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- Thread starter edsaem6
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tieguy
Banned
tieguy
Banned
klein
Für Meno :)
Sure doesn't include the $2 Billion they just borrowed :
This is the 2nd time within 2 years, they issued $2 Billion of debt !
UPS last issued debt in March 2009, when the company sold $2 billion of 5- and 10-year notes, according to data compiled by Bloomberg.
UPS Sells Debt to Fund Pensions as U.S. Corporate Volume Hits $1 Trillion
By Sapna Maheshwari and John Detrixhe - Nov 8, 2010 3:31 PM MT
This is the 2nd time within 2 years, they issued $2 Billion of debt !
UPS last issued debt in March 2009, when the company sold $2 billion of 5- and 10-year notes, according to data compiled by Bloomberg.
UPS Sells Debt to Fund Pensions as U.S. Corporate Volume Hits $1 Trillion
By Sapna Maheshwari and John Detrixhe - Nov 8, 2010 3:31 PM MT
moreluck
golden ticket member
I said UPS had cash....I posted showing that. I never said anything about debt........so why would I post debt?
These #'s are from each company's most recently reported quarters (different as they may be)
klein
Für Meno :)
Well, I'm just saying the markets are overdue for a correction.
They gained 40% in such a short period of time, that a pullback is comming soon.
So, if someone sold it today for appx $72.00, and buys it back at $62. That person will end up with 15% more shares, or could just pocket the 15% cash and still own the same amount of shares.
What we do know, high unemployment is here to stay for a while (not good for the econemy).
The US debt is growing at an alarm rated speed (again not a good sign - any form of cuts or new taxes that will effect the public pockets will make the stockmarket retrieve).
Inflation signs are everywhere (higher gas and food prices - btw, Australia is a big exporter of sugar, wheat, grain, etc, mostly produced in Queensland - the flooded area, as we didn't already have those worlwide shortages).
When Inflation takes place, interest rates rise - when they rise - stockmarkets go down.
And by all means, only direction interest rates can go, is only up !
And there is still that fear of a double dip recession, so any first big stockmarket move downwards will probably trigger some panic selling.
Because Fedex and UPS share values are used for guidance about the econmonic outlook, they are amongst the first to feel the heat.
If you ask yourself, what is more likely to be the value of UPS by summertime (slowtime for markets) ? Up $10 to $82 or down $10 to $62 ?
I also didn't like the "BUY" recommendation from GS.
All along at around $50 a share they had "hold" on it, now at $70 they want you to buy.
Those crooks just want to unload their shares, now that they made profit on paper.
When you start borrowing money to pay for pensions, that's sort of a small warning signal , too.
On another note: Target (The US department store chain annouced it will be comming to Canada, and operating 220 stores by 2013).
Maybe they will bring their US prices on goods to us ?
That way we won't need to cross border shop, or shop via internet on US websites.
Which could lead to less international shipping to Canada.
They gained 40% in such a short period of time, that a pullback is comming soon.
So, if someone sold it today for appx $72.00, and buys it back at $62. That person will end up with 15% more shares, or could just pocket the 15% cash and still own the same amount of shares.
What we do know, high unemployment is here to stay for a while (not good for the econemy).
The US debt is growing at an alarm rated speed (again not a good sign - any form of cuts or new taxes that will effect the public pockets will make the stockmarket retrieve).
Inflation signs are everywhere (higher gas and food prices - btw, Australia is a big exporter of sugar, wheat, grain, etc, mostly produced in Queensland - the flooded area, as we didn't already have those worlwide shortages).
When Inflation takes place, interest rates rise - when they rise - stockmarkets go down.
And by all means, only direction interest rates can go, is only up !
And there is still that fear of a double dip recession, so any first big stockmarket move downwards will probably trigger some panic selling.
Because Fedex and UPS share values are used for guidance about the econmonic outlook, they are amongst the first to feel the heat.
If you ask yourself, what is more likely to be the value of UPS by summertime (slowtime for markets) ? Up $10 to $82 or down $10 to $62 ?
I also didn't like the "BUY" recommendation from GS.
All along at around $50 a share they had "hold" on it, now at $70 they want you to buy.
Those crooks just want to unload their shares, now that they made profit on paper.
When you start borrowing money to pay for pensions, that's sort of a small warning signal , too.
On another note: Target (The US department store chain annouced it will be comming to Canada, and operating 220 stores by 2013).
Maybe they will bring their US prices on goods to us ?
That way we won't need to cross border shop, or shop via internet on US websites.
Which could lead to less international shipping to Canada.
moreluck
golden ticket member
FedEx vs. UPS: Which Is the Right One to Buy? (Hint: Go With The Higher Dividend)
The world's two shipping companies are enjoying a massive rebound in volumes and revenue. United Parcel Service (UPS) reported earnings this week. The company reported that earnings surged 44% in the fourth quarter. UPS also stated that 2011 earnings per share should set an all-time high.
Which shipping giant is the right one to buy, FedEx (FDX) or UPS? With a broad recovery in the shipping business, many investors are asking that question. Let's look at the metrics of both stocks side by side.
MetricFDXUPSMarket Cap29.2 B54.4 BForward P/E17.9917.48Dividend Yield0.53%2.62%5 Year Div. Growth Rate*8.70%7.30%Price/Book1.997.89Price/Cash Flow*918.46Price/Earnings Growth*1.641.97Return on Equity11.2862.7Debt/Equity0.142.4Revenue TTM37.22 B48.5 BCash Flow TTM3.79 B3.09 BCapex/Cash Flow FYE0.90.455 Year Rev. Growth Rate*3.40%3.10%Net Profit Margin*3.41%4.75%Current Assets7.40 B10.76 BLong-term Debt1.67 B8.66 BData provided by I-Metrix
*Data provided by Charles Schwab & Co.
UPS is the real giant, almost twice the size, by market cap, of FedEx. Bigger isn't always better, though. Both stocks have enjoyed gains over the past twelve months, but UPS is already up over 26% versus a 12% gain for FedEx. Both stocks trade at a forward P/E of close to 18. Beyond the P/E, there are more differences than similarities.
FedEx has a dividend yield of only .53% versus 2.62% for UPS. Both companies have grown their dividend at a similar rate over the past five years. FedEx trades at a price/book of only 1.99 versus 7.89 for UPS. FedEx also wins on the price/cash flow ratio at 9x versus 18.46x for UPS. However, UPS has a much better return on equity at 62.7%, versus only 11.28% for Fedex.
UPS has a much higher debt load than FedEx. UPS holds $8.66 billion in long-term debt and has a debt/equity ratio of 2.4x. FedEx only holds $1.67 billion in long-term debt and has a debt/equity ratio of only 0.14x. Capex/Cash flow is a measure of how much reinvestment it takes to generate the company's cash flow (sometimes called CapFlow). You can read a detailed description of CapFlow here. The CapFlow ratio for FedEx is 0.9 versus only 0.45 for UPS.
UPS has a smaller, but growing international business. International shipments usually enjoy higher profit margins. Both companies have grown revenues over the past 5 years, with FedEx edging out UPS in that category.
FedEx is definitely the cheaper stock on most metrics. However, cheaper doesn't always mean better. Both companies should perform well as shipment volumes recover. As a value investor, I like the valuations of FedEx. As a dividend investor, I much prefer the dividend of UPS.
In choosing between the stocks, I would recommend UPS. Even though UPS has higher debt, the company has rewarded shareholders to a greater degree. The return on equity is much better for UPS. It seems as though UPS is using its capital more efficiently than FedEx. UPS is a growth story in a rebounding sector. UPS should continue to outperform FedEx in your portfolio.
The world's two shipping companies are enjoying a massive rebound in volumes and revenue. United Parcel Service (UPS) reported earnings this week. The company reported that earnings surged 44% in the fourth quarter. UPS also stated that 2011 earnings per share should set an all-time high.
Which shipping giant is the right one to buy, FedEx (FDX) or UPS? With a broad recovery in the shipping business, many investors are asking that question. Let's look at the metrics of both stocks side by side.
MetricFDXUPSMarket Cap29.2 B54.4 BForward P/E17.9917.48Dividend Yield0.53%2.62%5 Year Div. Growth Rate*8.70%7.30%Price/Book1.997.89Price/Cash Flow*918.46Price/Earnings Growth*1.641.97Return on Equity11.2862.7Debt/Equity0.142.4Revenue TTM37.22 B48.5 BCash Flow TTM3.79 B3.09 BCapex/Cash Flow FYE0.90.455 Year Rev. Growth Rate*3.40%3.10%Net Profit Margin*3.41%4.75%Current Assets7.40 B10.76 BLong-term Debt1.67 B8.66 BData provided by I-Metrix
*Data provided by Charles Schwab & Co.
UPS is the real giant, almost twice the size, by market cap, of FedEx. Bigger isn't always better, though. Both stocks have enjoyed gains over the past twelve months, but UPS is already up over 26% versus a 12% gain for FedEx. Both stocks trade at a forward P/E of close to 18. Beyond the P/E, there are more differences than similarities.
FedEx has a dividend yield of only .53% versus 2.62% for UPS. Both companies have grown their dividend at a similar rate over the past five years. FedEx trades at a price/book of only 1.99 versus 7.89 for UPS. FedEx also wins on the price/cash flow ratio at 9x versus 18.46x for UPS. However, UPS has a much better return on equity at 62.7%, versus only 11.28% for Fedex.
UPS has a much higher debt load than FedEx. UPS holds $8.66 billion in long-term debt and has a debt/equity ratio of 2.4x. FedEx only holds $1.67 billion in long-term debt and has a debt/equity ratio of only 0.14x. Capex/Cash flow is a measure of how much reinvestment it takes to generate the company's cash flow (sometimes called CapFlow). You can read a detailed description of CapFlow here. The CapFlow ratio for FedEx is 0.9 versus only 0.45 for UPS.
UPS has a smaller, but growing international business. International shipments usually enjoy higher profit margins. Both companies have grown revenues over the past 5 years, with FedEx edging out UPS in that category.
FedEx is definitely the cheaper stock on most metrics. However, cheaper doesn't always mean better. Both companies should perform well as shipment volumes recover. As a value investor, I like the valuations of FedEx. As a dividend investor, I much prefer the dividend of UPS.
In choosing between the stocks, I would recommend UPS. Even though UPS has higher debt, the company has rewarded shareholders to a greater degree. The return on equity is much better for UPS. It seems as though UPS is using its capital more efficiently than FedEx. UPS is a growth story in a rebounding sector. UPS should continue to outperform FedEx in your portfolio.
moreluck
golden ticket member
I disagree with the writer.....in the last paragraph, he says the 2 companies "face the same struggles". One is union and one is non-union......different struggles entirely!!
http://seekingalpha.com/article/251812-dividend-matchup-ups-vs-fedex?source=yahoo
http://seekingalpha.com/article/251812-dividend-matchup-ups-vs-fedex?source=yahoo
packageguy
Well-Known Member
Tieguy, with all this money UPS has made, why would they not pay some debt.
Returntosender
Well-Known Member
look at the cash flow quarterly statement at yahoo Q4 2010 to Q12011. profit from operations goes from 3.8 to 1.2
