to listen to me for once I would have got the referral bonus lol!

Liquidated some gains in LLOY and AV to by £5k hoping to just fire them away in my SIPP and forget about them in the short term

[PEEL]

I know the high div yields make it a seemingly sound investment for SIPPs and so on, but I plan on going in and out over 3 months. There is next to no downside risk in the short term if you ignore union action and I am hoping the share price gets bouyed by the companies introduction to the FTSE 100, as I think the greater % of tracker funds on the 100 as opposed to the 250 will push prices up. I don't take a view on the price to earnings because I don't know enough about the management structure and what level of growth the company could see, but for the long term investors the interest coverage ration will be a massive plus.

All in all, I'm sold on it for a few k.

[SimonMac]

I know the high div yields make it a seemingly sound investment for SIPPs and so on, but I plan on going in and out over 3 months. There is next to no downside risk in the short term if you ignore union action and I am hoping the share price gets bouyed by the companies introduction to the FTSE 100, as I think the greater % of tracker funds on the 100 as opposed to the 250 will push prices up. I don't take a view on the price to earnings because I don't know enough about the management structure and what level of growth the company could see, but for the long term investors the interest coverage ration will be a massive plus.

All in all, I'm sold on it for a few k.

Look at what happened to Facebook IPO, all that hype ad it took 12 months to get back to the Offer Price, I am in it for the long term

[PEEL]

Look at what happened to Facebook IPO, all that hype ad it took 12 months to get back to the Offer Price, I am in it for the long term

A stock increasing in price by x%, going back up to the offer price, is not neccessarily a good thing if the whole market has moved 1.5x% (not an exact number, but you should get my point about beta). Facebook is a bad example anyway, as just before issue the underwrites downgraded the revenue forecast

[SimonMac]

Looks like the offer has already been over subscribed

[gingerjedi]

Noob question.

So if I want buy and sell in the short term is there any advantage of an ISA or would the 'Fund and Share Account' be more suitable?

[ctdctd]

Noob question.

So if I want buy and sell in the short term is there any advantage of an ISA or would the 'Fund and Share Account' be more suitable?

Only short term advantage would be that ISA's are exempt from Capital Gains tax - so if you expect to have more than the current CGT tax free limit of £10,900 this year, an ISA could help.

If not, keep it simple and use a fund account.

[gingerjedi]

Only short term advantage would be that ISA's are exempt from Capital Gains tax - so if you expect to have more than the current CGT tax free limit of £10,900 this year, an ISA could help.

If not, keep it simple and use a fund account.

But is does say you don't need to declare ISA's on your tax return, I'm nowhere near the CGT limit so would it just be easier to use an ISA from an tax return admin point of view?