Really?

Discussion in 'FedEx Discussions' started by vantexan, Jul 8, 2013.

  1. vantexan

    vantexan Well-Known Member

    Sr. Mgr. held a meeting this morning to discuss upcoming raise and healthcare changes. In 2014 there will be two options, so I was misinformed earlier. What got me is the cheaper option will have a $2250 deductible for employee only, up from $1250 now. And of course she went on about how great it was that we're getting 2% considering current Express profitability.

    But what was a real corker was she pointed out the current stock price of $95 and said that analysts were projecting a price of $114. Why was that important she asked? Because various opco's of FedEx were very valuable and the company could be subjected to a hostile takeover to sell off the various parts. Thus it was very important to get the price up to prevent this. So there you have it, we're doing all of this to prevent a takeover! I pointed out what Fred Smith said in October about increasing profits and she started shutting me down and said she'd talk to me after the meeting. We had quite a discussion where she said she wouldn't allow me to become a cancer in the workgroup. Said 4 or 5 times that I could leave the company if I don't like what's happening concerning pay, each time when she had no answer to what I was pointing out. Said the company was paying a very fair wage and again told me to leave if I want when I pointed out the fallacy. What struck me was how practiced she was at spinning the current conditions and how she tried to cut me off when I was expressing opinions she didn't like. Let's face it, for those who've worked themselves into her position, they see the pot at the end of the rainbow and aren't going to let any courier stand in the way of obtaining it. It isn't just a Memphis thing, it's systemic.
     
  2. bbsam

    bbsam Moderator Staff Member

    LOL. A hostile takeover?! Like a hostile takeover of what is left of your compensation!



    I do scoff at this. R1a? Any thoughts?
     
  3. vantexan

    vantexan Well-Known Member

    It would take a huge amount of money to get control of one of the world's largest corporations. And of course the obvious...if FedEx is vulnerable at $95 then companies interested in buying us out would be doing so now instead of waiting until the price is higher.
     
  4. hypo hanna

    hypo hanna Well-Known Member

    Hostile takeover? That's a hoot! Sometimes I think there is a special department of spin in Memphis that comes up with this silliness. I can hear them now..."well if we us the word "hostile", it will be all scary like to the minions."
     
  5. SmithBarney

    SmithBarney Well-Known Member

    Hostile takeover... by who? LOL honestly.
     
  6. bbsam

    bbsam Moderator Staff Member

    DHL?
     
  7. bbsam

    bbsam Moderator Staff Member

    Hostile to Fred = friendly to you?
     
  8. hypo hanna

    hypo hanna Well-Known Member

    That's the way I was looking at it. All new mgmt at the top could be a very good thing.
     
  9. bbsam

    bbsam Moderator Staff Member

    Now to chill the blood. What is the Chinese equivalent to DHL?
     
  10. bbsam

    bbsam Moderator Staff Member

    "Oh, Fedex could never get worse...oh...crap."
     
  11. Ricochet1a

    Ricochet1a New Member

    There is no 'hostile takeover' attempt anywhere in sight for FedEx. This manager IS spewing talking points that were cooked up on order to quash employee dissent though.

    The anticipated stock price is right on target. I posted not too long ago (you can look it up here, my purchase of that stock was one of the reasons I went silent last autumn and didn't post again till late this February) that I - yes I, purchased FedEx stock (through 3rd party) last autumn based off the impending reorganization going on within Express AND the extreme profitability of the Ground segment. Express hit 'a bump in the road' this past spring on the road to getting towards that stock price - but get there it well, REGARDLESS of what that means to you as an Express employee.

    I have a sell order with a target VERY close to the figure the OP stated ($114), so on that part, the manager in question either knows what the hell they are doing (independently of corporate talking points - NOT likely), OR, that a corporate wide talking point was made in this 'presentation' (MOST LIKELY). This should tell you something folks... Naw... that RIa is full of crap, what we're experiencing is merely coincidence....

    FedEx is in NO way looking to do the OPPOSITE of a 'hostile takeover' either, that is sell off profitable portions of the company to outside investors. Of all the opcos, Ground is the only one really raking in the cash, the 'selling price' of the other opcos (should one have to figure out one), would come to peanuts. They would sell for less than their book value.

    A company's stock is more a reflection of its ability to create RELIABLE profits year after year, NOT the liquidation value of all its assets. Most well run companies have a valuation (market value of all outstanding stock) that is GREATER than the liquidation value of its assets. A well run company, through its profitable operations has created a financial synergy, that is the value of the company as a whole is GREATER that the sum of the liquidation price of its assets.

    Right now, Express (taken as a separate opco), has a liquidation value GREATER than its value should the company be listed with its separate stock (this would make it ripe for 'hostile takeover'). If Express had its own separate stock (there is a VERY GOOD REASON why it doesn't - Fred and cronies want to keep their jobs, it would be unlikely if FedEx had separate stocks for each opco), then IT WOULD be ripe for hostile takeover.

    In this case, an outside equity firm would place a 'fair market' proposal to acquire a majority of the outstanding stock. (Let's use a figure of $15 BILLION just to give something to get a handle on). Then, if the company was taken over, the outside investors would have ALREADY done an accounting of the companies assets - then made a plan to sell off those assets for a price that is GREATER than the price they acquired the company for. So in this hypothetical example, the investors would've paid $15 BILLION and figured they'd cold get $20 BILLION in total cash from selling off company assets (then the company is closed down, the assets distributed to stock holders). They'd make a return on investment of 33% within a very short period of time, and the investors of the equity firm would be happy.

    In a large majority of 'hostile takeovers', the company's management has failed to realize that the value of one of their assets (more often than not, owned real estate), has APPRECIATED in value while its profitability has dropped over the same time. The company's book value becomes markedly greater than its market value - and the vultures begin to circle.

    What our OP has run into, is what I've been stating is going on for quite some time - that you as an Express employee ARE NOT VALUED by your employer. You are seen as a liability, a troublemaker, a potential 'cancer' that poses risks to improving the value of the company's stock. If you don't like it - hit the door. I'm just rather surprised that our OP seems to just be learning this (I"m going to play nice...), it took hearing it from the 'horse's mouth' for it to finally sink in.

    FedEx considers its wage rate for its Express employees to be HIGH. They want to pay Ground wages (what they consider to be 'fair market wages'). They are slowly, but surely moving towards that (Express compensation is slowly diminishing, Ground compensation is slowly increasing to meet 'real' market demand for a somewhat stable workforce). If as an Express employee, you don't like the way you are being compensated, hit the door - it is what your employer WANTS. You can be replaced with someone who will be a little more grateful (and desperate, pliable and controllable), to ease the way for Express to get those double digit profits it wants (to get the stock price up where it wants).

    I said it when I posted a few months ago about my purchasing FedEx stock, I was placing a bet on FRED - on his ability to get what he wants, since it was clear that the wage employees weren't going to put a stop to it. Well, it is now almost 9 months later, and Fred is implementing his plans and the wage employees are getting 'uncomfortable'. I don't know why, this SOB that posts as R1a has been telling you for years what is coming. The only variance is in the chosen speed Fred has utilized to unroll his plan. He is brilliant when it comes to deception, so that is why I placed my 'bet' on Fred last autumn and purchased stock.

    To make it clear, I would love NOTHING MORE, than to have to sell that stock back at the same price I purchased it - IF, IF, IF, you guys would get off your asses, organize yourselves and get paid and treated as you should be. But since that won't happen - I'd might as well make some money myself - I got a number of years I was with Express in which I was severely under compensated - I'M going to make up for that.
     
  12. Ricochet1a

    Ricochet1a New Member

    The Chinese are into manufacturing, resource extraction (oil, minerals - to keep their economy running), and then real estate outside of China. They've got BILLIONS in US dollars they have to do something with, so they purchase assets outside China with those BILLIONS, looking to get financial returns higher than if they placed those funds with Western banks. They've taken to capitalism quite nicely.

    Service industries (FedEx is a service industry), isn't something that they'd be interested in.

    FedEx (at least Express) has financials which mirror airlines VERY closely. Traditionally, airlines are MONEY PITS - they are unprofitable. Costs of equipment, fuel and labor are too high while there is too much pressure on revenues. This is what killed Express back in the mid-90s, UPS got into the overnight market in a big way, so the days of Express charging what it wanted went away - and so did its profits. Then the gross mismanagement (operating as if Express was still in a market monopoly), slowly strangled FedEx and the wage employees' compensation was seen as a method of keeping the 'boat afloat'. Fast forward 15 years...

    This is why most airlines have some form of government subsidy (in most countries) to keep them in operation. Even in the US - the costs of air traffic control and airport operation are greatly subsidized by federal and even some state governments. If the airlines truly had to 'pay their own way', they'd have to charge so much that the industry would collapse and utilization of other methods (over the road primarily - potentially rail if the government REALLY got out).

    No, FedEx is looking to make its investors happy (the current management is on borrowed time when it comes to that though, a very large percentage of FedEx is owned by institutional investors, and Fred has lost his 'magic' in the past decade). I think upper management all want to ensure they still have a job, and to build the value of their own portfolio should they need to get out in a hurry. Right now, the upper execs aren't 'dumping' stock, they are exercising stock options - they are looking to increase the value of that stock so they can turn around and sell those shares (when able) at a large difference in price between what they paid and what they anticipate to receive.
     
  13. Route 66

    Route 66 Flacid Member

    I think it's DHR - as in "deck the harrs with boughs of horry, fa ra ra ra-raaa ra ra ra raa... tis the season to be jorry, fa ra ra ra ra-ra ra ra raaaaa"
     
  14. vantexan

    vantexan Well-Known Member

    Geez man, only you would interpret it that way. I'm well aware, and have been for years, of what the company is doing. My personal goals are different than most and have put up with alot to get where I want to be. If your goal is to live in a nice home in a nice neighborhood with a nice car or two and get the kids through school and have a few toys more power to you. But try not to assume you know the inner workings and motivations that drive me because you don't. As to the conflict we've had in the past it was almost entirely driven by personal attacks by you on my character. You can editorialize all you want without getting personal, can't you?
     
  15. DontThrowPackages

    DontThrowPackages Well-Known Member

    When the so called scholars are telling you the earth is flat but you just returned from circumnavigating the earth, they don't want you questioning them with logic. I expect our meeting to follow as well. And I see she pulled the " See me after the meeting" line. LOL
     
  16. thedownhillEXPRESS

    thedownhillEXPRESS Well-Known Member

    FedEx, where our employees are a cancer!
    Sounds like a new Super Bowl ad!!
     
  17. DontThrowPackages

    DontThrowPackages Well-Known Member

    I could only imagine maybe a syndicate from China. But really, no one's trying to take over the company. Red herrings anyone? Get 'em while they're hot. :blahblah::blahblah::blahblah:
     
  18. bbsam

    bbsam Moderator Staff Member

    Imagine the political clout they would have. Think Fred's connected?
     
  19. Nope...just a fat wallet and gut.!
     
  20. MrFedEx

    MrFedEx Engorged Member

    You nailed it in the first line. This sounds exactly like an "explanation" cooked-up by the chefs of BS in Memphis. They are hoping the gullible will fall for it and come back into the fold.