Ian Fung FedEx FDX-N COMMENT Feb 21, 2020

Typically cyclical, but two trucking companies have recently gone bankrupt. Reshoring will increase trucking, whether less-than-load or full load. Maryland bridge accident stopped a lot of ship traffic, so that should increase demand for rail and trucking at least temporarily. 

International business, which is growing faster than domestic. Likes management. Huge share buybacks. Guided to $17 EPS this year, he thinks can jump easily into $20s by next year. Best operator in the space worldwide. Not a huge valuation. Decent yield of 1.9%.

He sold FedEx to buy more Apollo. FedEx talked about longer-term costs cuts last quarter, which lifted shares, but cost-cutting is now in the stock. Topline revenue declines are expected next week when they report. The stock hasn't done anything this year.

They reported a strong quarter last night and shares jumped 15% today, but what really caught the street's eye was the large share buyback they announced. It shows confidence.

They report Thursday. Is in a big turnaround, cutting costs and growing revenues. The CEO is pulling it off.

It's underperformed UPS, but shares have recovered a lot this year due to new management. Merging fleet and air operations helped by lowering costs. They have problems with overseas margins. Prefers Cargojet.

It reports Thursday. They're working hard to reduce costs and improve gross margins. This is a nervous period for them because of the coming holiday season.

He sold it at $295 recently. Loves the company, but earnings revisions came down. He bought at $262. He may re-buy it if the price and valuation are right. FedEx is a dominant player and the management team proves they can execute. The founder family still owns a lot of shares, and such families don't make crazy decision to preserve their stake. Also, cost savings and a huge share buyback are plusses. Also, they have fewer unionized employees than UPS.

Dominated by international and air freight. Today, he'd lean toward a domestic provider like UPS.

It doesn't do anything with Amazon, contrary to rumours. Shares are down 5% in the past week, but the CEO is doing a fine job. 

The CEO is doing a fine job in a very difficult time with all these tariffs. A very good company though can't advise buying a stock that went up 10% today [note: the wider market was up 10% too].