FDX - Surf's Up! I Hope It's a Long Set
11-16-2009, 07:08 PM
#1
Gets Weekends Off
Thread Starter
Joined APC: Jul 2007
Position: Gear Monkey
Posts: 3,193
FDX - Surf's Up! I Hope It's a Long Set
FedEx (NYSE: FDX) looks to ride the economic recovery
and deliver bigger earnings to investors through the next several quarters, a Barron’s article reported today.
The shares are already up over 100% since hitting the bottom on March 9, 2009 outpacing the S&P 500, who has seen a gain of about 63%.
An obvious reason for such a momentous gain would be that FedEx is a major player in an industry that is tied closely to GDP numbers and general economic recovery; an extraordinarily cyclical stock.
The economic recovery is even more reinforced by FedEx’s prediction that its busiest day of the year, December 14, will see them shipping about 8% more packages year-over-year. This amounts to 13 million this year versus 12 million in 2008.
Shares of FedEx have also returned about 5.7% every year, compared to 0.3% for United Parcel (NYSE: UPS) and a (0.3%) for the S&P 500.
Because of the cost, FedEx’ largest source of revenue is their Express division.
FedEx Express relies mainly on airplanes, unionized pilots, landing fees, and other larger costs, that are passed along to the consumer for the convenience of overnight, or even same-day, package delivery.
Express, however, has nice operating leverage, making it well-positioned when a full economic recovery occurs.
FedEx Ground is also a great hedge against a down economy.
Their drivers are largely independent, and get paid based on the amount of stops they make and packages they move.
The division has also grown, accounting for about 20% of total revenues last year versus 11% in 2000.
Finally, FedEx’s market share has grown in the U.S. to 22%, compared to 10.6% in 1999.
StreetInsider.com - FedEx (FDX) Does What Brown Can't - Barron's
and deliver bigger earnings to investors through the next several quarters, a Barron’s article reported today. The shares are already up over 100% since hitting the bottom on March 9, 2009 outpacing the S&P 500, who has seen a gain of about 63%.
An obvious reason for such a momentous gain would be that FedEx is a major player in an industry that is tied closely to GDP numbers and general economic recovery; an extraordinarily cyclical stock.
The economic recovery is even more reinforced by FedEx’s prediction that its busiest day of the year, December 14, will see them shipping about 8% more packages year-over-year. This amounts to 13 million this year versus 12 million in 2008.
Shares of FedEx have also returned about 5.7% every year, compared to 0.3% for United Parcel (NYSE: UPS) and a (0.3%) for the S&P 500.
Because of the cost, FedEx’ largest source of revenue is their Express division.
FedEx Express relies mainly on airplanes, unionized pilots, landing fees, and other larger costs, that are passed along to the consumer for the convenience of overnight, or even same-day, package delivery.
Express, however, has nice operating leverage, making it well-positioned when a full economic recovery occurs.
FedEx Ground is also a great hedge against a down economy.
Their drivers are largely independent, and get paid based on the amount of stops they make and packages they move.
The division has also grown, accounting for about 20% of total revenues last year versus 11% in 2000.
Finally, FedEx’s market share has grown in the U.S. to 22%, compared to 10.6% in 1999.
StreetInsider.com - FedEx (FDX) Does What Brown Can't - Barron's
11-16-2009, 09:46 PM
#3
Gets Weekends Off
Joined APC: Feb 2007
Position: Unknown Rider
Posts: 533
Wow! I always thought you were a nice guy. Now, maybe I think you are a PO'ed Pit Bull. Have you ever thought of channeling the anger into a more noble pursuit? Maybe something bigger than yourself? 
I'm nominating Haz for MEC Chair the next time around. Second?
WM
I'm nominating Haz for MEC Chair the next time around. Second?
WM
11-16-2009, 10:06 PM
#4
Gets Weekends Off
Joined APC: Feb 2007
Position: headbanging
Posts: 954
Originally Posted by Wildmanny
Wow! I always thought you were a nice guy. Now, maybe I think you are a PO'ed Pit Bull. Have you ever thought of channeling the anger into a more noble pursuit? Maybe something bigger than yourself?
I'm nominating Haz for MEC Chair the next time around. Second?
WM
I'm nominating Haz for MEC Chair the next time around. Second?
WM
You know what Snoop Dogg said, "Got my mind on my money and my money on my mind."
11-16-2009, 11:22 PM
#7
Gets Weekends Off
Joined APC: May 2006
Posts: 2,889
Originally Posted by HazCan
Uhhh, thanks. I think...
You know what Snoop Dogg said, "Got my mind on my money and my money on my mind."
You know what Snoop Dogg said, "Got my mind on my money and my money on my mind."
YouTube - The Gourds - Gin and Juice
11-17-2009, 05:09 AM
#8
Nice lookin' tree, there!
Joined APC: Sep 2006
Position: MD-11, old man
Posts: 2,198
Originally Posted by Wildmanny
Wow! I always thought you were a nice guy. Now, maybe I think you are a PO'ed Pit Bull. Have you ever thought of channeling the anger into a more noble pursuit? Maybe something bigger than yourself?
I'm nominating Haz for MEC Chair the next time around. Second?
WM
I'm nominating Haz for MEC Chair the next time around. Second?
WM
fbh
11-17-2009, 05:39 AM
#9
Gets Weekends Off
Joined APC: May 2006
Posts: 480
Originally Posted by FLMD11CAPT
Yep.........surf's up and they don't have enough long boards or riders for 'em........sheesh.....what a clown show.
P.S. I wan't my money back too!!!!
P.S. I wan't my money back too!!!!
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