FEDEX May Hit The Wall

[B772]

Just heard a new report quoting a Forbes comment that FEDEX may hit the wall. I know the US is in a dire situation but I thought FEDEX was safe.

I do not have any other details.

[Telstar]

http://www.forbes.com/home/business/2005/09/16/fedex-earnings-shipping-cx_tvr_0916fedex.html

[moosp]

As you see the first paragraph of this article reads:

"Are high fuel costs set to ground FedEx and UPS? Probably not, though investors may want to fasten their seat belts for a bit of turbulence."

So yet again the headline is an attention getter, and yes, I fell for it too.

I remember a media Prof. from years back who said something along the lines of, " If someone states that something "may" happen, then remember that there is an equal possibility that it may not."

True, all the carriers are hurting with the fuel costs, so if you want to look for the survivors in a years time, look for the ones that have lower costs in their other areas. $ per revenue tonne kilometre works, or your local unitary comparison.

[GlueBall]

FDX is making money and its stock is way up. The high cost of fuel is like turbulence, it affects all carriers. The price of fuel is cost based and therefore it is passed on to the customers. If anybody is "hitting the wall" it's not over increased fuel costs, but because of bankrupt management.