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C'mon Wall St. Give UPS some love
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<blockquote data-quote="randomUPSISer" data-source="post: 620392" data-attributes="member: 24399"><p>Question: How many outstanding shares of FedEx exist? How many outstanding shares of UPS exist? </p><p></p><p>If fedex had only 10,000 shares, while UPS had 20,000 shares, you would expect the shares of FedEx to always be worth more assuming the two companies were the same. (I know they arent) </p><p></p><p>Does UPS give out too many shares of its stock to the point that the stock is diluted? </p><p></p><p>My gut feeling is that UPS is a dividend stock. The company "creates" too many pieces of stock from MIP, LTIP, and selling to employees at discount. I'm guessing the company doesnt buy enough of these back. </p><p></p><p>It would be really easy to bump the stock price up. Buy back more stock than you create. Eventually the company stock would be rarer and thus worth more since the total market cap would at least hang out around liquidation cost or higher. I dont think the management committee is really interested in growing stock price. I think they are happy getting rich dividend payments. So long as the stock price stays low those guys get huge numbers of stock units from MIP and LTIP.</p><p></p><p>I dont know who sits on the BOD for UPS, but since UPS used to be private and the private shares are worth more votes than public (was it 10:1?) then it would seem that the BOD would be filled with past high level managers with TONS of stock. They may be happy to hang out milking the company from a high dividend payment.</p></blockquote><p></p>
[QUOTE="randomUPSISer, post: 620392, member: 24399"] Question: How many outstanding shares of FedEx exist? How many outstanding shares of UPS exist? If fedex had only 10,000 shares, while UPS had 20,000 shares, you would expect the shares of FedEx to always be worth more assuming the two companies were the same. (I know they arent) Does UPS give out too many shares of its stock to the point that the stock is diluted? My gut feeling is that UPS is a dividend stock. The company "creates" too many pieces of stock from MIP, LTIP, and selling to employees at discount. I'm guessing the company doesnt buy enough of these back. It would be really easy to bump the stock price up. Buy back more stock than you create. Eventually the company stock would be rarer and thus worth more since the total market cap would at least hang out around liquidation cost or higher. I dont think the management committee is really interested in growing stock price. I think they are happy getting rich dividend payments. So long as the stock price stays low those guys get huge numbers of stock units from MIP and LTIP. I dont know who sits on the BOD for UPS, but since UPS used to be private and the private shares are worth more votes than public (was it 10:1?) then it would seem that the BOD would be filled with past high level managers with TONS of stock. They may be happy to hang out milking the company from a high dividend payment. [/QUOTE]
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