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Ups Ipo

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United Parcel Service

By Michael Vida Carmela Miele Salvatore Samà

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St. John’s University Undergraduate Student Managed Investment Fund

United Parcel Service, Inc. (UPS)
Type of Report: Recommendation & Analysis Recommendation:

$58.40

Date: April 14, 2003

Limit order to buy 175 shares at $55.00 Market order to buy 175 shares

Industry: Transportation - Air Delivery, Freight & Parcel Services Analysts: Michael Vida - mvida24@hotmail.com Carmela Miele – carmela37@aol.com Salvatore Samà – samasalvatore@yahoo.it

Share Data Price - $58.40 Date – April 14, 2003 Target Price - $60.35 52 Week Price Range - $53.00 - $67.10 Market Capitalization - $ 64.644 Billion Shares Outstanding – 1.12 Billion Revenue - $31.272 Billion Proj. LT EPS Growth Rate: 14% ROE 2002: 26.10% Earnings Per Share and Projections FY Ending Full Year 12/01A 2.13 12/02A 2.84 12/03E 2.29 12/04E 2.67 12/05E 2.94

Fundamentals P/E (12/02): 20.2 P/E (12/03E): 26.46 Book Value/Share: $11.09 Price/Book Value: 5.167 Dividend Yield: 1.46%

Consensus Est. Avg=2.33 (yahoo) Avg=2.67 (yahoo) N/A

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Executive Summary We are recommending the purchase of 350 shares of UPS, currently trading on the NYSE at $57.30. United Parcel Services has one of the most extensive global ground and air networks for transportation. The largest transportation company, UPS, has been outperforming S&P by 30%. UPS is not solely a transportation company; they also act as consultants for the logistics of major companies in 130 countries. UPS has always been a leader in technology, for this reason, they have almost cornered that market in default shippers for e- commerce sites. UPS is poised to benefit from the continuing growth of the e-commerce business. While UPS’s revenue from domestic packages has seen a slight decrease over the past several years, both their international package revenue

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