Originally Posted by
kwri10s
If a company is rapidly losing money or market share then a prudent money saving method is to lay off workers and Wall Street understands that. (When there is a need for more revenue to get back to profitability and revenue generaters are let go, the stock keeps going down or stagnates)
If a company is making money, then layoffs signal to share holders that things are getting worse and Wall Street will punish that companies stock. (When costs are reduced, the stock price goes up)
Wallstreet knows the long term growth story. IMHO, a cost reduction plan to improve earnings will shoot the stock up. Or, at least, cause FDX stock to fall less than the general market. Now might be the time to buy before the 'manning mitigation' measures are announced.