Stock Market/Investing/Day Trading/Speculative Trading Thread

[Faux Sean Callahan]

Oh, that seems...worse? Lol.

I don’t think so.

To me it comes off as a plan to increase profitability.

Vs

Amazon shit canned us and we need to come up with a plan to replace this revenue.

 

[BingoDingo]

I don’t think so.

To me it comes off as a plan to increase profitability.

Vs

Amazon shit canned us and we need to come up with a plan to replace this revenue.

I meant from an investment perspective...trading volume for margins is typically a pretty big sign...and trading that much volume seems rough.

 

[herbsinator]

I meant from an investment perspective...trading volume for margins is typically a pretty big sign...and trading that much volume seems rough.

I don’t know how the market will react, but to paraphrase Buffett, the goal should be to maximize return on capital, not just growth for the sake of growth.

 

[BingoDingo]

I don’t know how the market will react, but to paraphrase Buffett, the goal should be to maximize return on capital, not just growth for the sake of growth.

Market reacted by chopping 20%+...and I agree, as long as you can replace the revenue, ha.

 

[Toe]

I don’t think so.

To me it comes off as a plan to increase profitability.

Vs

Amazon shit canned us and we need to come up with a plan to replace this revenue.

FedEx did the same thing years ago, and also said the same thing. But I mean if you think about it from Amazon's side, Amazon has done more and more of their own shipping & logistics over the years, so they probably don't have as much need for the other guys to handle it. The number of delivery routes where it makes sense for Amazon to rely on a third party shipper is likely dwindling.

 

[BingoDingo]

FedEx did the same thing years ago, and also said the same thing. But I mean if you think about it from Amazon's side, Amazon has done more and more of their own shipping & logistics over the years, so they probably don't have as much need for the other guys to handle it. The number of delivery routes where it makes sense for Amazon to rely on a third party shipper is likely dwindling.

Their Flex business model seems to fit their overflow as well...and that has greatly expanded over the past few years. Only a matter of time...so probably smart in the long run for UPS/FedEx.

 

[LoudHogRider]

I'll chime is as someone with some background in LTL transportation: One of my favorite quotes on the matter came from my former RVP of Sales (Pat Welker, may he RIP) at a regional meeting announcing our new "Profit Improvement Program", where Pat astutely opined the following:

"Gentlemen, we've been in the trucking business since 1956. We don't need any more PRACTICE hauling freight. We're here to make money."

Game. Set. Match.

I applaud UPS' decision WRT walking away from unprofitable business. The ONLY way that ever makes sense is to put some revenue - heck, ANY revenue - on a backhaul lane where you'd otherwise be running empties just to move equipment into place to support your headhaul lanes. The people who have this down to a science are the airlines. Their pricing models are elite.

 

[BingoDingo]

The people who have this down to a science are the airlines. Their pricing models are elite.

Big time. Jet fuel demands capital discipline (and can't melt steel beams)...

 

[Toe]

The people who have this down to a science are the airlines. Their pricing models are elite.

But then they still dump their money into stock buybacks and need a bailout when there's a recession...