Shares of FedEx Corp. fell Monday as the broader markets lost ground, and an analyst said the company’s aggressive cost cuts might not be enough to offset the steep decline in volumes and the expected rise in fuel prices.
Stifel Nicolaus analyst David Ross cut the stock to “hold,” saying it won’t likely rise enough in the next several quarters to justify his previous “buy” rating.
He predicted shares will remain “range-bound” while uncertainty lingers about the timing and strength of economic recovery. Ross also forecast that the company’s volumes won’t get much better until next year.
FedEx has other problems that might tug on growth potential in the near future, the analyst said. A bill currently before Congress would make unionization easier – something that would likely drive up labor and other costs at the company. Rising fuel prices and pension liabilities will also affect growth, he said.
In the long run, Ross said he recommends FedEx over larger rival UPS Inc. because of its greater potential to improve margins and overall sales. But he suggested investors shouldn’t buy FedEx shares until they fall to about $50.
FedEx shares lost $2.36, or 3.9 percent, to $57.70 in afternoon trading. The stock has traded as high as $96.65 and as low as $34.02 in the past year.
Article from Memphis Daliy News, 5-12-09
Friday, May 15, 2009
Tuesday, May 12, 2009
Leaders in Investment Community Speak Out for Employee Free Choice
by Seth Michaels, May 11, 2009
A coalition of investors, representing nearly $400 billion in assets, has stepped forward to say the Employee Free Choice Act is the right move right now to protect workers and strengthen the economy.
In a letter to Congress, 26 leaders from the investment community strongly endorse the Employee Free Choice Act, saying that it’s critical not just for the cause of human rights, but for business, too. The support of these business leaders is a valuable corrective to the anti-union spin and disinformation promoted by corporate lobby groups.
READ MORE CLICK HERE
A coalition of investors, representing nearly $400 billion in assets, has stepped forward to say the Employee Free Choice Act is the right move right now to protect workers and strengthen the economy.
In a letter to Congress, 26 leaders from the investment community strongly endorse the Employee Free Choice Act, saying that it’s critical not just for the cause of human rights, but for business, too. The support of these business leaders is a valuable corrective to the anti-union spin and disinformation promoted by corporate lobby groups.
READ MORE CLICK HERE
Tuesday, May 5, 2009
IBT unity conference fedex freight organizing
On May 3, 2009, Teamster VP Ken Hall announces plan to organize FedEx at 8th annual Unity Conference. This segment highlights FedEx Freight campaign.
FedEx Drivers Win Class Cert. In Overtime Suit
FedEx Drivers Win Class Cert. In Overtime Suit - April 30, 2009
By Erin Fuchs
Emploment.Law360, New York (April 23, 2009)—A federal judge in California has certified five subclasses of drivers alleging FedEx Corp. bilked them of pay for missed meal periods, off-the-clock work and working split shifts. Judge Thelton E. Henderson of the U.S. District Court for the Northern District of California approved the five subclasses Tuesday.
He denied a motion to approve a sixth class, though, which would have consisted of drivers alleging FedEx hadn't paid them for inaccurate wage statements or paid their full wages when they left the company.
Judge Henderson also stayed further proceedings on three of the subclasses pending a California Supreme Court review of two employment cases. The high court will determine whether the word "provide" necessitates that employers certify that workers take breaks or simply requires them to offer the opportunity.
The subclasses would consist of delivery drivers or couriers employed by FedEx between April 14, 2006, and the present, all of whom are claiming FedEx denied them wages.
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By Erin Fuchs
Emploment.Law360, New York (April 23, 2009)—A federal judge in California has certified five subclasses of drivers alleging FedEx Corp. bilked them of pay for missed meal periods, off-the-clock work and working split shifts. Judge Thelton E. Henderson of the U.S. District Court for the Northern District of California approved the five subclasses Tuesday.
He denied a motion to approve a sixth class, though, which would have consisted of drivers alleging FedEx hadn't paid them for inaccurate wage statements or paid their full wages when they left the company.
Judge Henderson also stayed further proceedings on three of the subclasses pending a California Supreme Court review of two employment cases. The high court will determine whether the word "provide" necessitates that employers certify that workers take breaks or simply requires them to offer the opportunity.
The subclasses would consist of delivery drivers or couriers employed by FedEx between April 14, 2006, and the present, all of whom are claiming FedEx denied them wages.
Read More on first comment
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