Mad Money

bacha29

Well-Known Member
Did you guys happen to see CNBC's Mad Money last night? The host JC the long time suffer of cranial rectalitis did a feature on Fedex. He said that due entirely to the purchase of TNT the stock price of Fedex will go up 50% within the next year. He never mentioned a single word about Ground. That should be good news for Ground contractors because what it means is that your performance this coming peak season good or bad has no bearing on the matter whatsoever..... until the next time Fat Freddy needs some cash.
 

bacha29

Well-Known Member
FedEx stock includes Ground.
You missed the point. The anticipated 50% run up in the stock price will be entirely attributable to the TNT acquisition or so our illustrious host thinks and quite possibility so do others What I'm pointing to is that there has always seemed to be a designed attempt to hide the fact that the Ground component 's volume is farmed out to third party contractors and appears to in the belief of some tarnish the shiny and virtuous image of the company.
 

NYCFXG

Well-Known Member
Jim Cramer has absolutely no idea that Ground is made up of independent contractors. His show is 90% entertainment and 10% informative. If he says TNT is the reason, well his viewers will agree and propagate the argument. We all know TNT is just the international version of the profitless Express.
 

bacha29

Well-Known Member
Jim Cramer has absolutely no idea that Ground is made up of independent contractors. His show is 90% entertainment and 10% informative. If he says TNT is the reason, well his viewers will agree and propagate the argument. We all know TNT is just the international version of the profitless Express.
One morning 3 years ago he was on Squawk On The Street bragging on and on about Express until Becky Quick spoke up and slowly, loudly and emphatically said.....".But they make all their money off of Ground". While Cramer sat there in stunned silence the other panelist skillfully moved the show onto the next segment. One of the funniest pieces of airtime I ever heard. To have this young woman completely humiliate and discredit him on a live nationwide broadcast.
 

Star B

White Lightening
if Express is profitless, then why are we here? Just so that we can go "WHEEEEEEE!!!?"

We may not print money like Ground does, but we do hold our share.
 

bacha29

Well-Known Member
if Express is profitless, then why are we here? Just so that we can go "WHEEEEEEE!!!?"

We may not print money like Ground does, but we do hold our share.
Purchasing TNT was an attempt to bring Express into a more profitable setting and given how European economies are improving it looks like it will work in time.There is no question that Fat Freddy fell into a gold mine when he got a hold of RPS. In fact a Roadway executive told me afterward that there was considerable opposition to the sale an there was some in the company who wanted to either get it back or try to start up a successor to RPS.
 

Oldfart

Well-Known Member
Purchasing TNT was an attempt to bring Express into a more profitable setting and given how European economies are improving it looks like it will work in time.There is no question that Fat Freddy fell into a gold mine when he got a hold of RPS. In fact a Roadway executive told me afterward that there was considerable opposition to the sale an there was some in the company who wanted to either get it back or try to start up a successor to RPS.
What did you advice them to do?
 

SmithBarney

Well-Known Member
if Express is profitless, then why are we here? Just so that we can go "WHEEEEEEE!!!?"

We may not print money like Ground does, but we do hold our share.

Don't let your managers try to tell you otherwise, Express makes a pretty nice profit,(despite the horrendous costs associated with having employees /s ) Ground Makes a nicer profit because from FDX they have must less overhead than Express, FDX isn't paying for trucks, or pensions, or truck insurance, at Ground.
And without Ground, Express would definitely be able to stand on it's own.
 

It will be fine

Well-Known Member
Don't let your managers try to tell you otherwise, Express makes a pretty nice profit,(despite the horrendous costs associated with having employees /s ) Ground Makes a nicer profit because from FDX they have must less overhead than Express, FDX isn't paying for trucks, or pensions, or truck insurance, at Ground.
And without Ground, Express would definitely be able to stand on it's own.
I believe Express makes more actual profit, Ground just has higher margins.
 

It will be fine

Well-Known Member
But Ground has more growth, and will eventually be more profitable if they can hold that model together.
Ground has been closing the gap for a while now. It sounds like the TNT deal should really expand the reach of Express though. If they become a bigger player in Europe there's plenty of opportunity for Express growth.
 

fredxx

Well-Known Member
If express DOESNT make $$$ then how the heck could they afford to BUY TNT in the first place?? Also with FRED buying back BILLIONS of $$ of stock i'm sure it's coming from some place other than his pockets...since his pockets continue to grow along with the other share holders to the tune of $226 ish per share tdy...they LOVE to tell us how poorly we're doing ...probably so they can justify pay raises that barely keep up with inflation..and many times NO raise at all...whenever they give us the koolaide of how much $$ the company is losing then i think to myself ...how the hell did FRED become a damn multi-BILLIONARE...and one of the wealthiest in USA...It's on the back of all of couriers/ handlers/ ramp personel etc....Notice i DON't include mgmnt cuz those guys are probably the reason the profits aren't what's expected...another words they're paper pushers plain & simple...when they go on the road like they did 25-30 yrs ago they were earning they're keep....that's when the company was killing the bottom line....now they don't even want to touch a pkg forget about delivering one...
 

floridays

Well-Known Member
Purchasing TNT was an attempt to bring Express into a more profitable setting and given how European economies are improving it looks like it will work in time.There is no question that Fat Freddy fell into a gold mine when he got a hold of RPS. In fact a Roadway executive told me afterward that there was considerable opposition to the sale an there was some in the company who wanted to either get it back or try to start up a successor to RPS.
Purchasing TNT was for their dedicated routes in Europe.
 

bacha29

Well-Known Member
If express DOESNT make $$$ then how the heck could they afford to BUY TNT in the first place?? Also with FRED buying back BILLIONS of $$ of stock i'm sure it's coming from some place other than his pockets...since his pockets continue to grow along with the other share holders to the tune of $226 ish per share tdy...they LOVE to tell us how poorly we're doing ...probably so they can justify pay raises that barely keep up with inflation..and many times NO raise at all...whenever they give us the koolaide of how much $$ the company is losing then i think to myself ...how the hell did FRED become a damn multi-BILLIONARE...and one of the wealthiest in USA...It's on the back of all of couriers/ handlers/ ramp personel etc....Notice i DON't include mgmnt cuz those guys are probably the reason the profits aren't what's expected...another words they're paper pushers plain & simple...when they go on the road like they did 25-30 yrs ago they were earning they're keep....that's when the company was killing the bottom line....now they don't even want to touch a pkg forget about delivering one...
They financed it through a 3.6 billion dollar bond issue. Xpress makes money ,only problem was with Ground's net operating margin percentage in the mid to high teens while Express was in the mid to high single digits it honked off Fat Freddy so he set about on his cost cutting and staffing buy out crusade. It's margins have improved but will never match ground's margins unless Express converted to the so called 'Independent contractor" scam oops I mean " business model" but that will never happen.
 

fredxx

Well-Known Member
Accounting tricks CAN manipulate it to look the way they want it to look...Bacha u r correct it they ever went to the scammy route FRED BOY would make even more $$$$!! GUARANTEED....
 
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