Tiny Royal Mail allocations see Cable’s hopes for long term investors dashed
Business secretary Vince Cable had hoped for Royal Mail shares to go to long term investors – not just those that he thought would want to make a quick buck.
But due to the small allocations granted to retail investors, many are now selling out. As Ishaq Siddiq of ETX Capital points out, with only 227 shares a piece the stocks that retail investors hold are "too small of an investment to really be described by retail investors as a long term holding".
Many of the retail investors wanting to fill their share ISA allowance of £11,520 were snubbed, as those that applied for more than £10,000 in shares were left with nothing. If Cable wanted more long-term investors then those were the ones to look to.
Shares in Royal Mail are now trading around 50 per cent higher than their 330p float price.
Look at all those 227 trades. That's Mrs Miggins and crew dumping their whole stake in Royal Mail for a quick buck. pic.twitter.com/O3yCPfCb01
— Victoria Fritz (@VFritzNews) October 15, 2013