UPS stock is tanking, can concessions and furloughs be far behind?

[Baby Cakes]

Buy, buy, buy!!! I just bought 400 shares. Thanks, traders!

 

[brownie]

the only way we can be more profitable and bring stock prices up is to hire more ACP's and managers because we are not top hvy enough as it is, this kills me how they say the health care and fuel cost is eating thier profits, WTFO? what about all those wasted over heads sitting around sdf and collecting 300000$ a yr, that's what is eating profits. U don't bring any rev in when u pay mgmt 300000 a yr to manage a pilot group that's on auto pilot and the back bone of this company. GET RID OF ALL OF THEM, LOOK AT FEDX 4800 pilots and 21 managers, UPS 2700 PILOTS AND 200 OVER HEADS AND GROWING. AGAIN WWWWTTTTTFFFFFOOOOO?

 

[ALCOHOLIC]

UPS: Upgrading to Strong Buy on Correction [UPS072506cup_1344] Analyst(s): William H. Fisher

* We are upgrading UPS to a Strong Buy from an Outperform following today's sharp 13% correction on its effective lower guidance (targeting the lower end of 11-16% EPS growth in 2006).
* UPS grew EPS 10% in 2Q06, with volumes and pricing generally in-line with our expectations, though International Export volume growth of 6.5% was light apparently due to three fewer days in Europe in the quarter, unbeknownst to us. Fuel surcharges, which lag fuel costs by six weeks, were the other culprit. More importantly, UPS provided anemic 3Q06 midpoint EPS guidance of $0.89 (again impacted by adverse day count) in targeting the aforementioned low double-digit EPS growth for 2006. The estimates incorporate several factors including: 1) the "slight impact" of more moderate economic growth assumptions, with GDP 3% or slightly lower; 2) lower synergies from the Menlo integration ($50 million vs. $100 million); 3) an aforementioned fuel surcharge lag; and 4) higher purchased transport costs, particularly rail. However, UPS indicated that high margin International Export volumes would rebound to 10%+ volume gains in 2H06.
* Putting all this together, we have adjusted our 2006 and 2007 EPS estimates by $0.10 and $0.20, respectively, to $3.85 and $4.30. We think the moves take into account even softer Domestic volume assumptions than UPS forecast and moderate synergies in the supply chain, but an even more pronounced buyback than the $4 billion of the last 18 months.
* We continue to believe International will be the key profit growth driver, with new flight frequencies and UPS "balanced" global network driving the business, representing over 25% of total profits. Additionally, given its free cash flow, which we estimate at over $4 billion (~6.3% yield) before dividends, and a heady 1H buyback program at higher prices, we surmise that UPS will be far more aggressive on the buyback.
* Our new target price of $79 is based on 18.5x our 2007 EPS estimate for a premier franchise generating double-digit growth, substantive free cash, and sporting a 24% ROE, with a lower-than-historical multiple vs. the market. In terms of catalysts, a November analyst meeting should highlight 2007 prospects - a year representing UPS' 100th anniversary and one where the company will likely "pull all the stops." We stress pension costs will likely reverse and acquisition integration costs will be history.

 

[Green Baron 737]

Freightnazi, 400aDude and Brownie: Good job stirring up the shiiite yet again. I will get my bags packed and resumes out because I am in the bottom 400 of the pilot group and would expect my furlough notice soon.

Funny stuff!
GB

 

[vetteracer]

Low stock prices are not always a bad thing for a company, it has a statagy!

 

[VABB]

Just wait until the LCC cargo airlines come onto the scene!!

How about ValuPackage? FedTier? ABTran? TruckBlue??