stock price??

[psstdrvr]

If the rest of the country is managed like the ELI district, Its obvious why the stock price is what it is. There is way too much dead wood in upper management. We have a center manager who doesn't give a crap and openly boasts he has 14 months left till retirement. His response to any problems is
" I made my money and I don't care!"

 

[montecarlo12]

Ups 79.
dont take it out on me my friend. There is nothing wrong with trying to put a positive spin on a negative. How about posting the dividends for both Fedex and UPS since UPS went public in (99). Im not sure if you will be more surprised or upset in your findings.

Ups 79
Do you think UPS felt an obligation to pay out decent dividends to share holders because of the (flat) at best share value compared to Fedex?

Im going to stick my neck out today and say that not only will Fedex meet there earnings guidance, but will beat expectations. (again)

 

[over9five]

Obviously, this is the damn drivers fault.

 

[psstdrvr]

Hey over9five are you from ELI and retiring in 14 months? If not,we can use another inspiritational manager soon! Funny thing is the entire primary preload management team was forced to resign or were fired over the last month in our melville bldg for falsifying numbers. I bet this goes on all over the company at all levels. Maybe the big boys will take their heads out of the sand and see how UPS really operates.

 

[michael]

I believe the reason for the big drop in the stock price today came from the comments made about the next quarters expectations.

The little bit that I know about how things operate on Wall St. says that most things are based on FUTURE earnings projections. The comments that were made today about what will happen with the next quarters numbers sent the stock tumbling.

Think about it, why should anyone hold onto a stock that will not do as well as projected. Thats why the stock is sold in big numbers, driving the price down. Just MHO...

 

[Thebrowntruth]

Hey over9five are you from ELI and retiring in 14 months? If not,we can use another inspiritational manager soon! Funny thing is the entire primary preload management team was forced to resign or were fired over the last month in our melville bldg for falsifying numbers. I bet this goes on all over the company at all levels. Maybe the big boys will take their heads out of the sand and see how UPS really operates.

You have got to be kidding? How many got the axe? Let me guess, nooooo division managers were involved in this or suffered!!!!!!!!
As far as false numbers, what a joke!!!! how many p/t supervisors are loading across the country? How many have timecards put in for doing union work MAAAAAAAYBBBBBBE 10% .......how many on road sups shuttle packages (with no record), how many loads do they have to cover every day...Oh I hope you arent accurate in your story. It would be a shame that someone took the fall for what is being forced on UPS management (lower levels) EVERYWHERE

 

[traveler]

And perhaps another reason -

"United Parcel Service class B (UPS) (71.80 [FONT=arial,helvetica]-8.20 Merrill Lynch lowered its rating on UNITED PARCEL SERVICE INC. to "sell" from "buy," citing low double digit earnings in the near term. The downgrade follows the company's weaker-than-expected Q2 earnings and lower Q3 outlook."

Low double digit earnings, how sad a company.

 

[moreluck]

The number of shares traded today was the highest since UPS went public. Guess what, they weren't all sells.....somebody was buying the stuff!

 

[Capt. Ramius]

Yeah... somebody was buying. More than likely it was the traders at the Finance or Treasury group at corporate buying back the shares to prop up the price the best they could.

I know a good deal of public companies use the buy-back route...but as a shareowner, I'd rather have management look for projects/opportunites that produce returns in excess of what my firm (in this case UPS) is doing--which if you look at average returns...shouldn't be too hard. Instead, authorizing billions of $$ for buy-back, IMHO, is not a good use of the firm's resources. They should be investing in assets that increases shareowner wealth.

In general, the whole "we're investing in ourselves" (read "to prop up EPS each quarter") is a fool's game.... what's next? shell corporations that'll come crumbling down like a certain energy company in Texas? Hmmm....

 

[wkmac]

Obviously, this is the damn drivers fault.

You can bet over the next couple of weeks as things shake out that the internal spin will come down to something like that!



Several reports I read listed a number of factors but the biggest 2 IMO were fuel which added $25mil off the bottomline and operating margins slipping in the non-US package operations, specifically international and supply chain. Ironically, US domestic package operations saw volume growth and positive growth in operating margins. One concern I did see was for so long the air product growth outpaced the ground package growth but this now has seemed to reversed. In our efforts to enhance transportation lane performance, which IMO we had to do, did we begin a cannabilizing of our air segment?

Now here's a question for the experts on this board and I mean our package car drivers. So far this year, where have you personally seen the biggest growth in ground volume, Residential or Commercial? There may be much to learn from the answers we get from the folks who can tell us a lot IMO!

Monte,
FedEx does have some advantages in it's ground segment with it's contractor workforce that the pension and insurance cost mentioned by Scott Davis at UPS isn't a factor as much for FedEx. However, what you have to be concerned with is the growing legal battles concerning your contractors and FedEx and although it's not a done deal either way, the early skimishes have not gone FedEx's way. If this holds true through the legal process, the conversion costs to FedEx of making these contractors employees and reimbershment costs paid out by FedEx will be huge and it won't just effect a Q or 2 either. FedEx no doubt has a lot of positives, I'll grant you that but my concern longer term as a FedEx shareholder is this looming potential and it's not over the horizon, it's almost here when you research much of the legal proceedings and processes. You got room to crow but I'd not crow to much my friend. FedEx may not completely lose this war but they won't out and out win it either!

 

[traveler]

Firm - Action - From/To
BB&T Capital Mkts Downgrade Buy to Hold 26-Jul-06
Robert W. Baird Downgrade Outperform to Neutral 26-Jul-06

Still

Top-Ranked Analysts
ReportsFisher, William Raymond James

Paterson, Rick UBS

Langenfeld, Jon Robert W. Baird & Co., Inc.

Reports by AnalystLarkin, John Stifel Nicolaus & Company, Inc.

 

[moreluck]

did ups grow? ...................YES
did ups make a profit?...................YES

The reaction of the market is as if the company folded and went under. I think a little time has to pass for things to settle down and folks will realize what a great buying opportunity this stock is at this price.

 

[wkmac]

did ups grow? ...................YES
did ups make a profit?...................YES

The reaction of the market is as if the company folded and went under. I think a little time has to pass for things to settle down and folks will realize what a great buying opportunity this stock is at this price.

Very True Moreluck but they missed expectations based on what they had told the Street. They also revised 3Q expectations and warned of evidence of slower economic growth. Many headlines stated UPS as bellweather to larger economy and some reports pointed to UPS as to reason for early troubles on the market yesterday.

The street may have paniced but it did so as a result that UPS didn't make it because they weren't fully prepared for various events during 2Q so the obvious question would be, "what lay ahead that they've overlooked, haven't anticipated or done their homework on?" It's obvious they didn't do it during 2Q just on the fuel issue alone if you read the press reports of Scott Davis' statements.

 

[moreluck]

wkmac......these figures aren't accurate, but the gist of it is....

GM supposedly beat the street by over $2.00......while some might think that's great, It makes me question whether GM even knows their company and what it's doing.

UPS hit in the range that was predicted......much more accurately than GM. To me, UPS looks better in that situation.

I, however, approve of the GM guy's comment when asked about the next quarter....it was basically a "no comment".

 

[rod]

how can they blame fuel prices? Those increases were all passed on to the customers in the form of surcharges weren't they?

 

[moreluck]

Those fuel increases apparently were not passed on to the customer in a 'timely' manner and they are playing catch-up now. According to Scott Davis , "We'll catch up eventually"

 

[over9five]

I guess Fedex doesn't use fuel???

 

[beentheredonethat]

how can they blame fuel prices? Those increases were all passed on to the customers in the form of surcharges weren't they?

UPS for a while capped the fuel surcharges. FDX didn't so as the fuel got even more expensive, we spent extra for the fuel but the fuel surcharge didn't keep up. ALso, many customers have contracts were the fuel surcharge is greatly discounted.

 

[p1000]

Today in our building they had I. E., B. D., H. R. and what any other useless MGNT. to ride with drivers to try to get more bussiness. Then at the end of the day they OJS us. They wunder why our stock sucks. What a waste of money.

 

[rushfan]

HEY MIKE:
YOU WONDER WHY OUR STOCK IS TANKING?
THREE LETTERS-PAS.

What do I know, i'm just a driver.