UPS: Dual Motives for Investing - Seeking Alpha
United Parcel Service Inc is in a great position to profit from increasing e-commerce sales, as the company claims to handle the delivery of more than 50% of goods bought online.
UPS is also appealing because of its financing activities. UPS boasts an impressive track record of generating strong cash flows and using its cash to buy back shares. According to the company’s annual report, UPS plans to buy back approximately $2 billion worth of its shares in 2011. To give you an idea of the substantial impact that the 2011 projected buybacks would have made if completed at the end of 2010, the company would have taken about 27 million shares off the market, leading to an earnings per share increase of approximately 10 cents or 2.8%.
United Parcel Service Inc is in a great position to profit from increasing e-commerce sales, as the company claims to handle the delivery of more than 50% of goods bought online.
UPS is also appealing because of its financing activities. UPS boasts an impressive track record of generating strong cash flows and using its cash to buy back shares. According to the company’s annual report, UPS plans to buy back approximately $2 billion worth of its shares in 2011. To give you an idea of the substantial impact that the 2011 projected buybacks would have made if completed at the end of 2010, the company would have taken about 27 million shares off the market, leading to an earnings per share increase of approximately 10 cents or 2.8%.
