Me Likes The Stock Price!

[wkmac]

OK thought a change of scenery would be nice so the stock appears to be doing pretty good right now. A little accelerated earnings and I think this stock could be at the target $68 well before the 12 month deadline. Anybody want to talk about the stock or do we keep wee weeing on each others shoes?

If we're gonna wee wee then somebody needs to go on a beer run. I'm wee wee'd out!

 

[badhab1]

I'm game. I'm surprised that you would be happy using an analyst's 12 mo. est. of 68 bucks as a positive. I personally think that number is too low. Although we have demonstrated amazing resilience, even as the market plunged below 8K, I still believe that short term we will retreat a few bucks. After a stagnant 3rd, we should make some serious moves. JMHO> of course uncle Sam could help with an early Christmas with a huge refund.

 

[wkmac]

I think that number is to low as well "BUT" this depends on UPS being able to start to grow it's earnings. If UPS stumbles in any way at the present PE ratio, it's gonna hurt however if we can grow the core business while rapidly expanding the other parts then we may be on the target prices being thrown around about a year or so ago and that was $80. If we get earnings up around $2.50 per share (CBS MarketWatch showing next year's earnings at $2.56 for example) then using the current PE of 31 plus and we are at the $80 mark. If we can put an extra dime on the earnings using the current quarter's $.54 as a base and maintain that then we're there. That's a 18 to 20 percent growth if my math is right but looks like some are already predicting that anyway so I say let's make em' look good. LOL!

I also think volume growth and earnings growth will ease a lot of pressures across the board and many ills I see being discussed will move by the wayside helping the attitudes of all. This in turn may have an even more positive effect on the growth of the business and maybe accelerate things even more. JMO.

 

[rshoe4056]

Nice to see some stock talk on this board.
Take a look at the UPS stock price just one year ago, and today's price will put a gleam in your eyes.

 

[michael]

wkmac

I'm not greedy, I'll be happy with 12-15 %, VERY happy ...Considering what some of my other investments have been doing..

Michael

 

[michael]

Can anyone answer a question here.

How is a companies PE ratio determined. I know what it means , but how is the number determined? Secondly , why is the PE ratio for UPS 31 and FDX 21 ?

 

[moreluck]

Price earnings ratio. This measures whether a stock is overvalued or not. You take the stock's current market price and divide it by its current
earnings.

Quoted from "Complete Idiot's Guide to Making Money on Wall Street".

The reason Ups's # is different from Fdx"s # is that's the way the math works out.

Usually the lower the P/E #, the more desirable the stock......But, that theory went to pot when all the dot.coms had terrible P/E #'s and were at such high prices per share. I think we're now returning to basics with so much failure in the dot.coms.
The book I mentioned has been a great help in understanding the stock market and it's written in plain English in terms that the normal person can understand. I've found it to be invaluable.

 

[wkmac]

Another ratio to consider is Price to Sales. Many folks, including William O Neil of Investor's Business Daily speak highly of this ratio. Many variables can effect earnings including one time events but sales are sales and it's harder to fug. If you see a stock with a Price/Sales ratio of less than 1 it means you can buy the stock and get a $1 of sales for less than a dollar. If the company is very efficent and has a good profit margin this will usually transfer to excellent earnings. In light of the various scandals at World Com, Enron, Global Crossing, etc. I've often wondered what these companies Price/Sales ratio was and would this have been a warning signal that people missed. I've never owned any of these stocks (I learned my hard lesson from Lucent, LOL!) so I've never investigated it. Also had I studied this ratio on Lucent I would not have lost what I did so I did get something out of it, I just wished I could have done so cheaper! LOL!