The Deutsche Post World Net Share in 2007
As the year 2007 draws to a close, the share price of Deutsche Post World Net has recovered to some extent from the downturn during the third quarter. After reaching an annual low of 19.95 Euros in early October, the stock has rebounded to 23.15 Euros on December 19. This marks the end of a year that has also seen a historic record high of the share price in summer, when it peaked at 25.65 Euros.
As a result of the rebounding share price, Deutsche Post World Net stock has outperformed several major competitors since the start of the year, in particular FedEx, TNT and UPS. Compared to the main indices, the Deutsche Post World Net's share price has underperformed in 2008. While it continues to lag behind the development of the DAX 30 on an annual basis, it has however nearly closed the gap to the EURO STOXX 50 in December.
The share price increase during the past weeks runs parallel with the announcement of the Roadmap to Value and increasing security about the future regulatory environment for the German mail business. With the capital markets program Roadmap to Value, Deutsche Post World Net has committed itself to generate more value for its shareholders. The program includes a comprehensive series of long-term measures to increase the profitability of the Group, to generate more cash, to distribute more cash to shareholders and to improve transparency. The initial feedback from many investors has been positive.
In addition to that, the rules for the German mail market in 2008 have now been determined. This includes decisions on the timing of the full liberalization, the price regime for the next years, the retention of the VAT exemption for Deutsche Post World Net and the introduction of a minimum wage for mail delivery workers. Those developments, which are mostly in favor of Deutsche Post World Net's goals, have significantly reduced the insecurity about the mail market, which has been a burden for the share price for quite some time.