Have anyone heard that Amazon is disgruntled about UPS?

[barnyard]

If you watch what Berkshire Hathaway buys, one could more easily envision them buying UPS than Amazon. UPS is the largest customer of one of Berkshire's companies. That scenario would make far more sense. Plus, a Berkshire Hathaway purchase would be good for UPS and it's employees. BH focuses on companies that can grow and then encourage that growth. Plus, they have experience with a unionized workforce.

 

[BMWMC]

51 billion, and they still lose money in the majority of quarters.

Amazon growth rate from 2011 to 2012 was 27%. They are the largest internet sales company and portal on the internet. Internet sales still only account for 10% of all retail sales. If Amazon where to only maintain its growth rate for 5 years its sales will be over 215 billion $$$$. 10 years 557 BILLION. That's why its stock is flying. Its all about the growth.

With that kind of cash flow and the way it makes its money buying a shipping company makes absolute sense. UPS is small potatoes and at a cheap price compared with what Amazon will be in 5-10 years.

 

[BMWMC]

...]

 

[Catatonic]

UPS is much more than just a transportation company.

The future of UPS is Logistics.

 

[Catatonic]

Amazon growth rate from 2011 to 2012 was 27%. They are the largest internet sales company and portal on the internet. Internet sales still only account for 10% of all retail sales. If Amazon where to only maintain its growth rate for 5 years its sales will be over 215 billion $$$$. 10 years 557 BILLION. That's why its stock is flying. Its all about the growth.

With that kind of cash flow and the way it makes its money buying a shipping company makes absolute sense. UPS is small potatoes and at a cheap price compared with what Amazon will be in 5-10 years.

Your analysis is a moot point.
UPS owns or controls more than enough Class A shares with it's 10 - 1 voting ratio over Class B shares to block it's purchase by any company.

 

[BMWMC]

Your analysis is a moot point.
UPS owns or controls more than enough Class A shares with it's 10 - 1 voting ratio over Class B shares to block it's purchase by any company.

ANY public company can be bought period. It would be a breach of fiduciary responsibility to not sell at a huge profit to shareholders. Moot that!

 

[oldngray]

http://www.investopedia.com/terms/p/poisonpill.asp

 

[Catatonic]

ANY public company can be bought period. It would be a breach of fiduciary responsibility to not sell at a huge profit to shareholders. Moot that!

Do a little research into who owns and controls UPS Class A stock and you will understand why that 10-1 ratio distinction was put in place.
What you think is true is for probably almost every other publicly traded stock.
Not so for UPS.
Even the Board, to whom the fiduciary responsibility applies, can't trump Class A ownership and control.

 

[fiddledee]

ANY public company can be bought period. It would be a breach of fiduciary responsibility to not sell at a huge profit to shareholders. Moot that!

There comes a time when you should let go of a bad argument rather then adding to it. A potential buyer can not buy the higher voting rights of class A shares. Any shares sold have to convert to B shares with one tenth of the voting rights. Not selling is not necessarily a breach of FR in any terms. Instant profit would have to be weighed against the prospects of future profit. FR involves doing whats right for the company and its employees not selling the company to the first salesman with pretty beads that shows up.

 

[fiddledee]

Well there is your problem...

word through the union...

Staffed to the gills here and people are still beating down my door to get hired. All my drivers went into today with over 15 hours left for the week and we are not working Sat!

The important question to answer would be how many sales leads you got this week...

 

[UPSGUY72]

Amazon doesn't make money. They loose billions a dollars a year on free shipping. There annual profit (last year) was -$39 million. Sooner or later they are going to have to stop free shipping or raise there prices.

Bezos has become a billionaire only because of the stock not because the company actually makes money.

 

[BMWMC]

Do a little research into who owns and controls UPS Class A stock and you will understand why that 10-1 ratio distinction was put in place.
What you think is true is for probably almost every other publicly traded stock.
Not so for UPS.
Even the Board, to whom the fiduciary responsibility applies, can't trump Class A ownership and control.

I fully understand the voting rights and ratio but if you where a class A shareholder and got and offer for twice your share price and shares in the new combined company would simple arrogance and self-aggrandizement preclude you from selling? Would you not be calling for the heads of the board of directors for refusing???????????? Come on. Are we serious here!

 

[BMWMC]

There comes a time when you should let go of a bad argument rather then adding to it. A potential buyer can not buy the higher voting rights of class A shares. Any shares sold have to convert to B shares with one tenth of the voting rights. Not selling is not necessarily a breach of FR in any terms. Instant profit would have to be weighed against the prospects of future profit. FR involves doing whats right for the company and its employees not selling the company to the first salesman with pretty beads that shows up.

 

[Catatonic]

I fully understand the voting rights and ratio but if you where a class A shareholder and got and offer for twice your share price and shares in the new combined company would simple arrogance and self-aggrandizement preclude you from selling? Would you not be calling for the heads of the board of directors for refusing???????????? Come on. Are we serious here!

Since you are too lazy or don't understand how to take my advice.
The BOD does not control enough votes to make "THAT" decision.
Over 50% of the votes are owned or controlled by individuals or trusts that have no relationship to the Board and those individuals/trusts are selected and responsible to ensure that UPS never falls under control of an outside entity like Amazon or Carl Icahn.

 

[BMWMC]

Since you are too lazy or don't understand how to take my advice.
The BOD does not control enough votes to make "THAT" decision.
Over 50% of the votes are owned or controlled by individuals or trusts that have no relationship to the Board and those individuals/trusts are selected and responsible to ensure that UPS never falls under control of an outside entity like Amazon or Carl Icahn.

Listen here I don't care if Santa Claus owned the shares MONEY talks bullsheet walks. Nobody with half a brain would refuse a deal that made them huge profits. That's just the way the world works and UPS shareholders isn't on some island immune to it. WOULD YOU REFUSE A DEAL LIKE THE ONE I HYPOTHESIZED?

 

[fiddledee]

Yes I will sell you my shares for some ridiculous price. At that point my A shares will have to be converted to B shares before I can sell them to you. you will therefore never earn the voting rights to take control of the company. If the company decides to fight your takeover then they can buy my A shares and keep them A shares and maintain the 10 to 1 voting rights.

 

[Catatonic]

It appears that this concept is not something you can understand.
I respect and leave you to your beliefs.

 

[some1else]

Amazon and ups could never merge. I was talking to the guy at the amazon wharehouse during pickup and he said that amazon made them all sign a form saying they would only PULL in headfirst to parking spaces!! Amazon got mad they where racing out of the parking lot too fast. How would a company that makes its employees pull into spaces ever be able to merge with ups!!!

 

[BMWMC]

It appears that this concept is not something you can understand.
I respect and leave you to your beliefs.

You never answer my question. Would you sell? There's your retort.

 

[BMWMC]

Yes I will sell you my shares for some ridiculous price. At that point my A shares will have to be converted to B shares before I can sell them to you. you will therefore never earn the voting rights to take control of the company. If the company decides to fight your takeover then they can buy my A shares and keep them A shares and maintain the 10 to 1 voting rights.

Exactly. Sometimes the deal seems like good sense like AOL buying Time Warner that ends up bunk or ARM buying United and seem to work. Nothing is out of the question when money and ambition meet. So how's my lame and wasted argument going now?