Share price

Discussion in 'XPO Logistics' started by sucker666, Nov 29, 2016.

  1. sucker666

    sucker666 Well-Known Member

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    Im going to put these questions out there for discussion. How important do you think share price is to are company ? Is it THE measure of success? If share price continues to climb what effect will it have for us employees ? Do we measure are success as company in shareholder value and where does that leave our customers as far as value and service?

    I know that more than one question but this is something I have been giving thought to as of late. A Successful substantive company must produce more than just shareholder value it must focus on customer needs and employee satisfaction in order to have a long term exsistence . Without some of these basic blocks for a foundation will it succeed?
    When I was in college I remember learning about managerial capitalism: " mangers focused on shareholders , customers and employee well being in equal terms of importance" VS. " Shareholder captilism: " where the sole focus is on shareholder value"

    Just some thought for discussion
     
    Last edited: Nov 29, 2016
  2. snaildriver

    snaildriver Retired

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    These days, it's all about the shareholders, and top executives hold a lot of shares. Stock options were originally intended to increase company performance, but it didn't take long for executives to realize they could get rich by manipulating stock prices. Look at Doug.
     
    Last edited: Nov 29, 2016
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  3. Perma-bull

    Perma-bull New Member

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    "A Successful substantive company must produce more than just shareholder value it must focus on customer needs and employee satisfaction in order to have a long term exsistence"

    Not gonna lie, I had to look up the word 'substantive' before I replied. Yup, it's a real word that applies here. My view is that if a company focuses on employee satisfaction AND customer needs then the shareholder value will take care of itself, to an extent.

    The thing is, people like us report to low level management. Low level management report to middle level management. And they report to directors. Directors report to vice presidents. And they report to someone higher. But at the end of the day, everyone reports to the board of directors, who reports to the shareholders.

    So when you ask a question like, "is share price the definitive measure of how a company is doing", well yes, to many people it is the most important thing a company can be measured upon.
     
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  4. highspeeds

    highspeeds ENTERTAINMENT USE ONLY

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    For a company in general to have a high stock price is a good thing. It means you have more equity in your company and can leverage that to build your business big or stronger.

    For Jacobs it's all about resale value. He has to get the price up to get himself paid when he sells us off.
     
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  5. highspeeds

    highspeeds ENTERTAINMENT USE ONLY

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    And just like Doug, Jacobs has it set up so that he makes out big time in the sale of the company. Remember how we used to talk about how many shares Doug was getting and what he was doing with them ? And why the company all the sudden didn't want the employees having shares ? And then they converted our shares into common shares and they made preferred stock options ? This is Jacobs last big flip. It's the money he will retire on. The guy is nearly 60. One last score and he is set.
     
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  6. cheezcutter

    cheezcutter Member

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    I think where Jacobs is concerned,it's not the kill,it's the thrill of the chase. too much is never enough for these guys,Romney is the same kind of guy,build a company,strip out the equity and value,dump it and move on with the profit,im sure it will happen here its just a matter of when.
     
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  7. sucker666

    sucker666 Well-Known Member

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    I think you hit the nail right on the head with that. I don't think it's all about money at some point you have enough FU money and motivations sometimes turn to another driving factor and sometimes it's just pure greed and bragging rights.
     
  8. icuicp

    icuicp Well-Known Member

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    If what everyone is hinting at is true ( that Brad Jacobs is fattening the LTL unit to get rid of it ) who would be the target customer?
     
  9. radman

    radman moving and grooving

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    United Parcel Service. They have the money to buy and they have the need to compete with FedEx.
     
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  10. George

    George 3rd rock from the sun

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    Before the buyout Conway stock was available to us in our T Rowe Price 401k. Some of us bought and sold CNW stock and made very good money. I was and still am disappointed that XPO stock was never offered in our 401k plan. A $20+ increase per share would have looked good in my account. Press on
     
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  11. highspeeds

    highspeeds ENTERTAINMENT USE ONLY

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    Some one we ain't never heard of. Who knew what a XPO was until they bought us ? It's not going to be anything you recognize. And he isn't selling the LTL off separate. He is integrating it into the rest. He never rebranded anything until he bought us. And now he is rebranding everything he has bought over the past 4 years all at once. This mess will sold off in one massive score for him.
     
  12. highspeeds

    highspeeds ENTERTAINMENT USE ONLY

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    They have the money because the know better than to buy a turd. Remember when they were looking to buy a LTL years ago ? They bought OVERNITE instead. They are not interested in XPO.

    The need to compete with FedEx ? They are way bigger than FedEx. FedEx is one of those sucker fishes hanging onto a sharks belly. You gotta be kidding us with that, right ?
     
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  13. radman

    radman moving and grooving

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    Fed Ex Freight is a giant in the LTL business. Almost as big as us and YRC combined. Thats why I think they buy us, just us, not the rest of this monster we are part of now.
     
  14. smokin'joe

    smokin'joe Well-Known Member

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    My question is who would be in the market to spend the billion or so dollars required to but the LTL side of XPO? Most big corps are already established with a carrier.
     
  15. Fly-by-night

    Fly-by-night Only when you care to send the very best

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    FedEx bought American Freightways long before UPS bought overnight. UPS bought O.N. to be competitive with FedEx. FedEx freight is a monster and makes lots money were from what I hear UPS freight just gets by.
     
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  16. icuicp

    icuicp Well-Known Member

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    Overnight is a placeholder. UPS purchased them in a bid to fill out their portfolio and give their account executives the option to say "we have this too".

    Also remember XPO Logistics LTL unit started out as regionals. They could easily be sold that way as well. One way to unlock capital is to "part out" what you are trying to sell. The separate pieces may have more value than the whole unit. And that may also make the purchase of regional parts attractive to smaller companies , increasing your target audience of potential buyers.
     
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  17. trucknfool

    trucknfool Well-Known Member

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    Again, UPS has enough money to do what they want. They have UPS Freight now. They would just cute rates and eliminate competition if they wanted a bigger presence in Ltl. It never fails at every company there's always a few that think's UPS is going to buy them. They don't need XPO.
     
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  18. ole man

    ole man Active Member

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  19. ole man

    ole man Active Member

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    To me, the idea is to drive stick price as high as possible without consideration of the long term impact on the company or its employees.
     
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