The 97x's earnings is due to one-offs. Fed-Ex has a horrible yield!! For 2013 fedex is guiding for a 6% decline year over year. UPS is guiding for a 500% increase in earnings y/y. The article was written due to fedex's nearly $12 slide in stock price in just the past month. Author states he currently does not own fedex but the entire article smacks as a pump n dump
Express is in free-fall, while Ground is raking it in big time. Overall, FDX will continue to be profitable due to the Ground scam. As long as FedEx can have people working for less than half what a UPS driver makes, they will be able to undercut Brown on price every time. Take away the cheap labor and you've got an incredibly mis-managed company headed down the toilet...fast.
All of the stock pimps and cheerleaders say FedEx stock will continue to rise, which sounds like the "pump and dump" you mention. I fully expect the Express opco to start losing money very shortly, and for those losses to compound as upper management continues to spend huge money on a dysfunctional new routing system (DRA), new jets, and massive hiring.
