Shares in Royal Mail (LSE: RMG)were a steal at their flotation price of330p. It was just a shame that private investors could only get their hands on a £750 allocation at that price. The shareshave been comfortably over 600p since then, but have nowfallen back below 450p as the company has run into afew problems.
On Tuesday this week Royal Mail said that its letters business was doing a bit better than it had previously expected. Unfortunately, its parcels business where there is supposedto be lots of potential profits growth has not done as well. Parcels are a nice earner for delivery companies and it seems that the competition for all that online shopping is heating up.As a result, Royal Mail won't make as much money as it thought it would from parcels this year.
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