Is FedEx’s Trouble With the Feds a Game-Changer? – Motley Fool

Essentially, the government is charging FedEx as a drug trafficker, although no specific company executives or employees have been indicted. FedEx is flatly denying any wrongdoing and is vowing to hotly contest the issue in court, unlike UPS, which paid $40 million in a settlement in a similar dispute with the feds.

What it all means for FedEx investors
If FedEx is convicted on the Justice Department’s charges, then the company would have to pony up big time. FedEx would be responsible for paying a whopping $1.6 billion fine, almost twice as much as the $820 million the feds say FedEx made off of illicit drug operations. To put this number in perspective, FedEx reported $11.6 billion of revenue and $730 million in net income in the fourth quarter of fiscal 2014.

So, if FedEx does lose its case in court, the company may take a relatively big hit in the short term, which would hurt the company’s bottom line. Investors may be spooked from the stock as well, driving down confidence in the brand.

What’s Behind United Parcel Service’s Billion-Dollar European Investment Plan? – Motley Fool

United Parcel Service’s CFO Kurt Koehn made a big strategic announcement this month — he told German daily newspaper Sueddeutsche Zeitung that the company will invest $1 billion in Europe over the next three to five years. Though the full details won’t be revealed until November, Koehn provided some interesting snippets. Investments will be mostly in Germany, with emphasis on developing more logistics hubs. In terms of sector specialization, health care will be the focal point.

If we look at Germany’s growth prospects and UPS’ course of action in recent times, the announcement does not surprise; here’s why.

Germany is the eurozone’s biggest economy and growth driver. With fresh investments in the region, UPS can position itself better in comparison to rivals that are equally intent on milking the German recovery. Increased focus on health care could help derive big gains. The stage is set for UPS to up the ante in Europe.

UPS to Release 2nd Quarter Results on Tuesday, July 29, 2014

UPSĀ® (NYSE: UPS) will announce its 2014 second quarter results on Tuesday, July 29, 2014, at approximately 7:45 a.m. Eastern Time.

At 8:30 a.m. ET, UPS Chairman and CEO Scott Davis and Chief Financial Officer Kurt Kuehn will lead an investor conference call. This call will be open to reporters and the public on a listen-only basis, via a live Webcast.

To listen to the live Webcast, go to

The Webcast audio then will remain accessible on the Investor Relations Website for a limited time.

UPS A Great Stock For Dividend Growth Investors – Seeking Alpha

Looking at the balance sheet, we can see its current ratio in the most recent quarter stood at 1.88, which is slightly higher than 1.82 for FedEx. The company has $5.25 billion in cash, which is $7.41 per share, or enough to pay almost 3 years worth of dividends at the current rate of $0.67 per quarter.

So far, UPS is looking really good. However, even a great company can be a poor investment if bought at too high a price. UPS is trading at 20.2 times expected earnings for the current fiscal year, and only 17.5 times expected earnings for next year. The industry average P/E ratio stands at 23.5, which means UPS isn’t very expensive, considering the high expected earnings growth.

How Will UPS Benefit From These ‘Game-changer’ Treaties? – Motley Fool

In the past month, United Parcel Service executives have made it clear the company supports the passage of trade agreements currently being discussed between the U.S. and foreign economies.

UPS execs may have started talking more about the agreements now, due to a combination of mounting frustration with political gridlock and a strategic appeal to the public. TTIP has only formally been on the table since early 2013, but TPP has been under discussion for five years. Or, perhaps the company is looking for a volume boost now that its European hub has increased capacity.

Whatever the reason, the agreements carry growth potential for the company and interested investors should continue to monitor their development.