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<blockquote data-quote="Ricochet1a" data-source="post: 1117201" data-attributes="member: 22880"><p>Finally!!!! Someone who gets it.</p><p></p><p><a href="http://www.trefis.com/company?hm=FDX.trefis#" target="_blank">FedEx (NYSE:FDX) stock analysis and investing -- Trefis</a></p><p></p><p>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!!!!</p><p></p><p>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. </p><p></p><p>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. </p><p></p><p>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. </p><p></p><p>This is why the restructuring going on as you read this. Fred wants to get Express profitable again, to push FedEx stock EVEN HIGHER. </p><p></p><p>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. </p><p></p><p>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. </p><p></p><p></p></blockquote><p></p>
[QUOTE="Ricochet1a, post: 1117201, member: 22880"] Finally!!!! Someone who gets it. [URL="http://www.trefis.com/company?hm=FDX.trefis#"]FedEx (NYSE:FDX) stock analysis and investing -- Trefis[/URL] 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. [/QUOTE]
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