UPS to increase debt by $10 billion

[BigBrownSanta]

Meanwhile the oil prices have been in constant turmoil well prior. Concerns about the economy well prior to these dates. Interests rates, inflation concern about a slow christmas peak season well prior. Yet the stock stayed up in the 71 through 73 range through all that. then the stock takes a huge drop thus my comment that long term investors were possibly starting to read through and absorb the huge cost behind this contract and dumping the stock. That 6.1 billion dollar hit is going to scare people away from this stock as we go along. I imagine we will be getting tempered earnings expectations soon due to the slowing economy. Some analysts will then try to read between the lines and throw the labor contract in there as a reason. This company is gambling that that 6.1 billion will be well spent in the long run. They have lost their top credit rating and they are now getting ready to absorb 10 billion dollars worth of debt. All of these are reasons the stock took a huge drop not the other factors which were present before.

I think you're just toying with me...

It's possible the contract could play a part, but I doubt it. There are too many variables the analysts would have to know, and the company doesn't report that much in detail. The best the analysts could get is a SWAG. Maybe if the company decides to play the contract card when it doesn't meet earnings expectations again, it might be a factor.

I believe most investors were taking a wait and see stance to see how Christmas played out.

All these factors were present before, I agree, but after Christmas, many sub prime lenders announced additional write-offs, the jobs report came out Jan 4 with only 1/5 new jobs created than was expected, and retailers started reporting their mediocre Christmas sales. It's been day after day bad news which increased the anxiety in investors of a recession.

BTW, our contract must be some pretty powerful reading since the DOW, S&P 500, and Nasdaq all fell about the same during this time period.

http://moneycentral.msn.com/investo...artbt=Redraw+chart&symbol=UPS&nocookie=1&SZ=0

 

[tieguy]

I think you're just toying with me...

well i have to admit you do bring an intelligent debate......

It's possible the contract could play a part, but I doubt it. There are too many variables the analysts would have to know, and the company doesn't report that much in detail. The best the analysts could get is a SWAG. Maybe if the company decides to play the contract card when it doesn't meet earnings expectations again, it might be a factor.

I believe most investors were taking a wait and see stance to see how Christmas played out.

All these factors were present before, I agree, but after Christmas, many sub prime lenders announced additional write-offs, the jobs report came out Jan 4 with only 1/5 new jobs created than was expected, and retailers started reporting their mediocre Christmas sales. It's been day after day bad news which increased the anxiety in investors of a recession.

BTW, our contract must be some pretty powerful reading since the DOW, S&P 500, and Nasdaq all fell about the same during this time period.

http://moneycentral.msn.com/investo...artbt=Redraw+chart&symbol=UPS&nocookie=1&SZ=0

Might be. You're probably right. I do think there is a crowd of investors out there that are concerned with the contract and our labor costs. Same ones now see labor troubles on the horizon for fdx.

 

[BigBrownSanta]

I do think there is a crowd of investors out there that are concerned with the contract and our labor costs.

Alot of those would management. I too hope our stock does well. I think that's why many of the problems with PAS/EDD don't get fixed. The morale of management is low. Up until recently, I never heard management talk bad about the conpany. Now, I hear, "the stock never goes up" or "drivers make more than we do". Maybe if their stock starts to increase, they'll feel there's something in it for to them to fix problems.

Same ones now see labor troubles on the horizon for fdx.

That and DHL downsizing their operations in the US puts UPS in a very good position going forward. I just hope Davis can capitalize on it.

 

[FAVREFAN]

Hey BigBrownSanta.......Don't you ever get tired of defending your posts(stock) when you actually know what you are talking about? You have hit it right on the head everytime with your stock analysis and all the street analysts agree with you. Yet here, seems everyone knows more about it than you. If anyone wants to understand what moves UPS stock, listen to BigBrownSanta, he has done his homework. Great posts man, spot on.

 

[tieguy]

Hey BigBrownSanta.......Don't you ever get tired of defending your posts(stock) when you actually know what you are talking about? You have hit it right on the head everytime with your stock analysis and all the street analysts agree with you. Yet here, seems everyone knows more about it than you. If anyone wants to understand what moves UPS stock, listen to BigBrownSanta, he has done his homework. Great posts man, spot on.

and brett favre is the greatest QB ever?

 

[JustTired]

I didn't understand the point. Corporate america is also ups which provides us with the jobs we have?

Many investors in this country also invest in china?

Your right..........UPS is part of "corporate America" and they do provide us with jobs. But unlike most corporations, it would be harder for them to export our jobs to foreign countries. Don't think for a minute that if they could import workers to fill our positions, they wouldn't do it. The fact that many large corporations are exporting our jobs and the fact that they control our government through lobbying and contributions (legal and illegal) is my point. I'm of the opinion that many of these corporate "bigshots" would sell their grandmothers if they thought it would turn a profit.

You're also right.......many do invest in "Communist China". Typically to exploit the cheap labor and the lack of safety and enviromental standards. Profits made from these "cheap" products are reinvested by buying into American corporations or are used as loan instruments, loaning us the money back. So while "corporate America" profits from these deals, the average American pays, through loss of jobs and higher government debt.

"Communist China" is not our friend. And someday it will become very apparent. I fear it will be too late at that point.

 

[FAVREFAN]

and brett favre is the greatest QB ever?

Without a doubt pal. But unfortunately only until Peyton Manning plays 6 more years.

 

[brownmonster]

Adding this years ring would help.

 

[BigBrownSanta]

Hey BigBrownSanta.......Don't you ever get tired of defending your posts(stock) when you actually know what you are talking about? You have hit it right on the head everytime with your stock analysis and all the street analysts agree with you. Yet here, seems everyone knows more about it than you. If anyone wants to understand what moves UPS stock, listen to BigBrownSanta, he has done his homework. Great posts man, spot on.

I have to have something to do during my mandatory 1 hour lunch, so I read alot of financial news at various web sites. Thanks for the support.