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The FedEx Ground Threat
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<blockquote data-quote="Catatonic" data-source="post: 1075665" data-attributes="member: 7966"><p>OK, I will explain myself better.</p><p>UPS has a large number of retired management and past/current Board members that own a lot of Class A stock.</p><p>The premise of that stock ownership is that UPS will pay "good" dividends to keep all this stock from being dumped.</p><p>Furthermore, FDX has an annual yield of ~0.6% while UPS has an annual yield of ~3.0%.</p><p>UPS has to set aside a larger amount of their profits to pay this expected percent yield.</p><p></p><p>As regards to % increase -</p><p>FDX has historically had a beta of 1.3 or more - a fairly volatile stock. </p><p>UPS has been .85 or so which means less volatility. </p><p>FDX (15 PE) is catching up to UPS (22 PE) in regards to their PE ratio.</p><p>Considering the similarities of the two companies, this is a large gap in PE ratios.</p><p>And remember - UPS is a dividend stock, not a growth stock.</p></blockquote><p></p>
[QUOTE="Catatonic, post: 1075665, member: 7966"] OK, I will explain myself better. UPS has a large number of retired management and past/current Board members that own a lot of Class A stock. The premise of that stock ownership is that UPS will pay "good" dividends to keep all this stock from being dumped. Furthermore, FDX has an annual yield of ~0.6% while UPS has an annual yield of ~3.0%. UPS has to set aside a larger amount of their profits to pay this expected percent yield. As regards to % increase - FDX has historically had a beta of 1.3 or more - a fairly volatile stock. UPS has been .85 or so which means less volatility. FDX (15 PE) is catching up to UPS (22 PE) in regards to their PE ratio. Considering the similarities of the two companies, this is a large gap in PE ratios. And remember - UPS is a dividend stock, not a growth stock. [/QUOTE]
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