Time to buy UPS Stock at 10% off via DESPP

[Catatonic]

www.UPSers.com and search on DESPP

I have not bought any in couple of years through the DESPP but now it seems like a good time to buy @ ~54.50 a share. Must hold for 2 years ... but it's an investment.
Agree?

 

[Mike Hawk]

The one good thing about hiting rock bottom, you can only go up.

 

[over9five]

The one good thing about hiting rock bottom, you can only go up.

....provided that that IS rock bottom......

 

[bad company]

Buy Buy Buy

 

[BigBrownSanta]

I calculated my dividend rate of return earlier tonight including the next 2 dividend payouts for this year. My online bank account still has a slightly higher interest rate.

I also checked my I bond returns and they are currently paying over 6%. BTW that's almost double what stock is paying in dividends.

Buy stock if you want, but you had better have a very long term outlook if you plan on making anything on it.

 

[cachsux]

We have bought and sold UPS stock but on the open market to avoid the restrictions.

 

[Babagounj]

I was watching a financial show this evening & all they could talk about was how great fedex will be when the fuel prices drop. They predicted it going over $100.
Now how is our stock doing, low $60's. About where it started when it went public and has not split once. Unlike Fedex which has split several times.
I have been dumping my shares for something that at least shows promise.

 

[Catatonic]

...
Now how is our stock doing, low $60's. About where it started when it went public and has not split once. Unlike Fedex which has split several times.
...

Actually while FDX has increased by 50% more than UPS since UPS went public, it has not split. Our beta is .9 while FDX is over 1.2, therefore it has more upside potential. However, we can't buy FDX at 10% off which makes UPS as plausible an investment as FDX. Anyway, I just can't buy FDX stock...it doesn't feel right.

 

[Lurker Brown]

Bah... Buy General Electric stock (GE) - It's dirt cheap right now and has an excellent infrastructure model for the next decade and in the emerging markets like China.

I see GE up 25%+ in the next year and with a 4-5% dividend too.

UPS stock is looking pretty good too especially with that 10% off deal.. I may have to jump on some of that too...but I agree...it has been a HUGE disappointment since the IPO. My stock match (non-union) was moved to other investments because of our inability to move the share price. We have a former CFO at the helm now though.... could we see $90 a share in the next 12-18 months? Could be....GE and UPS are good plays...and to be blunt...they ain't going anywhere!

 

[raceanoncr]

Bah... Buy General Electric stock (GE) - It's dirt cheap right now and has an excellent infrastructure model for the next decade and in the emerging markets like China.

I see GE up 25%+ in the next year and with a 4-5% dividend too.

UPS stock is looking pretty good too especially with that 10% off deal.. I may have to jump on some of that too...but I agree...it has been a HUGE disappointment since the IPO. My stock match (non-union) was moved to other investments because of our inability to move the share price. We have a former CFO at the helm now though.... could we see $90 a share in the next 12-18 months? Could be....GE and UPS are good plays...and to be blunt...they ain't going anywhere!

Sorry, you can buy GE all you want but with them still investing and doing business with Iran, I have a hard time buying ANYTHING GE! They do business with Iran, Iran makes and ships bombs and weapons to enemies, enemies kill Americans and others. No thanks!

If anyone has other companies names that do business with killer countries, let me know, I'll stop investing or doing business with them too.

UPS stock? What a loser! I'm stopping my deduction and selling if/when it ever rises. It's gone nowhere in almost ten yrs and continues to go nowhere! I can make more money on other investments that have promise.

Now, remember, this is just my opinion and my take on my own personal actions!

 

[1989]

UPS has been a cash generating machine for me...For years I've been selling covered calls earning $100-$200 a month for every 100 shares I own. I only have 76 shares now because the last couple hundred shares were sold (exercised) in May at $70 and $71....Time to get a couple hundred more shares and write more calls in the $60-$63 range.

 

[bears2]

if you buy the ups stock via the website/paycheck then you get a 10% discount which is more than the bank pays.I agree you have to have a longterm vision in order to really make it worth your while. The 401k is a joke because it doesnt match plus you have to pay fee's. The financial advisor at the bank told me if they dont match there really not good to get into. He told me ups's 401k is one of the worst but its good for people who cant save on their own. As far as ups stock since it went public...it went public,it did split almost right away an jumped back up to 70ish an hasnt really moved at all since. You have to realize ups has spent a bundle on expansion. They spent over 1 billion on worldport about 6-8 years ago and are in the midst of spending another billion right now expanding worldport further. This past contract in my opinion ups won big time an will save alotta money in the process. Ups has the deal with DHL an with all things being equal i think that it may be 2 years or so but ups stock will start moving when the expansion is done an everything else gets into motion and things pan out like they envision.If nothing else just put your raise in the stock program an let it ride.

 

[Enforcerx]

www.UPSers.com and search on DESPP

I have not bought any in couple of years through the DESPP but now it seems like a good time to buy @ ~54.50 a share. Must hold for 2 years ... but it's an investment.
Agree?

due to my wife finally getting a job im going the max..$200 a week..you can buy $10,000 worth every year at the low for that qtr. few hrs of over time pays for it its great!

 

[over9five]

due to my wife finally getting a job im going the max..$200 a week..you can buy $10,000 worth every year at the low for that qtr. few hrs of over time pays for it its great!

Me thinks you shouldn't put all of your eggs in one basket. WAY too much risk. Use some of that money to buy other stock.

 

[raceanoncr]

due to my wife finally getting a job im going the max..$200 a week..you can buy $10,000 worth every year at the low for that qtr. few hrs of over time pays for it its great!

And you think $54 is the lowest it could go? Dream on! Knock yourself out and buy all you want!

 

[Catatonic]

And you think $54 is the lowest it could go? Dream on! Knock yourself out and buy all you want!

UPS has approved/reserved the funding of purchasing $10 billion of UPS Stock. Looking at the prices and volume, it would appear UPS might be stepping in once the stock goes below $60. Also, there are many margin loans against UPS stock and the belief is that at ~$57 some of these margin sells will kick in. Note: I have no inside knowledge, just analysis and speculation by UPSers that get into this type of stuff.
I definitely agree to diversify but UPS via DESPP might be a good buy within a diversified portfolio.

 

[browniehound]

And you think $54 is the lowest it could go? Dream on! Knock yourself out and buy all you want!

I have to agree with Race on this one. The stock can go much lower. I would like to bring Cisco up as an example. During the 1990's it was a HUGE winner making its employees and investors who got in around 1990 very rich.

Then in March of 2000 the price began to fall. It was and is still a great company with a healthy balance sheet (last time I checked, but could be very wrong) just like UPS but the stock fell from about $75/ share in early 2000 to under $20 by 2001.

I just looked it up and it closed at$23 on 8/6 with a 52-week high of $34. The stock was trading well above $75 in the late 1990's, even when we take into account spits which I don't have the information.

I think my point can still be made that I think many smart people said Cisco was a BUY at $75 because it had fallen so much, yet 8 years later its at 1/3 of that value.

So I just want to say BE CAREFULL! Don't take advice from your managers at UPS. Their business is boxes, not financial advice. It sounds nice to be able to buy something at a 10% discount, but just keep in mind what you're buying can lose its value quicking especially when its performance is tied to volatile oil prices!

Heck, UPS can go to zero or 2-3 bucks a share. Don't think so? Talk to the people at Enron or Sun-Micro, or Nortel. Get my point?

 

[Catatonic]

I would like to bring Cisco up as an example. During the 1990's it was a HUGE winner...
Then in March of 2000 the price began to fall. It was and is still a great company with a healthy balance sheet just like UPS but the stock fell from about $75/ share in early 2000 to under $20 by 2001.
Heck, UPS can go to zero or 2-3 bucks a share. Don't think so? Talk to the people at Enron or Sun-Micro, or Nortel. Get my point?

OK...reasonable advise to be careful. However, every company you provided as an example had P/E ratios above 50; some well above...UPS P/E is 14 - 16. Basically UPS is a Utility type stock paying dividends while the others were high-growth technology type stocks that did not pay dividends. UPS is most likely settling in to a long-term P/E ratio in the 14 - 18 range. If our profits go down, so will the stock price.
Bottom line - understand the basics of understanding company fundamentals and financials and if you don't have the time or desire to do that, buy index funds or low cost managed funds. And don't let any one company's stock represent more than 10% of your investments. I readjust my investments at least annually to maintain a balance.

 

[Hawaii50]

I have to agree with Race on this one. The stock can go much lower. I would like to bring Cisco up as an example. During the 1990's it was a HUGE winner making its employees and investors who got in around 1990 very rich.

Then in March of 2000 the price began to fall. It was and is still a great company with a healthy balance sheet (last time I checked, but could be very wrong) just like UPS but the stock fell from about $75/ share in early 2000 to under $20 by 2001.

I just looked it up and it closed at$23 on 8/6 with a 52-week high of $34. The stock was trading well above $75 in the late 1990's, even when we take into account spits which I don't have the information.

I think my point can still be made that I think many smart people said Cisco was a BUY at $75 because it had fallen so much, yet 8 years later its at 1/3 of that value.

So I just want to say BE CAREFULL! Don't take advice from your managers at UPS. Their business is boxes, not financial advice. It sounds nice to be able to buy something at a 10% discount, but just keep in mind what you're buying can lose its value quicking especially when its performance is tied to volatile oil prices!

Heck, UPS can go to zero or 2-3 bucks a share. Don't think so? Talk to the people at Enron or Sun-Micro, or Nortel. Get my point?

UPS instituted the 2 year old hold on stock purchase done through the discounted purchase program. Sometimes I wonder in the event UPS collapses like Enron, can the employee sell the stock that did'nt meet the 2 year hold requiremen, in an attempt to minimize their loss. Knowing UPS they will *&#k over the employee.

 

[browniehound]

UPS instituted the 2 year old hold on stock purchase done through the discounted purchase program. Sometimes I wonder in the event UPS collapses like Enron, can the employee sell the stock that did'nt meet the 2 year hold requiremen, in an attempt to minimize their loss. Knowing UPS they will *&#k over the employee.

I don't know the rules of the DESPP so this is just a guess. You can probably sell anytime you want, its your money. If you do so in that 2-year period I think you would be lose to 10% discount and pay other penalties just to start. Again I don't know exactly what happens, but I'm sure you can sell anytime you want, you will just not recieve any of the benefits the plan is intended to give you.