I am interested to hear any opinions about the proposed Royal Mail floatation. Will it remain a croc and sink or will it open at a premium and fly?

(Reuters) - Shares of Royal Mail (RMG.L) deepened its slump on Tuesday, hitting a record low, a day after the 500-year-old postal service warned annual profit would be far lower than expected, hurt by eroding logistics business margins and weaker letter volumes.

“We have been bearish on the outlook for productivity improvements, but yesterday’s profit warning was shocking in its scale and timing,” Liberum analyst Gerald Khoo said.

The brokerage slashed its target price on the stock to 250 pence from 415 pence and cut full-year earnings estimate by 30 percent and subsequent years by 38 percent.

Credit Suisse slashed its price target on the stock by 111 pence to 450 pence, while Deutsche Bank cut its target to 300 pence from 428 pence on Tuesday.

Although Royal Mail maintained its dividend, analysts warned that the policy did not look sustainable in the longer term."

similar slump this time last year below £4, they hit £6 six months later plus a juicy div.

Trading stock

Buy Buy Buy!!!

Bonfield.

Royal Mail reported revenue up 1% but a 25% decline in operating profits for the first half of the year. Chief executive Rico Back said a range of actions had been put in place to improve performance and confirmed the board's commitment to cut £100m of costs and generate adjusted group operating profit before transformation costs of £500-550m for the financial year.

Royal Mail tightened up its full-year profit guidance after what it said was a busy Christmas period. The letters and parcels group now expects to deliver adjusted group operating profit before transformation costs of £500-530m, from the £500-550m previously indicated.