The sale of the Royal Mail (RM) is yet another instance of selling the crown jewels by this current government, it has been grossly undervalued. The initial public offering (IPO) has valued them at £3.30 per share and after just a single day the value of these shares has jumped by 38% to £4.38. As suspected by many sources the original valuation of this organization was grossly wrong. Vince Cable personally owes the British Taxpayer at least £1 billion plus. Not only this, the dividend yield of RM has been estimated at 6-7%. The RM is a money making, profit making, public loved, public needed machine. The decision to sell it off is a typical short termism fix which a ridiculously inefficient, crazy government has done to try and reduce the deficit. There should of been a public vote on whether the sale of RM should be allowed. When you sell something you can only do it once this is so crass. , not This is one of the worst back stabbing public to private sale to date.
So anyone in their right mind would ask why on earth sell it, I did say in their right mind. Whereas this sale is in the mind of Vince Cable and his Tory partners. At a House of Commons committee on 09.10.13. Vince was directly asked about the sale of RM being undervalued. His response was that the price of shares goes up and down. It was revealed also the prospectus weighed in at 440 pages long. The period of notice between offering and actual selling was so short no single body would of had a chance to read through this prospectus. It turns out RM was also 7 times over subscribed. Vince doesn't consider vast amounts of shares would of been bought by overseas investors. These private organizations will for now make massive profits, massive. Vince says the shares will fluctuate but what he isn't understanding here is the IPO is now not one month or two months or six months, it is the current IPO pricing which has fallen exceedingly short of actual value. It is as though Vince has gone out of his way to give away money to foreign investors. Vince has in no doubt lost the plot, he can not be allowed to stay in office or to remain an MP. As Vince was asked how he came about the value of the RM he used the term "pilot fishing" and when questioned by MP Julie Elliott it was evident Vince had valued the RM by anecdotal, unrecorded discussions with investors. The same investors no doubt who were about to buy shares. I suppose it didn't occur to him they might devalue the price so as to enhance their own profit. Again this is evidence of a man who should not be in government, a man who has made a billion pound mistake. When asked about the capital assets of the RM one MP advised the Mount Pleasants building in London to be valued at at one billion pounds asked if this was going to be offset against the pension liabilities the government had accepted for RM employees. Vince as ever hesitant in his reply dodged around the question, forehead with a troubled frown. It is as though Vince has not actually considered the repercussions of this sale, has not considered the real value of the business and just jumped on the Tory bandwagon of selling off assets for a doddle.
So who gets the useful idiot award for the Tories, Mr Vincent (frown head) Cable, who probably should be considering a retirement from office. A long one, and as quickly as possible.
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