Home
Forums
New posts
Search forums
What's new
New posts
Latest activity
Members
Current visitors
Log in
Register
What's new
Search
Search
Search titles only
By:
New posts
Search forums
Menu
Log in
Register
Install the app
Install
Home
Forums
Brown Cafe UPS Forum
UPS Partners
4th quarter numbers look good. Too bad it's in the MIP donut hole
JavaScript is disabled. For a better experience, please enable JavaScript in your browser before proceeding.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an
alternative browser
.
Reply to thread
Message
<blockquote data-quote="pretzel_man" data-source="post: 807852" data-attributes="member: 927"><p>I am not a fan of UPS as a public company....</p><p> </p><p>Maybe it was necessary. I have heard some stories from people who made the pitch to the board. I heard that we didn't have enough money to pay for the stock sales of the baby boomer's retirement. I heard that we needed to do this to be a player in the Global Economy where stock is the currency.</p><p> </p><p>I don't know, but I'm still not a fan.</p><p> </p><p>On the other hand, there is no question that stock is at a higher price today than if we were private. As a private company, we kept our PE ratio at betwen 12 and 15. As a public company, we settled down between 18 and 21. Accept it or not, if we were private, stock would be 25% to 30% lower than it is today.</p><p> </p><p>Of course, there was the initial public years where we had astronimical PE ratios between 25 and 29. As revenue grew, PE just shrunk....</p><p> </p><p>This meant that new management people never saw stock growth. Any management person hired in the last 10 years has not seen any return on UPS stock. There was no reward for holding onto shares like my generation did. If we were private, they would at least have shared in the growth over the last 10 years. </p><p> </p><p>To me, this is the worst part. Those new management people. That hurt our culture.</p><p> </p><p>Finally, Its not totally one-sided like that.... I think those "never will haves" need to take a little responsibility too.</p><p> </p><p>What do they do with the Cash portion of their award? The 50% that they can determine what to do with?</p><p> </p><p>From what I see, the vast majority take cash. Our old generation never had that "choice". Are they saving it? Buying UPS stock through DESPP? Investing it in a portfolio? IRA? 401k?</p><p> </p><p>If they are spending it, then that is part of the problem too. </p><p> </p><p>While us old guys made some money on UPS growth, it was the "forced investment" that was the true cause. If we were "forced" to put our MIP in the S&P 500, we would have been well off too.</p></blockquote><p></p>
[QUOTE="pretzel_man, post: 807852, member: 927"] I am not a fan of UPS as a public company.... Maybe it was necessary. I have heard some stories from people who made the pitch to the board. I heard that we didn't have enough money to pay for the stock sales of the baby boomer's retirement. I heard that we needed to do this to be a player in the Global Economy where stock is the currency. I don't know, but I'm still not a fan. On the other hand, there is no question that stock is at a higher price today than if we were private. As a private company, we kept our PE ratio at betwen 12 and 15. As a public company, we settled down between 18 and 21. Accept it or not, if we were private, stock would be 25% to 30% lower than it is today. Of course, there was the initial public years where we had astronimical PE ratios between 25 and 29. As revenue grew, PE just shrunk.... This meant that new management people never saw stock growth. Any management person hired in the last 10 years has not seen any return on UPS stock. There was no reward for holding onto shares like my generation did. If we were private, they would at least have shared in the growth over the last 10 years. To me, this is the worst part. Those new management people. That hurt our culture. Finally, Its not totally one-sided like that.... I think those "never will haves" need to take a little responsibility too. What do they do with the Cash portion of their award? The 50% that they can determine what to do with? From what I see, the vast majority take cash. Our old generation never had that "choice". Are they saving it? Buying UPS stock through DESPP? Investing it in a portfolio? IRA? 401k? If they are spending it, then that is part of the problem too. While us old guys made some money on UPS growth, it was the "forced investment" that was the true cause. If we were "forced" to put our MIP in the S&P 500, we would have been well off too. [/QUOTE]
Insert quotes…
Verification
Post reply
Home
Forums
Brown Cafe UPS Forum
UPS Partners
4th quarter numbers look good. Too bad it's in the MIP donut hole
Top