Memphis Daily News - FedEx, Team Members Awarded Govt. Contract

FedEx, Team Members Awarded Govt. Contract

The United States Transportation Command (USTRANSCOM) has awarded a $1.37 billion contract to FedEx Corp. and its team for international airlift services. The team is a consortium that also includes Air Transport, Atlas Air, Northwest Airlines, Omni Air International, Polar Air Cargo Worldwide and Tradewinds Airlines.

The contract guarantees that FedEx will receive a minimum of $150,730,792.92.

The contract is for services, which will include short- and long-range transport of Department of Defense passengers and cargo.

The mission of USTRANSCOM is to provide air, land and sea transportation for the Department of Defense.

The work under this agreement will be undertaken at FedEx hubs and the hubs of team members around the world, and is expected to be completed by September 2009, according to USTRANSCOM Office of Legislative Affairs.

FedEx competed among 30 proposals for this contract.

 

SO. . when the he!! are the dipsticks on the Board of Directors going to authorize the LONG overdue stock split ! ? ! ?

It has been about 1999 (FDX - FedEx Corporation - Google Finance) -click on 'max' . . . since the last one - and the historic prices are WELL above what it was at each and every former level at a split.

TAKE CARE of your shareholders !!

 

That's nice, and don't get me wrong because everything helps now days, but that represents less than .5% or our annual revenue.

 

W0X0FF,

I am sorry but I see no advantage of doing this. See below:

Advantages of Stock Splits
Lower prices per share can result in greater liquidity – stocks are easier to sell at lower prices and there is less of a bid/ask spread. This is especially true for stocks that are priced in the hundreds of dollars – small investors view them as out of their budget and the high bid/ask spreads (the difference between buying and selling prices) can put off bigger investors.

Other advantages of stock splits have to do with investor psychology. A split is usually seen as a bullish indicator – stock prices are increasing and the company is doing well financially. There is usually a short-term rally around a stock which splits, but the market tends to normalize after a short period.

Disadvantages of Stock Splits
On the downside, stock splits may cause investors to expect more about how the company performs. If these expectations are not met investor confidence may be shaken and the result could be a drop in share prices.

The bottom line is a stock split does nothing to affect the worth or performance of a company. It may be nice to own more shares, but in the end your 2 five-dollar bills are still worth the same as your ten-dollar bill.


Whale...

 

Gotta agree with Whale here...

I could see a split if the stock was rocketing above $100 with no end in sight - that three-digit price seems to be a psychological barrier for many investors. Of course, that's not always true - witness Google and Berkshire Hathaway.

But for a huge, established company like FedEx - a stock split in this climate could be seen as an artificial attempt to create a positive outlook on the stock.

Bottom line - a split will occur when the company value increases enough to push the stock well above the $100 mark and keep it there. Even then, it's not guaranteed, and it does nothing for the shareholders - dividends are diluted in direct proportion to the split and your overall share value remains the same.

 

Paying attention to your stockholders and their daily rants is akin to your children... listen but remember that you are the adult. Sorry W0XOFF you're wrong on this one.

 

Ditto ...

 

As Whale's post says, stock splits are stictly psychological. You don't get anymore money from them.

 

As my dear, sainted mammy once told me: 'Don't ever listen to . .or take financial advice from a pilot. They are mostly all blithering idiots when it comes to money sense.'

Mammy was nearly always right . .and you dolts prove her point.

Glad I didn't listen to any of the Wall Street Journal reading crew force when I went into hock for twice my annual F/O salary back then to buy those 1500 shares at the 'employee IPO' price of $22/share. Yup . . 'stock splits are strictly psychological' . . what a dipstick.

If you listened to the large waterlogged mammal -and the dope above, you would have nada, instead of the (after 4 'splits') 24,000 (+ more purchased on the 'Employee Stock Purchase Plan') shares -at the $90.50 it might close at today Fedex Corp (FDX) - Stock chart, Index chart - MSN Money

If you got a $10 stock that splits you DO NOT have just 2 $5 shares! You have a stock priced now in the range of a lot more people who were reticent to buy it at the higher price. All of a sudden, your 2 $5 shares are worth . . $20 . . $40 . . more . . due to market forces.

It isn't just the Whale who's all wet. I have the nice retirement portfolio to prove it. Oh . .yeah . . that crappy 500 shares of Apple stock I bought at about $13 a share has split twice . . yep . . 'splits' are just a figment of the imagination.

 

Hey, that is great news.

I'll take that .5% in small bills please.