Tuesday, December 09, 2008

Fedex Fubar

Fedex (FDX) slashed their earnings guidance and the shares drop dramatically. Approximately 13% by mid day. A month ago management was gamely saying all is relatively well and they expect growth. Now they have reversed themselves and investors are stampeding for the exits. At this point in the game how can anyone be surprised by bad news. Management and investors should realize that by now we are up to our necks in economic problems. Management and investors appear to be co-dependent in their delusional assumptions. DHL is laying off by the thousands and exiting entire business segments. Even the US post office is laying off employees. Then investors are surprised that Fedex is having trouble. Come on everyone, smell the coffee and wake up.