FDX
📦 FedEx is planning a spinoff of its LTL (Less Than Truckload) vertical, expected in June 2026.
📈 The announcement of the spinoff caused a 10% surge in the stock price, despite initially poor quarterly results.
⚠️ Transportation companies like FedEx are often seen as barometers of the economy, with declines preceding recessions.
@bernardodegarcia:
“FedEx is going to carry out a spinoff of its LTL, of its Less Than Truckload vertical. That is very interesting. In fact, the day it announced it, after its quarterly results last quarter, we are talking about, it was already in Christmas, possibly, we are talking about November, December. The day it announced that in its quarterly results, they were quite bad, but the stock shot up 10%, which is what was corrected. Because, effectively, doing a spinoff is going to unlock value for the stock. I don’t remember when it was planned, but let’s see if we can find it. It depends on how you want to play it. FedEx spinoff date. Try division on Thursday, December 19th, it is restructured, June 26th. FedEx prepping LTL, not TLT, excuse me, Less than a truckload. So, FedEx, a very large company, has several verticals within it. And one of them is, let’s say, you pick up and send a package to your cousin, and this package goes in a less, because you don’t load a package, you don’t load an entire truck. So, FedEx puts it in a truck, and similar companies. And then we can, which is the most interesting, is what fascinates me the most about all this, you can now look at the different verticals of FedEx and, seeing the multiples that the market gives to different verticals, to different companies that are the verticals of FedEx, you can calculate a target price like, ‘Hey, but is FedEx overvalued or undervalued?’ And this you can see with SAIA. SAIA is an LTL, as we said, a transportation company, less than a truckload, LTL. Then you also have, what was it called? Old Dominion Freight Line. I always forget this ticker, God, how terrible it is. Old Dominion Freight Line is exactly, it’s a big LTL company. This one is 10 times bigger. SAIA, I think, capitalizes about 3 billion dollars. I don’t know how much DFD could capitalize, 10 billion dollars. But well, they seem like very interesting businesses to me, and realize that, as they are transportation, as we said, the first thing that falls, even before a recession, is transportation, and the first thing that rises is transportation.”
Viewers can see the exact part of the YouTube video where @bernardodegarcia discusses the stock here:
View the video on YouTube.
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