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UPSPosted by Randy on: 2005-10-21 08:04:53 in category:
Investments [ Print | Permalink / 0 Comment(s) ] October 20, 2005 UPS Third quarter 2005 The Revenues were up 18%, and the profits were up 23%. Strong volume gains throughout the US. The company is forecasting that UPSâ??s growth momentum will continue. $3.9 billion in cash and investments $4.5 billion in cash flow from the first three quarters Forecasting 16% or higher growth in earnings for next year. Comments Due to seasonality, this was historically their weakest quarter of the year, and the fourth quarter is historically one of their best. When you consider the higher oil and gas prices and knowing how it affected many in the transportation industry, and factor in Hurricane Katrina and other Gulf coast issues, this was an outstanding quarter for UPS. I believe that if a company can execute well in a tough environment, the probability to execute or exceed the numbers when time are better are much higher. They have a chance to have a good fourth Quarter. We believe that our base thesis is still on target: as the Internet evolves around the world it will change how we buy goods (for example Amazon and Ebay in the US). The need to ship and receive products should correspond with the growth of the new Internet models. Please review http://www.durig.com â??The Big Brown Trucksâ??. As these new models populate the globe, like they are in the US, they will need a solution to distribute their global product. It appears to us that UPS is still the leading company to solve this worldwide need. Judged by their most recent quarter, they continue to execute in well in a tougher environment. In my opinion, itâ??s hard to find a big Blue Chip company that both currently is and possibly will continue growing at these double-digit growth rates. Randy Durig owns UPS in these personal accounts and in the Monopoly Blue Chip Portfolios. Past performance is not a guarantee for future returns. Durig Capital LLC may only do business if registered in your state. Durig Capital is a registered investment advisor. You can contact us at toll free 971-732-5119 or rdurig@durig.com. |
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