FedEx Stock

Discussion in 'FedEx Discussions' started by MrFedEx, Apr 3, 2013.

  1. MrFedEx

    MrFedEx Engorged Member

    We really need to start discussing our stock, and getting the word out to investors. You know, how it's extremely overvalued, how the DRA disaster is dragging-down profitability, and that the new people we're hiring are about a quarter as productive as an experienced, competent courier. Express is excrement swirling down the toilet bowl, just making a few more spirals before it takes that final plunge into the sewer.

    How many multi-million dollar lawsuits are in the pipeline right now? A bunch.

    Eventually, word is going to be getting out as to the way this company is really run, and the stock is going to sink like a lead balloon. We are being "led" by utter incompetent fools, who are destroying the company as quickly as they can while simultaneously rewarding themselves for both their incompetency and idiocy.

    Do not invest in FedEx. If you are in, it's time to get out.
     
  2. Mr. 7

    Mr. 7 The monkey on the left.

    Show me 3.
     
  3. thedownhillEXPRESS

    thedownhillEXPRESS Well-Known Member

    Google Fedex Ground lawsuit, dozens of them alone.
     
  4. bbsam

    bbsam Moderator Staff Member

    just googled it. Dozens of stories, hard to say how many lawsuits and many of the listings are several years old. Take it for what it's worth.
     
  5. FedExRookie

    FedExRookie Member

    MrFedEx, you have such a hard on for Express that you forget the stock reflects all entities of FedEx. While I agree the stock is overvalued, it is not as bad as you imply. Investors are confident that ground will absorb the loss of freight from express and continue to make 17 cents on the dollar. I believe Freight is finally in the black, or will be this quarter, adding more reason for the stock to be highly valued. The asian market is suffering as a whole, investors believe FedEx will grab a strong portion of the market as it rebounds.

    edit: ground to express
     
    Last edited: Apr 4, 2013
  6. Ricochet1a

    Ricochet1a New Member

    Finally!!!! Someone who gets it.

    FedEx (NYSE:FDX) stock analysis and investing -- Trefis

    Pull up the link and see how the various components of FedEx contribute to its stock price. Its NOT Express which is driving FedEx stock - it is GROUND!!!!

    Ground is driving about 80% of the current FedEx stock price. Why is that? Because Ground is where the profits are and that is what drives stock price for a well established large corporation.

    Book valuation becomes almost meaningless in a very large corporation, since book valuation is obliterated in the event of actual liquidation. It is all driven by final profit margin, and Ground is where it is at.

    Express only contributes about 15% to the stock price of FedEx. As far as Wall Street is concerned, Express is merely a jobs program for 135,000 people.

    This is why the restructuring going on as you read this. Fred wants to get Express profitable again, to push FedEx stock EVEN HIGHER.

    Express is considered the 'lagger' NOT Ground. This is why all this talk of 'driving down stock price' is utter non-sense. Express could practically lay an egg this year, and it would have absolutely no real effect of stock price. The only thing about Express that is holding stock price back RIGHT NOW - is the buyouts which are a serious negative cash flow for the coming FY.

    However, the anticipation of reducing the Memphoid population by 20% will have an anticipatory price increase factored into FedEx stock price. Analysts see $115 in the short term, and potentially $135 if the restructuring of Express improves cash flows by early next year.

     
  7. MrFedEx

    MrFedEx Engorged Member

    Agree to disagree. Ground might be driving stock prices but the disorganized mess that is Express will drive down profits and smear the reputation of all the opcos.

    Glad you have so much faith in Ground's abilities and legality. I do not, and see the stock not reaching the values you predict.
     
  8. vantexan

    vantexan Well-Known Member

    The cardinal rule on Wall Street is that a company must show growth that results in increased profits. If a company is operating in a, to quote Fred Smith, "saturated market", it's growth is stymied. Since producing results that rewards it's stockholders is paramount, it seeks other avenues that have the potential to increase profit. In our case it's Ground. They'll do what they can to shore up Express, but the real money is in trucking freight with the advantages they have in the Ground contractor model. We are yesterday's news in this company because it's just not good enough to continue as is, producing X amount of profit and excelling in our overnight niche. They want that high stock price so that they can cash in, and if they have to use us, exploit us, cheat us to do it then too damn bad if we don't like it. That's the company we work for, in a nutshell, and the reason I don't think we'll ever see a union is they have us right where they want us, spent millions to get us there, and will fight tooth and nail to keep us there. Want change? Everybody pony up as much as you can afford to start buying Congressmen. But they have more than we do so it's money down :censored2:.
     
  9. Guapo

    Guapo New Member

    It's been a while but last time I checked Morningstar they put a value on fdx at around 140 give or take. There's really nothing any courier can do about fdx stock price, tell the mailroom guy, receptionist, receiving personnel all day about your gripes and they'll laugh when you leave. Can any one here get a meeting with a top level vanguard manager????
     
  10. MAKAVELI

    MAKAVELI Well-Known Member

    We really don't have to try to do anything to drop the stock price. It will happen as a result of the mismanagement of this company. Upper management doesn't need our help in that department.
     
  11. MrFedEx

    MrFedEx Engorged Member

    Exactly. What makes anyone out there think that upper management is any more competent at managing Ground than Express? They absolutely are NOT. Ground is their darling right now, and also their cash cow, but the only reason it's a "star" is the nature of the Ground scam itself. Low pay and no benefits equal a business model where UPS can be undercut on price.

    The very nature of our upper management is incompetence..and arrogance. This is what is going to eventually get them in trouble with Ground. They think the Ground ISP/Contractor model is bulletproof. bbsam and the rest of them get on here and brag about how FedEx can overcome any legal challenge and that the Ground model is continuously upheld in court...blah,blah,blah. This is whistling past the graveyard, because their time is coming. UPS is not going to stand idly by forever and watch their business disappear, nor are the non-employee "employees" of Ground going to remain placid sheep forever. Eventually, they're going to wake-up to the screwing they are getting and either walk or demand more. The courts will take notice of the ever-increasing profitability of Ground and the politicians will start hearing more complaints about the FedEx cost advantage....the non-level economic playing field.

    Another factor is that FedEx Freight could very well go union. To have one of Fred's opcos turn on him and go Teamster would be huge. This is where the door starts to open a bit wider for us, although the RLA is still in our way. A unionized Freight would reduce profits, probably more than a chaotic, low-morale Express. Fred wouldn't be able to contract out Freight runs to cheap gyppos any longer and the wage structure would improve.

    The main point is that the stock can and will be affected by the other opcos, and reputation absolutely does matter in this business. A lot of customers aren't liking the new DRA Express where they see one courier for P1, another for P2 and a third for pickups. Then, they also have to see the Ground person or maybe even the Freight driver. 5 or 6 FedEx employees through the door every day? That doesn't look very "efficient", especially when the average customer can't tell the opcos apart.

    We still need to do everything possible to tank both profit and the repuation of FedEx for excellence. This will adversely affect the stock, and if and when Ground needs to alter it's business model, the stock is in the toilet.

    Ground isn't infallible.
     
  12. thedownhillEXPRESS

    thedownhillEXPRESS Well-Known Member

    When a customer laughs inquiring why I am the x numbered fedex guy they have seen today, I just tell them "oh, thats just the company trying to keep the union out"....

    Have done it for years, stops them in their tracks and you can see them thinking..
     
  13. vantexan

    vantexan Well-Known Member

    Of course all of this is predicated on judges being above any possibility of being bribed. As we all know Congress certainly refused millions in campaign contributions.