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UPS: Someone Wake Me At $30

June 17, 2008 11:40 PM

I asked a very simple question a month ago about UPS. Why is the stock trading with a 157 PE? Unless there is a one time charge that i am not aware of, which is possible, this stock should be $20 or less. I simply do not understand the valuation and maybe someone can enlighten me on this. A delivery company with a 157 PE…gas prices plunging profits….weak economy hurting deliveries….. That smells like long to me - NOT.

With that said, it has to clear $64.01 to really get some pressure going. I did call the recent short at $74, but that was a chart call, not valuation. I rarely ever will make a valuation call for two reasons. i have seen the market be wrong for years and there may be something I do not understand or know. But being long this stock is somewhere between dumb and dumber.

Please post if you know why this stock has such a rich valuation. i am curious as to why.

Written by Tom@StockBlade.com · Filed Under UPS 

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