Here is a copy of a recent analyst report on UPS. Looks good to me! United Parcel Service (UPS) > UPS gaining some momentum; Expect UPS to outpace guidance; Teamster strike > unlikely; sheet > > International markets picking up; One of the cleanest balance sheets in > addition to an off-balance > > asset; Expect stock to be included in S&P 500 > > > Recent comments from the company in terms of the economy are that it > appears the U.S. is bumping along a bottom; however, we feel the U.S. is > doing better than that. Asia has picked up and Europe remains strong for the > company (international represents about 30% of business for UPS). Management > felt no indications of pricing becoming irrational in the ground market. > Management's guidance for 2Q:02 EPS remains in the $0.50 - 0.55 range; > however, we are keeping our $0.56 estimate. We recognize that our 2Q:02 > forecast is ahead of the company's guidance, but we suspect that UPS will > outpace its guidance by about at least a penny or so. > > > > Management and the Teamsters have reviewed all economic based issues, and > at this point they are in the stages of discussing non-economic issues > (NOTE: UPS is the largest employer of Teamsters). While the stock has > already been strong in the last two weeks as a result of progress with the > Teamsters, we believe any positive developments that unfold within the next > 2 - 3 weeks could help to push the stock up even further in our opinion. > > > > The company is among the only eight AAA-rated companies among the > industrials. For 2002, if our forecasts are correct, we believe the company > has the means to generate sizable amounts of cash and achieve a net debt to > net debt + equity ratio of 9% and a debt ratio of 20%. As the company > continues to generate sizable amounts of free cash flow going forward, we > believe the company's net debt to net debt + equity could get as low as 2%, > with a debt ratio of 17% by 2003. This is not even accounting for the IRS > settlement. The timing and amount collectable of UPS's $1.8 billion IRS tax > settlement remains unresolved. We are aware that it is concurrently being > handled in court while ongoing settlement discussions are also occurring > with the IRS. In our opinion, a settlement should occur soon. > > > > With regard to the UPS and the S&P 500, increasing trading volume and > liquidity remain some of the final barriers towards inclusion into the S&P > 500 in our opinion. At the current level of average daily trading volume for > the past month of 1.7 million shares, we calculate that the implied number > of days to fill all buy orders from index funds for the stock would be 29 - > 41 days, following an adjustment for the 30 million share shelf > registration. We would not be surprised to see S&P 500 inclusion happen this > year.