I've been a long time believer in FedEx. Back on November 17, 1999 I wrote on this site:
"I have had FedEx in my Savvy Stock portfolio as my B2B stock pick."B2B means "business to business" rather than "business to consumer" internet commerce.
http://www.suite101.com/discussion.cfm/i...
FDX vs TEFQX (another analyst's B2B pick in early 2000)
I bought some FedEx in late 1999 for $42 and change when I was diversifying from my company stock in HP. HP eventually went much lower in the tech meltdown which shows why diversification is so important.
I'm curious if others believe Federal Express can continue to grow as it yesterday set a new all time high.
More information on Federal Express.
Why I Still Like FedEx
Packages don't complain about leg room or food quality. You can actually make money transporting packages by air unlike transporting humans.
Also, with people working together all over the world, there is often a great need to have things get from point A to point B very quickly. That is why FedEx bought Kinkos.
When the docks closed in CA for the strike and there was a shortage of LCDs for laptops, FedEx was used to get LCD monitors to computer vendors to sell to customers. There is ALWAYS going to be shortages, especially with JIT (just in time) manufacturing where $hit happens...
Finally, there are many business models that are just getting started that can make a fortune with FedEx. For example: I have an older 1994 Corvette. The water pump went out and we decided to change the rotor & cap which are behind the water pump since a tune-up was due in 5,000 miles. At first, the shop wanted $422 for the distributor cap n rotor! I used the internet and found a place that would sell one at cost for about half that delivered. They make their money on the handling charge. They didn't have overnight delivery and were across the country so I didn't use them but I did suggest they consider adding overnight delivery for a premium as they could sell parts to shops all across the country if they had it AND made a reputation for themselves in quality and service.
My point is there is a huge market for auto parts that are quite expensive due to "stocking costs" that can be served eventually once someone puts their mind to it. Perhaps an Amazon.CAR.com....
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