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Hilary Kramer's Daily Picks & Pans

<TT>Go Brown to Go Global

(http://finance.aol.com/usw/quotes/charts?dr=999&sym=ups&exch=USA&state=default) I am constantly asked about _UPS_
(http://finance.aol.com/usw/quotes/quotesandnews?sym=ups&exch=USA) . I think it's because you see UPS everywhere
especially the men and women in brown and so we wonder how much money all
those deliveries must be bringing in each day. Or maybe it's that we are all
buying more on-line than ever before and those packages are delivered by UPS.

All of those observations point to a growing enterprise and a profitable
company. In 2005, UPS made $6.1 billion in operating profit and delivered 3.75
billion packages.

But the real reason I'm emphatically recommending UPS is that the company is
a bulls-eye way to play China. You don't have to buy a Chinese stock to
benefit from the growing Chinese market and UPS is emerging as a leader in
exporting to China. The company even has an "intra-China express service" that
serves cities within China. UPS was smart to develop an international trade
division that includes freight forwarding, customs brokerage, and consulting
services. But the company was even smarter in directing these services into the
exploding Chinese market.

UPS must remain focused on growing internationally. Domestically, it has to
continue dominating ground traffic as well as fighting FedEx for a share of
the overnight market. With domestic profits providing a base and international
profits driving growth, we're going to see UPS's profits continue to expand
and benefit its shareholders.

Remember, just as you and I see UPS trucks everywhere and experience their
quality service, UPS is replicating this model all over the world, expanding
those truck fleets seemingly exponentially. And for those of you that like to
invest in green companies, UPS just announced that it has placed an order for
50 new-generation hybrid electric delivery trucks and will also acquire
4,100 low-emission conventional vehicles this year.

Type of stock: Even if fuel prices start to rise again, UPS is still well
positioned to achieve increasing growth because consumers shop online, and
because UPS is entrenched in the Asian business and consumer market. Not much
risk here -- and the upside is a stock that will climb higher each year whileyou
enjoy a 2 percent annual dividend.
Price target:
By the end of 2007, I think UPS should be a $100 stock. Yes, that's $25
higher than today.



MORELUCK-------thanks for sharing the excellent article about UPS----first time that I have seen an honest overview of UPS for 2005---$6.1 Billion in PROFIT!!! I still can't beleive that Wall Street is so concerned about UPS Ground Volume eroding------it's the Int' Revenues and Int'l aquisitions that are driving out huge profits---not the fact that we are letting RPS(Fed Ex) have some of the ground volume, while we focus on Supply Chain Business---a $300 Billion industry....can you say "Ching --Ching"- that's Chinese for---Lot's of Money----because that is where UPS future profit will be coming from!!

If UPS generates $50 billion in revenue in 2006 and NETS $10 BillionPROFIT---do you think that Wall Street will take a different look at UPS---maybe our stock will go up $1 or $2??