UPS: Take Advantage Of Irrational Pricing

[cheryl]

UPS: Take Advantage Of Irrational Pricing - Seeking Alpha

The market generally reacts to negative news too drastically and in many cases value can be found before the dust settles. UPS has been dinged up in the past few months by a combination of mis-estimating holiday traffic and increased costs due to the harsh weather over the first quarter. These events led to United Parcel Service (UPS) missing analysts' estimates which has resulted in a buying opportunity.

 

[upschuck]

I thought this was about UPS's shipping prices.

Anyways buy low, sell high.

 

[oldngray]

I thought it meant UPS was using irrational numbers in their shipping rates.
http://en.wikipedia.org/wiki/Irrational_number

 

[upschuck]

I thought it meant UPS was using irrational numbers in their shipping rates.
http://en.wikipedia.org/wiki/Irrational_number

They do. I can ship across country less than I can a couple cities away.

 

[Catatonic]

They do. I can ship across country less than I can a couple cities away.

Please give an example

 

[upschuck]

Without giving location away. Package going about 80 miles south 10.84. Package going 90210 Beverly hills is 10.49. Beverly hills is over 2000 miles away.

 

[bbsam]

I thought the headline meant Amazon should take advantage of it's rates now because UPS will soon let them skyrocket in response to Amazons own delivery network.

 

[brownrod]

I think the stock price is irrationally high. UPS is not growing. You buy stocks for growth.

UPS' growth strategy are cockamamie schemes to get the drivers to be more productive. Ignoring outdated buildings and equipment. spend billions on Orion? I'm offended.

 

[IlllIIllIIlllIllIIIlIlIlI]

Without giving location away. Package going about 80 miles south 10.84. Package going 90210 Beverly hills is 10.49. Beverly hills is over 2000 miles away.

I'm guessing that one that's 80 miles south has a rural delivery surcharge.

 

[upschuck]

I'm guessing that one that's 80 miles south has a rural delivery surcharge.

True, but the stop can be next to the center, and still charged the same. City website shows 99% urban, 1% rural.

 

[ups1990]

I think the stock price is irrationally high. UPS is not growing. You buy stocks for growth.

UPS' growth strategy are cockamamie schemes to get the drivers to be more productive. Ignoring outdated buildings and equipment. spend billions on Orion? I'm offended.

Maybe I'm naive, but the more I think about it, it may be that ORION will be used as a tool to fool investors(not ups employees) into believing costs are actually being realized on paper. Forget that drivers are driving more miles in order to achieve 85% trace and working longer.