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Sell rating from the Bull on Fed Ex/UPS

godawgstgodawgst Member, Swaye's Wigwam Posts: 2,405
First Anniversary 5 Awesomes 5 Up Votes First Comment
Swaye's Wigwam
edited May 2022 in Tug Tavern
Amazon is now the 3rd largest shipper in America behind those two, and is adding more vehicles to their fleet at a 10% growth rate and iirc that is per quarter.

Their plan imo is to keep it in house, put enough squeeze on those two, then follow the Fed Ex plan of making their drivers independent route contractors using company vehicles. Next step will be to phase that out and just find lyft/uber/other ride platforms to go take the items door to door in the large cities. Ultimately, their plan is to use drones but that's a ways out.

Anyway, Fed Ex went from 210 a year ago, down to 90 ish back in March and is now back to over 200. Time to take profits.

UPS has the same problem as Fed Ex only add on the legacy costs of pension/insurance using the same ven diagram as the United States Social Security does (aka the upside down triangle) where you start with 10 employees covering every one retiree, to today having 2 and you see the issue what can Brown do for you. Double sell and don't look back.

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