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Redesigned mip
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<blockquote data-quote="pretzel_man" data-source="post: 51891"><p>Tieguy: </p><p> </p><p>Watch the PE ratio? </p><p> </p><p>When we were private, we ran a 12 to 14 PE ratio. It was much more tied to past earnings rather than future speculation. Therefore, good earnings meant good stock growth. </p><p> </p><p>As a public company, we are currently running a PE ratio of about 24 1/2. Just before we dropped, we were running about 29. </p><p> </p><p>My point is that the public market values the stock more on future estimates than past performance. This is different than when we were private. </p><p> </p><p>I think we'll settle at a ratio of about 26. Just about double of when we were private. That's been pretty consistent since the day of the IPO. </p><p> </p><p>So, just like when we were private, earnings growth will drive stock growth. If we take our eye off that ball, Wall Street may value us the same as we did before the IPO, and that's almost 1/2 of today. </p><p> </p><p>Therefore, as a long time UPSer, I'm okay with the MIP change if it means a focused management attention and more stock growth. </p><p> </p><p>P-Man</p></blockquote><p></p>
[QUOTE="pretzel_man, post: 51891"] Tieguy: Watch the PE ratio? When we were private, we ran a 12 to 14 PE ratio. It was much more tied to past earnings rather than future speculation. Therefore, good earnings meant good stock growth. As a public company, we are currently running a PE ratio of about 24 1/2. Just before we dropped, we were running about 29. My point is that the public market values the stock more on future estimates than past performance. This is different than when we were private. I think we'll settle at a ratio of about 26. Just about double of when we were private. That's been pretty consistent since the day of the IPO. So, just like when we were private, earnings growth will drive stock growth. If we take our eye off that ball, Wall Street may value us the same as we did before the IPO, and that's almost 1/2 of today. Therefore, as a long time UPSer, I'm okay with the MIP change if it means a focused management attention and more stock growth. P-Man [/QUOTE]
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