TA- When a stock price moves in a direction that doesn't comport with logic, you must ask yourself whether you don't see the situation correctly, or whether nobody else sees the situation correctly. I've examined the UPS situation, studied it for days, and have concluded that the competition will benefit from it short-term, as well as long-term. I've looked into FDX, the fed filings, the chart, and decided that even without the UPS strike, FDX was heading higher. The tape might show little movement, and to me that just means others haven't yet read the situation correctly...it's an opportunity to buy rather than an indication of future price stagnation.
When I bought into VVUS in May, the chart told me to sell short, but the 1Q earnings told me to buy. Perhaps I could have made a point or two by going with the flow on the short side, but by looking beyond the tape I was with VVUS as it doubled in price a couple months later.
When I drive along the street in Mahattan I see FedEx trucks everywhere. The clerk at a FedEx office tells me volume in the city is up 100%. While this may not be proof that FedEx stock will move higher...I think the next earnings will be a blowout.
Here's a piece I just came across:
Post Office Gains From UPS Strike
WASHINGTON (AP) - The post office may turn out to be a long-term
beneficiary of the battle between UPS and its Teamster union
employees. UPS says it has lost so much business permanently that
it will cut 15,000 jobs even if the strike ends this week. Federal
Express Corp., says it's handling Christmas-season volume levels.
DHL Worldwide Express, its volume up 40 percent, said today it is
signing up new U.S.-based international accounts. The Postal
Service has revived the special command center - normally used only
during the Christmas mail crush - and hired 2,700 temporary
workers. |
