Do you think UPS will go private again? If so, how long do you think it will take them to go back to being private?
It sure would be nice to get the returns they UPS employees used to get on thier investments in the company back before they went public!
Don't know if they can do that. If going private, you mean take UPS off of the New York Stock Exchange, then what about all the people who bought UPS stock from Wall Street??
Don't know if they can do that. If going private, you mean take UPS off of the New York Stock Exchange, then what about all the people who bought UPS stock from Wall Street??
" Why not? Its the latest trend since Sarbanes-Oxley passed."Why not? Its the latest trend since Sarbanes-Oxley passed. There has been several in the past couple weeks (Texas Utilities @ ~$40B)
With ~$80B market cap for UPS and roughly half in private hands (Class B) that would equate to ~$40B plus 25% premium being ~$50B needed to due the buyout. Possible but no likely.
" Why not? Its the latest trend since Sarbanes-Oxley passed."
Just Lurking, can you explain the SOX connection to this thread?
Sarbanes-Oxley Provisions
The Sarbanes-Oxley Act's major provisions include the following:
- Creation of the Public Company Accounting Oversight Board (PCAOB)
- A requirement that public companies evaluate and disclose the effectiveness of their internal controls as they relate to financial reporting, and that independent auditors for such companies "attest" (i.e., agree, or qualify) to such disclosure
- Certification of financial reports by chief executive officers and chief financial officers
- Auditor independence, including outright bans on certain types of work for audit clients and pre-certification by the company's Audit Committee of all other non-audit work
- A requirement that companies listed on stock exchanges have fully independent audit committees that oversee the relationship between the company and its auditor
- Ban on most personal loans to any executive officer or director
- Accelerated reporting of insider trading
- Prohibition on insider trades during pension fund blackout periods
- Additional disclosure
- Enhanced criminal and civil penalties for violations of securities law
- Significantly longer maximum jail sentences and larger fines for corporate executives who knowingly and willfully misstate financial statements, although maximum sentences are largely irrelevant because judges generally follow the Federal Sentencing Guidelines in setting actual sentences
- Employee protections allowing those corporate fraud whistleblowers who file complaints with OSHA within 90 days to win reinstatement, back pay and benefits, compensatory damages, abatement orders, and reasonable attorney fees and costs.
Don't know if they can do that. If going private, you mean take UPS off of the New York Stock Exchange, then what about all the people who bought UPS stock from Wall Street??
if you go to UPS Discussions......on the top of page, left side about a couple inches down it says, "Threads in Forum".....just above that is a rectangular box with a small blue arrow saying "start a new thread". That's how to do it.
You have to give the new thread a title too.
UPS soars past record IPO November 10, 1999: 4:30 p.m. ET" The big reason for going public was to establish our stock as currency." So, what's the little reason?
Before you can reasonably guess as to whether UPS will go private, you must know why UPS went public. I have never seen a UPS endorsed statement as to why UPS went public. Those who know, aren't talking. And, those who are talking, don't know. Why keep it secret?
UPS soars past record IPO November 10, 1999: 4:30 p.m. ET
Stock opens at 30 percent premium to IPO that raised record $5.5B
By Staff Writer Chris IsidoreNEW YORK (CNNfn) - United Parcel Service burst out the gate rapidly Wednesday, as the scramble for the stock by investors large and small sent it up 30 percent at the opening of trade. The stock closed its first day with a 35 percent gain.
The Atlanta parcel-delivery giant priced the IPO at $50 a share late Tuesday, above the recently raised $47 to $49 range set only Friday. The first trade, at 10:03 a.m. on the New York Stock Exchange, was 65. The stock continued to climb, reaching a high of 70-5/16 at 11:35 a.m. before sliding to 67-1/4 at the 4 p.m. close.
That is still up 17-1/4 or 35 percent from the IPO price and 164 percent from the price of the stock Tuesday when it was privately traded.
The company combines a strong balance sheet, among the best profit margins in the trucking industry and a lion's share of the growing business of delivery goods purchased by consumers online, making it an attractive Internet play as well.
"I think there's an excitement that surrounds the whole Internet component, even though it's still not the bulk of what they do," said Ben Holmes, founder of ipoPros.com, an online research firm. "But it also becomes an institutional darling almost immediately." Institutional investors oversubscribed the offering 10 times over, and with individual investor demand that climbed to 14 to 15 times oversubscription, according to a person familiar with the offering. Some 80 million shares traded Thursday, almost three-quarters of the volume of shares issued Wednesday.
Lots of profits, but high price
The company posted net income of $1.95 billion in the 12 months ending Sept. 30, before a $1.4 billion charge for possible payment in a tax dispute. That gives it a ratio of price to trailing earnings of 28 at the IPO price, but a ratio of almost 38 at the closing price. It had revenue of $26.3 billion for the 12-month period, far exceeding any other transportation company.
That compares to a P/E ratio of 20 for its key competitor, FDX Corp. (FDX), owner of Federal Express and rival ground parcel carrier RPS. FDX's stock was at 43-1/4, down 3/4, at the 4 p.m. close.
UPS had more than $2.6 billion in cash or equivalents on hand at the end of the last quarter and the best debt rating of any corporation, so it did not need the money from the IPO. Its officials said it wanted to be able make acquisitions using stock rather than cash and create a market for shares held by employees and retirees.
The company said has generally grown through expansion of operations, rather than acquisitions, but it has used purchases to fill in holes in its global network, such as the purchase earlier this year of Challenge Air, a Miami air cargo carrier with authority that UPS lacked to fly to many South American countries.
At the time of the IPO plans were announced, James Kelly, UPS' chairman and chief executive, mentioned the growing threat from acquisition-hungry European postal authorities that have privatized recently.
"It really hasn't been about the money. It's been about positioning our company for the future and giving us the currency for acquisitions," Kelly said in an interview on CNNfn Wednesday after the close of trading.
Company comments make some people think that UPS would focus on other overseas purchases with its stock. Others suggested that technology companies might be on its plate.
"The valuations for technology companies are very high. Why would you pay cash for that, why not pay with another inflated stock?" said Ullas Naik, senior vice president, research and an IPO expert at FAC Equities.
Because it would be bad PR to admit that the IPO was mainly a way to quickly enrich the major stockholders. If the Board that set the stock price had one day declared a value of $70, regulatory agencies would have been probing every opening. The IPO allowed the tail to wag the dog, and you can't prosecute the free market." The big reason for going public was to establish our stock as currency." So, what's the little reason?
Before you can reasonably guess as to whether UPS will go private, you must know why UPS went public. I have never seen a UPS endorsed statement as to why UPS went public. Those who know, aren't talking. And, those who are talking, don't know. Why keep it secret?