C'mon Wall St. Give UPS some love

[klein]

Aren't UPS employees in far off lands paid in their local currency, from revenue earned in their local area?

Isn't the price of OIL denominated in US dollars world wide? If so then shouldn't everyone's fuel bills go up as well? Not just us.

You don't get it.
What do you think the quarterly results are, just from USA ? Or worldwide?
Ofcourse, worldwide.
So, everything has to be converted into US dollars.

Now, secondly.
As an example: 1 Canadian Dollar becomes $2.00 US.
At $100 a barrel of oil.
We will pay $50 cdn for it, you pay $100.
So, no, it's only the US that has to pay more for oil, if the US currency devaluates.
Euro, and other currencies can buy the US Oil based prices for cheaper.(with a cheaper dollar).

And thats not just oil. Everytime our dollar rises against the US greenbuck, all our shopping prices go down. From Walmart to veggies and fruit from the USA.
Even cars.
Basically, we get more for our buck !

 

[cachsux]

Klein, I`ve got some Enron stock I`ll sell you. I`ll even give it to you in Canadian dollars.

 

[JonFrum]

You don't get it.
What do you think the quarterly results are, just from USA ? Or worldwide?
Ofcourse, worldwide.
So, everything has to be converted into US dollars.

Now, secondly.
As an example: 1 Canadian Dollar becomes $2.00 US.
At $100 a barrel of oil.
We will pay $50 cdn for it, you pay $100.
So, no, it's only the US that has to pay more for oil, if the US currency devaluates.
Euro, and other currencies can buy the US Oil based prices for cheaper.(with a cheaper dollar).

I assume only a very small amount of UPS' worldwide revenue is brought back to the USA and converted to US dollars. I assume UPS has traders who hedge against a devaluation of the dollar so UPS doesn't loose money in the conversion of that small amount.

 

[klein]

I assume only a very small amount of UPS' worldwide revenue is brought back to the USA and converted to US dollars. I assume UPS has traders who hedge against a devaluation of the dollar so UPS doesn't loose money in the conversion of that small amount.

You don't get it , here is another better example :

You send a package to Canada, eventually a cdn driver will deliver it... but now the cost went up... because that package was paid in US dollars.
Same worldwide.

All these drivers are earning more in US dollars...
Say, Phillipines for example, last yr they worked for $12 a day, now it's with exchange rate $20 a day.
The package that came from the US, now costs more ....(either raise rates or profits are lower).

 

[j13501]

I was under the impression that employee shares were worth 10 votes vs public shared being worth 1 vote.

Is this not the case? Seems like the BOD would be full of former employees if this were the case since they would have by far more voting power.

Random,
You are correct. Class A shares (which are employee owned/purchased directly from UPS) have 10 votes to only 1 for Class B shares which are purchased on the open market.

The difference is that our company had to change the makeup of the BOD with the passage of the Sarbanes-Oxley Act in 2002. This law was passed after the Enron and Worldcom scandals. One provision called for a more "independent" BOD, which wouldn't just "rubber stamp" the wishes of the CEO, COO, etc. My understanding was that at least 1/2 the BOD had to be non-employees (or non- former employees).

In our typical way, we went above and beyond. Today 8 of the 10 UPS Board members are non-employee directors.

I believe that the 10 -1 ratio of votes between A and B shares doesn't make any difference because the people with the most shares believe that we have made the right decision regarding the Board make-up.

 

[nhguy]

W,

All those things you talk about gaining from going public were already viable aspects of UPS prior to ever going public. Investors wanted our stock, institutions own most of the shares held in the market. When we went public, we were scrutinized by these analysts that initially didn't understand our business. As a result you saw the upper management start micro-managing the company. We had one of the best credit ratings of any major company for many years. We used to pay cash for everything. Wall street doesn't like companys with no debt. Wall street also doesn't like to see lots of cash sitting around. We could have stayed private and continued to do quite well. Our biggest downfall was that we were so cautious and slow to implement new strategies, new services, new spinoff companies, that competition got stronger , became more advanced on technology and so on. We were always a day late and reacting instead of being proactive.

UPS is sadly looked at as a company with high labor costs, highly vulnerable to oil prices, lives and dies off the consumer, and is a giant that struggles to grow. Those that made all the money by making us public are the reason the rest of us will never reap the benefits of our hard work that they did.

REMEMBER THE BIG FISH ALWAYS EATS THE LITTLE ONES

 

[Just Numbers]

So are you saying we have 8 directors that are clueless about this company. That last one we hired works for a pickle company! Are we divirsifying into the pickle industry and need his expertise?

 

[JustTired]

So are you saying we have 8 directors that are clueless about this company. That last one we hired works for a pickle company! Are we divirsifying into the pickle industry and need his expertise?

I can see it now......

"When it comes to satisfying the Wall St. crowd, we're in a real pickle."

" Well...let's get someone on the board from 'Vlasic'. He'll know what to do."

"Yeah....right....why didn't I think of that?......genius!!!"

 

[1989]

I can see it now......

"When it comes to satisfying the Wall St. crowd, we're in a real pickle."

" Well...let's get someone on the board from 'Vlasic'. He'll know what to do."

"Yeah....right....why didn't I think of that?......genius!!!"

Maybe if UPS had a garbage man, a beer man, and a gambler like FDX things would be much different.

 

[1989]

Hard to argue with a consitant 2-4% return every 20-30 days.

 

[tieguy]

ups does not know how to BS a stock report.
FDX reported terrible earnings but said they saw the economy improving. Fdx stock jumped up.

UPS reported the same type of crappy earnings and said they were not sure the economy was getting any better. An honest answer that does not help the stock price.

Fdx is a shameless huzzy when it comes to working the earnings report.

 

[1989]

With a forward pe of 20. Looks like UPS is a little rich.

 

[wyobill]

Today UPS rang the opening bell at wall street ,opening at 50 dollars a share 10 years ago. The stock has appreciated to 54 making UPS a horrible investment. A bank CD outpaced the dividend over a 10 year mark. I'm sure not the stock appreciation the board anticipated over that 10 years.

 

[randomUPSISer]

Today UPS rang the opening bell at wall street ,opening at 50 dollars a share 10 years ago. The stock has appreciated to 54 making UPS a horrible investment. A bank CD outpaced the dividend over a 10 year mark. I'm sure not the stock appreciation the board anticipated over that 10 years.

How many shares were sold in 1999 on the IPO? How many are outstanding now.

It could be that UPS has still raked in countless millions by selling new issued stock during those 10 years.

 

[wyobill]

How many shares were sold in 1999 on the IPO? How many are outstanding now.

It could be that UPS has still raked in countless millions by selling new issued stock during those 10 years.

I cant answer that. I would think it was somewhat embarrassing to ring the
the wall street bell with a 4 dollar increase from the IPO 10 years ago. Its
nothing to bragg about.

 

[rwsmith67]

I cant answer that. I would think it was somewhat embarrassing to ring the
the wall street bell with a 4 dollar increase from the IPO 10 years ago. Its
nothing to bragg about.

I agree with you Wyobill!!

 

[Dis-organized Labor]

There's a phony bell in the AGB in Louisville.

No one rings it....it just gets dusted every month

 

[randomUPSISer]

There's a phony bell in the AGB in Louisville.

No one rings it....it just gets dusted every month

...and likely dirty looks from the people who resent the company going public

 

[JonFrum]

How many shares were sold in 1999 on the IPO? How many are outstanding now.

It could be that UPS has still raked in countless millions by selling new issued stock during those 10 years.

"UPS, founded as a Seattle messenger service in 1907 by a 19-year-old named Jim Casey, was owned privately by employees, retirees and various foundations until Nov. 10, 1999. On that day, UPS issued 109.4 million Class B shares representing 10 percent of the company's outstanding shares at an IPO price of $50 per share.

At the time, the $5.47 billion raised on that day was the largest domestic IPO ever. Over the ensuing 10 years, public ownership of UPS has grown from 10 percent of the company's stock to 70 percent."
- - - - -
Shares Outstanding: 994,457,???
Float: 985,200,???

 

[JonFrum]

I would think it was somewhat embarrassing to ring the the wall street bell with a 4 dollar increase from the IPO 10 years ago. Its nothing to bragg about.

Imagine if you were a member of the general public and bought shares on Day One at the opening price of $65. Your ten year investment would have earned you about 1%.