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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Secondary Recommendation

UK Mail - Booming online commerce driving rapid growth in parcels division

November 2013

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • UKM
  • Price:
  • 599p
One reason why Royal Mail's float was “priced to go†was the headwinds it is facing, such as a unionised workforce and the structural decline in postal volumes. But interestingly, the internet and online shopping is also fuelling a massive boom in parcel growth and one company that has exploited this so well has been UK Mail, which on 25 September noted that trading was running ahead of expectations. Formerly known as Business Post, UK Mail, which was founded in 1971, was one of the first to spot the potential for a premium next day parcel delivery service and during the 90s the shares really caught fire, up 10-fold from 98p in 1994 to 957p four years later. In spite of the fact that its parcels business (54% 2013 profit) now o ...

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Related Articles

UK Mail (November 2014)
UK Mail - Parcels increase profits 37% (July 2014)
UK Mail - Parcel delivery business boosted by surge in online shopping (February 2014)

With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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