The Most Organized Member of the Market

Every stock market investor has been in a spot at least once, needing to ensure that a delivery reaches on time, or waiting anxiously for vital documents and articles to arrive. The sight of the FedEx logo is so reassuring for consignor and consignee alike that we take its reliability for granted. It is a truism of the business world that ‘a kingdom can be lost for want of a nail,’ but you can count of FedEx to make sure that this does not happen!

FedEx recently delivered penguins and otters, displaced by Katrina, to their original homes in the area which was devastated by the hurricane a year ago. Why should such a consignment matter for the stock market? The precious consignment speaks volumes for the business excellence of FedEx, and how this company has become synonymous with the best standards of logistics.

All Stock Market Stakeholders Rely on FedEx!

Hard nosed stock market investors would want glorious examples of leadership in a business sector to translate in to superior financial results. FedEx does not disappoint its share holders in this important respect. 2006 revenues are expected to climb by about 10% over the previous year, and there is margin improvement as well. The share price has a 52-week high of just over $120 as of August 2006, and there are clear signs of further appreciation in the near future as well.

FedEx has an important arrangement with the US postal service for handling domestic mail. This assures FedEx of substantial revenues to meet its intricate infrastructure in the country. The arrangement lends valuable stability to the company’s stock market valuation. The agreement is valid until 2013, which has an obvious long-term impact for the share price. Revenues from such arrangements give FedEx essential resources to invest in building better facilities, which in turn will translate to superior customer value delivery. Global e-commerce business development means that people everywhere will have more reasons to receive consignments of all shapes, sizes and values. The leader in the business of reliable and timely deliveries can look forward to good times!

Bookmark/Search this post with: