Why is FedEx stock up almost $7 a share today?
Big announcement coming in Jan
- Thread starter snowcat66
- Start date
It's called Warren Buffett. At current stock price FDX has a market cap of about 42 billion. Buffett and Bershire has 142 billion in cash on hand and have publicly stated that it's on the prowl for somebody to buy. This was clearly at least in part a attempt to ward off a hostile takeover bid.
Operational needs
Virescit Vulnere Virtus
Buy outs would be fantastic! I’m hoping and praying.
As some of you guys at Express have said in the past, Express will become an OPCO where the vast majority of employees are part time. Now if you like working full time for part time pay and zero benefits and truly love working Sundays including Easter Sunday then all you need to do is to walk down the road to Fedex Ground.
If offered a buyout I would suggest that you do your own Steve Miller.....Go on, take the money and run.....Run down to Ground for a daily work experience like no other.
Maui
Well-Known Member
Buyouts and layoffs are doubtful. Like I speculated many pages ago, hiring will slow and any reduction in staff would probably be accomplished through attrition. At the local level no one really knows what the impact will be to volume. Some markets will feel it more than others. When FedEx stopped Amazon there were no layoffs or buyouts for couriers. I would expect the same with this.
Not all resi volume can/will be delivered by ground. For example a 2 day from MIA to SEA will have to stay in the Express network to make service. I don't think very many people even know what the next market(s) will be. I'd expect areas where the ramp is close to a FXG location would be among the next.
This also appears to have little to no impact on the pickup side.
Maui
Well-Known Member
No.
MAKAVELI
Well-Known Member
Not according to the chart.
Rural areas will make or break this new fine mess. If Ground has to do rural express pickups then they'll all have to get back to their terminals hours earlier than the 8 PM many are getting back now.
MAKAVELI
Well-Known Member
Ground will not be making Express pickups. They will be used as a last mile delivery service for express just like SmartPost.
Maui
Well-Known Member
What chart?
I see it in your post. From that chart what I said stands. A 2 day commit from MIA would not make it SEA in time during the week. Perhaps for a Friday pickup, but not sure it's worth it.
SO will be in those areas it can make commit too. Friday night may have some increased movement, especially since FXG is 7 day.
MAKAVELI
Well-Known Member
See above.
Operational needs
Virescit Vulnere Virtus
.
MAKAVELI
Well-Known Member
Last Mile means exactly that last mile. there's no way for them to transport international economy either under your theory.
MAKAVELI
Well-Known Member
To add to this the only thing they're concerned about is time commitment. That's why they're not giving ground premium services.
It will be fine
Well-Known Member
Yet.
Maui
Well-Known Member
IE can't work the same. That would have to fly from the origin into a hub.
I'm not saying it would never happen because FXE could move the package to the destination market; however, that is not part of this communication. As it stands cross-country 2D would not move into the FXG network for delivery. There is too much risk of failure.
I also have no idea which local FXG network(s) can handle the volume and make the commit.
MAKAVELI
Well-Known Member
I don't think you really understand what last-mile means. This will be done in phases so it's not going to happen all at once.
Maui
Well-Known Member
Dare to dream. It SHOULD happen. FedEx will make more money and beginning in June 2022 the capital expenses are supposed to drop dramatically. There will be record profit.
If some of that doesn't go to employees, then all that can should leave.
