Sell UPS and develop a diversified portfolio

Discussion in 'UPS Discussions' started by Dfigtree, Nov 7, 2007.

  1. Dfigtree

    Dfigtree New Member

    After Hours: 72.39 0.71 (0.99%) as of 4:26PM ET on 11/07/07Last Trade:71.68Trade Time:4:04PM ETChange: 2.55 (3.44%)for those bigshots with stock options who have mishandled UPS profits
    and mistreated the employees (a/k/a/ partners/ IBT members) for the last few years and therefore negatively effected their own net worth
    and well being as well as everybody else's ...

    Grant date Grant Price

    3/2001 56.90
    4/2002 60.22
    5/2003 62.49
    5/2004 70.70
    5/2005 72.02
    5/2006 80.88

    This means that Rick Moranis for all his arrogance and those like him have cost shareholders and themselves a lot of money over the last
    three years.

    Diversify away from Moranis and company. Sell UPS. The good ole days are gone. Develop a diversified portfolio.
  2. freeloader

    freeloader geek

    I don't think there's any mishandling of profits going on. UPS reinvests in itself heavily and management makes it known their financial decisions are long term. However, the stock has been stale every since the IPO. Management won't exercise their options (to buy UPS stock at the price 5 yrs ago) because the price is the same as it was 5 years ago. Net income is higher than ever and at a steady 10-12% of revenue so the wealth is still being shared.

    Before the IPO is when management really made out on options because the stock price was manipulated. Then the IPO happened and everyone's stock doubled, and flat-lined from then on out.

    I only wish the employee thrift plan was still around. I was making 10-20% a year on my contributions, then UPS got rid of the thrift plan and converted it all into stock. Stock that has been stale since the IPO.

    Why UPS stock has been stale I haven't a clue.
  3. edd_tv

    edd_tv Cardboard picker upper

    honey, i shrunk my portfolio..
  4. satellitedriver

    satellitedriver Moderator Staff Member

    The main reason that I have read from stock rating guru's, is the employee turn over rate.
    While all the financial fundamentals are solid, they seem to focus on the turnover rate as a sign of an unstable infrastructure.
    Many of the pundits also said Google was overvalued at $190, so that shows what ex-spurt's(old joke) opinion's are worth.
    I can see no sound reason that UPS stock isn't sitting at $125 a share today.
    But, the reality is, it has been a flatline since the IPO and I do not see any improvement for it in the future.
  5. UPS Lifer

    UPS Lifer Well-Known Member

    Not going to tell anyone to hold onto their stock ...but get the reason right as to why it is dropping. Real simple....Oil - Oil - and more Oil. Oil is hovering at the 100 dollar a barrel mark. An analyist said today that it might take oil going up to $125 a barrel before we start curtailing our driving. This is hard to imagine!

    When oil goes up, the first thing that goes down is the transporation sector. Right now - the whole market is in a tizzy with a lot of negative indicators. Real estate forclosures - Interest rates - oil - what's next? Oh yeah the political scene....It is going to be a roller coaster year!
  6. freeloader

    freeloader geek

    Yeah oil price makes the most sense since UPS is quite dependent on it. Transportation stocks generally aren't big movers either although FDX is way ahead of UPS as far as share price goes. My guess is FDX generates almost the same annual revenue as UPS, but only has about 50-75% of the volume. So they are generating more revenue per piece than UPS.

    Tech stocks are fun to watch. Google was sitting at $500 a share only a month or so ago and now it's over $700 a share.
  7. scratch

    scratch Least Best Moderator Staff Member

    I have always got the impression that Fedex does well even when oil prices go up. So that would be against the argument that oil prices effect both companies the same way. I just think that Wall Street likes Fedex better because of our much higher labor cost. I haven't bought any UPS Stock since the IPO. My Center Manager at that time took early retirement and stated that it would never be the same since then. He was right.
  8. nhguy

    nhguy New Member

    You need to realize that the reason that FEDEX stock is priced much higher is because they only have 330 million shares in the market. UPS has over a billion shares.

    The Fedex PE ratio is about 15 times earnings. The UPS PE ratio is around 19-20 times earnings. Fedex profit margins are higher because their costs are less. All those independant owner operators are a hugh savings and that is why Fedex fights in court constantly to not make these people non employees. Their hourly salaries for their employee drivers is also below UPS.

    As you can see, there are a lot of reasons why FEDEX stock price is higher than UPS.The fundamentals for investors make Fedex a more attractive buy.

    Remember the big fish always eats the little ones!
  9. rod

    rod retired and happy

    I was under the assumption that oil prices shouldn' t really affect UPS stock prices because as with all transportation companies- they pass the extra costs onto the customer in the form of surcharges. :confused:1 what am I missing (even though I've sold all my UPS stock and got into other markets that a person can make a buck on)
  10. UPS Lifer

    UPS Lifer Well-Known Member

    You know how fickle the public is...In the mind of the investor, if it takes fuel to run your company then your company is at risk. Better to stay away and invest in something that you feel there is less risk. Cost is cost! When your supply costs rise, there are too many question marks or variables that make people keep their money in their pockets.
  11. over9five

    over9five Senior Member Staff Member

    I have heard Wall St does not like us because we give too much back in dividends. (They would rather it reinvested in the company?)

    Anyone know what Fedex gives out in dividends compared to us?
  12. moreluck

    moreluck golden ticket member

    In the past it's been like $.08 to a dime.
  13. exit63

    exit63 New Member

    I heard Rick would like to play the lead role in the remake of 'Dave.' I can hear him practicing his lines now...'Yes Dave'...'You;re right Dave.'

    AL though I have built a diversified portfolio since 1999, I still hold a good chunk of UPS for the following reasons in no particular order:

    UPS doesn't lie on quarterly reports or project good things when the aren't FEDEX does. That's called integrity.

    UPS has a decent dividend.

    UPS has operations excellence like no one else, and operators like no one else (yes, blatent suck up to the drivers, loaders, and sorters on this board.

    UPS manages their debt very well, even if the can't hold the AAA.

    I worked there for 34 years.

    UPS is still the number 1 transportation company in the world in most ways.

    Warren Buffet likes us.
  14. UPS Lifer

    UPS Lifer Well-Known Member

    The last FDX dividend was .10 and the yield is .38% UPS is 1.68 and the yield is 2.34%

    Hostorically - investors like a company that gives a dividend. We all want to see some money come back to us for our investment. Now that the boomers are going to be retiring, they will want income or cashflow from their investments. I know that is the most important part for me!

    I think what Wall St does not like is when companies put out dividends before reinvesting into the infrastructure of the company.
  15. moreluck

    moreluck golden ticket member

    The Board declared a regular quarterly dividend of $0.42 per share on all outstanding Class A and Class B shares. The dividend is payable Jan. 3, 2008, to shareholders of record on Nov. 19, 2007. UPS has either increased or maintained its dividend every year for more than three decades.